kalllppaanaaa

Industry expects a boost if GST gets implemented: Patel Integrated Logistics

Areef Patel, Vice Chairman, Patel Integrated Logistics, informs, “Operating costs will be lowered considerably and the logistics industry will get a significant boost if GST is implemented on schedule this year. A uniform tax structure and the creation of a one nation one tax regime will lead to seamless movement of goods and services from one state to another. With the subsuming of several taxes into one common tax structure, there will be no lengthy paperwork at state trucking points and long winding queues will become a thing of the past. There will be a huge rationalisation of expenditure as logistics players will be in a position to optimise their warehousing needs and restructure their infrastructure strategies. However, it needs to be mentioned here that a single registration mechanism needs to be facilitated by the government for the logistics sector like the insurance and banking sector.”

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Freight cost expected to drop by 4 per cent with GST on roll: Tiger Logistics

Harpreet Singh Malhotra, Chairman & Managing Director, Tiger Logistics (India), says, “Transport services (railways, air transport), will be under the five per cent category because their main input is petroleum, which is outside GST ambit. Freight charges are expected to come down by four to10 per cent following the imposition of a uniform five per cent GST rate for goods transport in all modes, and the input tax credit benefit for transporters, third-party logistics firms, common carriers, packers and movers and freight forwarders. At present, the retail goods booking and delivery service providers (goods agents) levy a service tax on gross freight charges displayed on consignment note at 4.75 per cent. If the input tax credits are taken into account on GST on purchase of vehicles, tyres, insurance cover and other goods and services by common carriers, retail goods booking agents, the impact of five per cent service tax will be neutralised. So, freight cost is expected to drop by over four per cent with implementation of goods and service tax. The proposal to give input tax credit will encourage several unorganised truck-owners to register themselves under GST.”

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Great opportunity for the 3PL trade: FFFAI

S Ramakrishna, Vice Chairman, FFFAI, says, “It was more or less clear that there would an increase of 0.5 per cent on tax which meant from 4.5 per cent service tax to five per cent in GST regime. After the advent of GST there will be uniform tax rates across borders and state boundaries will no more be a parameter for deciding the routes. Multi modal connectivity would be the prime factor for warehouse operators, who eventually need to rejig the warehouse locations. This should lead to supply chain model in more robust and efficient manner. This will lead to rationalisation of selecting warehouse, transportation etc which would provide competitive advantage to the industry.” “On the international trade, the government missed a great opportunity of Nil rate of GST from end to end supply like many countries in the world. The concept of reverse charges on international shipments on imports or payment of GST in export freight would definitely would have some measure of negativity especially knowing the refund process. The cost of otherwise competitive export market would also have some impact due to GST,” he added.

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Cargo industry positive about GST roll out

The Goods and Services tax (GST), which aims to subsume most of the indirect taxes with the objective to lead the country towards ‘one nation, one tax,’ is almost ready for roll out. The government has kept large number of items under 18 per cent tax slab. Post GST implementation, most FMCG companies will be able to generate substantial savings in logistics and distribution costs as the need for multiple sales depots will be eliminated. Presently, FMCG companies pay nearly 24-25 per cent taxes including excise duty, VAT and entry tax. With a tax rate of 18 per cent under GST, there could be a significant reduction of six to seven per cent in taxes. According to the new GST Bill, Arun Jaitley, Finance Minister, Government of India, mentioned that road transport, air transport and rail transport will come under five per cent slab. Broadly, the GST regime will usher savings on logistics and will encourage the industry to be more organised. Industry veterans shared his views on the same.

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Minister of Civil Aviation unveiled Advance Air Cargo Handling Training Programme

Air Cargo Forum India (ACFI) has launched Advance Air Cargo Handling Training Programme in the capital. The programme was launched by Ashok Gajapathi Raju Pusapati, Minister of Civil Aviation, Government of India in the presence of more than 125 numbers including senior government officials, members from various trade bodies and representatives of entire air cargo logistics industry. The programme is aimed to benefit the air cargo industry in India contributing to Government of India’s Skill India plans.

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Apollo LogiSolutions launches first EXIM train from ICD Kashipur

Kashipur Infrastructure & Freight Terminals (KIFTPL), a Joint Venture between Apollo LogiSolutions Limited (ALS) and Indian Glycols Limited (IGL), has launched first EXIM (Export-Import) train from Inland Container Depot (ICD) Kashipur. Ajay Tamta, Minister of State for Textiles, Government of India flagged off the train covering connecting Kashipur with Mundra port. The EXIM train will be servicing all gateway port/ports like Mundra and Pipavav. The state-of-the-art private freight terminal in Kashipur, Uttarakhand, is spread over 41 acres of land, to cater the logistics requirements of region. Nearly 84 rakes of domestic transportations equivalent to 15000 TEUs of throughput has already taken place from this terminal since its operation. Raaja Kanwar, Vice Chairman & Managing Director, Apollo International said, “This is a significant step towards building integrated logistics capabilities to provide better facilities to our hinterland customers in the near future.”

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Maersk Line to offer standalone direct service to and from North Europe out of Pipavav

Maersk Line has added Pipavav as an additional port of call for its ME1 service. The ME1 will now have three gateway ports, Pipavav in addition to Nhava Sheva and Mundra. With the Maersk Group strategically placed at Pipavav, there would be no impact on the transit time. This will be beneficial for the customers in northern India as they will have more options to route their ICD cargo to and from North Europe, Mediterranean and West Africa. Franck Dedenis, Managing Director, Maersk Line (India, Sri Lanka and Bangladesh) said, “We continue to work towards creating a more efficient business environment. This addition is a part of our continued efforts to provide enhanced global footprints for our customers. With no impact on the transit time, the customers can look forward to a refined supply chain”

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NCHAA to organise GST meet in Noida after GSTC meeting in Srinagar

Customs brokers and freight forwarders are gearing up to comply with the Goods and Services Tax (GST) regime, which is likely to be implemented from July 1, 2017. Accordingly, Noida Customs House Agents Association (NCHAA), one of the 28 members of the Federation of Freight Forwarders’ Associations in India (FFFAI), is planning to organise a seminars for its members and trade associates after the meeting of GST Council, scheduled for May 18-19 in Srinagar. “As far as preparedness is concerned, it is not only the logistic sector, I think each sector is prepared or getting prepared for implementation of GST. The logistics sector especially the international players in freight forwarding and custom brokers have challenges which would bother for some time. However, since we as an industry rejig ourselves in adapting the changes fastest ever, therefore our challenges would be very temporary,” said S Ramakrishna, President, NCHAA and Vice Chairman, FFFAI on the recent development on GST and preparedness of Freight Forwards & Customs Brokers. “Noida Association would also be taking similar efforts in organising such seminars locally as well. We are awaiting the Decision of the GST Council meeting scheduled for May 18-19 in Srinagar on the rate structure for both goods and services, which we will cover in our seminars and meetings conclusively in all spheres,” shared Ramakrishna.

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APM Terminals Pipavav handles 100,000th Auto Unit

APM Terminals Pipavav has reached a milestone of 100,000 automobiles handled at the port’s Roll On-Roll Off (Ro/Ro) facility, 20 months after commencing auto-loading and discharging operations. Ro/Ro services were introduced at the port in August 2015, after NYK Auto Logistics India (NALI) invested in a state-of-the art stock yard and pre-delivery inspection facility. With USD $3 billion investment expected by automobiles companies in Gujarat by 2020, more than two million passenger vehicles are projected to be produced in the region in the next five to six years. Most of the manufacturing in Gujarat is for the Indian export market. “With the Indian government’s “Make in India” initiative, we have seen a surge in automotive manufacturing investment in the Sanand, Hansalpur and Vithalapur belt in Gujarat, and our modern and efficient Ro/Ro facility can play a major role in India’s emergence as a major automotive exporter” said, Keld Pedersen, Managing Director, APM Terminals.

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DB Schenker extends its LANDbridge product to the Indian subcontinent

DB Schenker has announced the launch of its LANDbridge product in the Indian subcontinent. The international road service from the company’s road portfolio in Asia Pacific has grown with the recent Bangalore-Dhaka cross-border shipments piloted with Linde Gas India. This 2,000 km road routing involved passage through three different Indian states and clearance procedures at the Petrapole-Benapole border to enter the capital city of Dhaka. The coordination and establishment of the India-Bangladesh route opens the door to more possibilities in the region, enabling DB Schenker to cater to more industries and customers. Commenting on the development, Gregory Loh, Director, LANDbridge product, said, “The company’s focus on cross-border road solutions in Asia is not confined to Southeast Asia or China. DB Schenker is committed to push the envelope further afield and deliver solutions to more companies moving cargo within mainland Asia.”

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