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) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Latest Expert Exchange
« News Headlines »
 Government extends sale of pre-GST goods with stickers of revised price till July 31
 All 7 ITR forms for assessment year 2018-19 activated for e-filing: Income Tax Department
 Check if new salary structure is income tax efficient
 GST refund drive extended till June 16
 5 income tax returns filing mistakes you must avoid
 Your complete guide to file income tax return
 Input Tax Credit refund drive till June 14
 File Your Income Tax Return for FY 2017-18 Immediately, Know Why
 Which ITR form to file if income is in dollars?
 5 investment lessons to maximize returns; here is all you need to know
 Deadline for filing first instalment of advance tax ends 15 June

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 2018 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