Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: Central Excise rule to resale the machines to a new company :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ACCOUNTING STANDARDS :: form 3cd :: cpt :: empanelment :: due date for vat payment :: TAX RATES - GOODS TAXABLE @ 4% :: VAT Audit :: articles on VAT and GST in India :: list of goods taxed at 4% :: ACCOUNTING STANDARD :: ARTICLES ON INPUT TAX CREDIT IN VAT :: TDS :: VAT RATES
 
 
« News Headlines »
 CBDT simplifies ITR filing process from FY18
 Govt extends service tax return filing date to April 30
 No move to tax farm income, clarifies Arun Jaitley
 New board for indirect taxes to become operational from June 1
  9 changes that came into effect from April 1
 First time filing income tax? Here's all you need to know about Form 16 and Form 26AS
 New Opening Financial Controller Chartered Accountant (Manufacturing Plant) A Leading Company
 Income Tax Filing 2017: All you want to know about the single page ITR form SAHAJ
 How to benefit from investments in tax saving mutual funds
 60 per cent of income tax notices on fishy cash deposits returned
 All about income tax return form Sahaj

Sales tax cut to aid logistics cos growth plans
January, 05th 2007

Logistics companies are raising a toast to the first step taken by the government towards the gradual phase out of the central sales tax (CST) regime. The CST phase out is expected to be a key logistics demand driver. Applicable from April 2007, CST will be reduced to 3% from the existing 4% rate.

According to Prashant Mishra, manager-marketing communication, Safexpress, This is a welcome move as the share of the express distribution pie will increase. It will also open up new avenues for the logistics industry as companies will start planning their supply chain based on demand rather than worrying about tax savings.

Under the existing CST regime, manufacturing companies would set up multiple stocking points, resulting higher costs of inventory, manpower, infrastructure and other overheads. With the phasing out of CST, manufacturers will be able to operate on a hub-and-spoke model. Thus, they can have large regional warehouses that can be used to supply cargo to different states, which in turn will lead to greater outsourcing of the job to logistics service providers.

Mr Mishra believes that phasing out of CST will also pave the way for value added taxation (VAT) becoming a central level tax, which in turn will guarantee a much smoother logistics and distribution movement. The CST is expected to be phased out over a period of three years from 4% to 3% in 2007-08, 2% in 2008-09 and 1% in 2009-10. The tax will be phased out completely in 2010-11.

Earlier, in a bid to reduce taxes, some dealers would move goods without valid documents. In a competitive transportation market, many transporters were forced to carry such goods. This resulted in greater checking at check-posts and vehicles getting stranded with goods, said Vineet Agarwal, executive director, Transport Corporation of India (TCI).

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Application Management Solutions Application Management System Application Management Software System Application Management Development Application Management Software Development

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions