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: VAT RATES :: Central Excise rule to resale the machines to a new company :: VAT Audit :: due date for vat payment :: empanelment :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ACCOUNTING STANDARD :: list of goods taxed at 4% :: TAX RATES - GOODS TAXABLE @ 4% :: form 3cd :: articles on VAT and GST in India :: TDS :: cpt :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ACCOUNTING STANDARDS
 
 
« News Headlines »
 Income tax filing FAQs part 1
 Filing Income Tax Returns? Things To Keep In Mind As Deadline Approaches
 Filing of online return for 4th quarter of 2016-17- extension of period thereof.
 New tax accounting standards may reduce leeway for infrastructure companies
 GST – CONCEPT & STATUS – As on 01st May, 2017
 Govt extends VAT deadline, relief for developers
 Income Tax Appellate Tribunal Rules, 2017
 Got your Form 16? You should file income tax returns early to enjoy benefits
 Want to save tax? Here are 6 best investment options for you
 Income Tax department activates e-filing facility for all ITRs
 All the income-tax return forms for the current assessment year are available online

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