Ef­fi­ciency in con­nec­tiv­ity, tax ben­e­fits

Cargo Talk - - Cover Story - Oil­ver Bohm

Vikram Man­sukhani, 3PLs, DIESL

GST im­ple­men­ta­tion is ex­pected to bring down the cost of goods, if one is suc­cess­ful in de­sign­ing an ex­tremely ju­di­cious sup­ply chain to en­sure that this cost re­duc­tion is not com­pro­mised by non-avail­abil­ity of stocks due to un­ad­ven­tur­ous plan­ning and up­surge in dis­tri­bu­tion costs. Lo­gis­tics costs in In­dia are high to a large ex­tent due to un­avail­abil­ity of qual­ity in­fra­struc­ture like good roads, ex­change ter­mi­nals, air freight sta­tions, freight vil­lages, im­prov­ing rail con­nec­tiv­ity to ports. The gov­ern­ment could en­cour­age in­vest­ment in in­fra­struc­ture de­vel­op­ment through sub­si­dies and tax hol­i­days, pro­vided this sys­tem is trans­par­ent, well tar­geted, and suit­ably de­signed for prac­ti­cal im­ple­men­ta­tion.

Head-

This will en­able us to op­er­ate with lower cost and stay com­pet­i­tive in mar­ket. As the gov­ern­ment has taken steps to bring sur­face trans­port and ship­ping un­der one head, they should also as­sign lo­gis­tics an in­dus­try sta­tus.

Like the SEZs set up to counter mul­ti­plic­ity of clear­ances, ab­sence of good in­fra­struc­ture and to at­tract for­eign in­vest­ments, the gov­er­ment could con­sider set­ting up ware­hous­ing zones which will of­fer all ad­vanced fa­cil­i­ties.

Srini­vas

CEO, Schenker In­dia The rental cost cur­rently is sub­ject to ser­vice tax of 14.5 per cent and is at­tract­ing tax de­ductible at source of 10 per cent. If the rent is con­sid­ered as ser­vices be­ing pro­vided, TDS should not be charged at the same rate ap­pli­ca­ble to in­ter­est in de­posits. In case of the rent be­ing con­sid­ered as re­turn on in­vest­ment, there should not be any ser­vice tax. The need is to speed up the process for ap­proval for change of land use.

CEO, Schenker In­dia

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.