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Logistics sector waits for VAT
One of the biggest hurdles in the path of growth of logistics services in India is the plethora of tax laws which differ from state to state. Octroi or entry tax is considered to be the biggest stumbling block in its progress.
Currently, companies open a warehouse in states to avoid sales tax. Under the circumstances, where distribution is governed more by local tax laws rather than improving the efficiency of distribution channels, logistics as a service will definitely take a backseat. Now industry captains are eagerly waiting for VAT to be introduced in the country. However, the government's decision to postpone its implementation is seen as a major setback. In the absence of uniform tax laws and the non-abolition of octroi nothing dramatic can happen in the logistics sector, industry captains aver. The industry hopes that the government will at least introduce VAT next year. But, abolition of octroi could still be a far cry.
Logistics sector waits for VAT
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