On July 8, listed logistics startup BlackBuck announced that the Income Tax (IT) Department has sent it a tax demand notice for INR 28.55 Lakh. The company stated in a statement with the exchanges that the July 7 tax notice was sent because certain expenses that qualified for tax deducted at source (TDS) had not been taxed.
The company claims that the tax demand, which included taxes, was made by the Bengaluru office of the Assistant Commissioner of Income Tax (TDS) and related to the fiscal year 2017–18 (FY18).
In explaining the nature of the infractions, BlackBuck said that an order under Sections 201(1) and 201(1A) of the Income-tax Act, 1961, was issued because some expenses did not have tax deducted at the source, confirming the total demand payment of INR 28,55,872/-, including applicable interest.
BlackBuck Plans to Appeal the Order
According to BlackBuck, it has a “strong case on merits,” and the business intends to appeal the notification to the relevant authority.
The logistics firm added that there would be “no material implications” for the business from the IT department’s order.
BlackBuck, which was founded in 2015 by Rajesh Yabaji, Chanakya Hridaya, and Ramasubramaniam B, began as an online truck aggregator before growing to include a wide variety of load management, telemetry, payment, and vehicle financing products.
It links small and large companies with shipping needs with truck fleet operators. Additionally, the organisation provides fuel cards and FASTag payments, GPS tracking and truck theft protection systems, certified communication channels between the shipper and the trucker, and vehicle financing options.
BlackBuck Financial Outlook
The logistics company’s fourth quarter (Q4) of the fiscal year 2024–25 (FY25) had a consolidated net profit of INR 280.1 Cr, compared to a net loss of INR 90.8 Cr in the same period last year.
A tax credit of INR 245 Cr during the reviewed quarter was the reason for the strong, profitable results. Operating revenues, on the other hand, increased by 30.6% to INR 121.8 Cr in Q4 FY25 from INR 93.2 Cr in the same period the previous year.
BlackBuck Subsidiary Gears Up for Digital Payments with RBI’s PPI Nod
The Reserve Bank of India (RBI) has granted a prepaid payment instruments (PPI) licence to Zinka Logistics, a subsidiary of listed logistics giant BlackBuck.
The business stated in an exchange statement that its fully owned subsidiary, TZF Logistics Solutions Pvt Ltd, was awarded the licence by the central bank. Banks and non-banks cannot issue PPIs without a licence under the Payment and Settlement Systems Act of 2007.
To put it in perspective, PPIs enable remittance facilities, conduct financial activities, assist the purchase of goods and services, and more, all of which are facilitated by the value they store.
According to BlackBuck’s petition, the licence will assist the company’s fully owned subsidiary TZF Logistics Solutions Pvt Ltd, in setting up and running a payment system for prepaid payment instruments.
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