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Truckers face compulsory registration

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Bijith R New Delhi
Last Updated : Jan 29 2013 | 2:16 AM IST

In a move which is expected to consolidate the commercial road transportation sector, all goods transport agencies (GTAs) will have to mandatorily get themselves registered with the respective state transport authorities (STAs) where their head offices are located.

The Centre is finalising the Carriage by Road Rules for implementing the Carriage by Road Act, which was passed in Parliament last year. The rules will be ready and notified by the year-end.

Experts say the rules, which impose certain conditions for registration, will force the closure of over one-third of the GTAs leading to consolidation of business.

Currently, there are 275,000 GTAs across the country, of which 99 per cent are in the unorganised sector and are virtually one-man businesses. The legislation is meant to ensure that only serious, reasonably sized businesses, which operate in a transparent manner, remain in this business.

The minimum requirement for registration include positive net worth in the preceding three financial years, ownership of minimum one truck by the GTA and liability cover from an insurance company for the risk involved in the goods transportation, among others.

Moreover, these agencies will have to make regular notes and file a half-yearly return of the consignment carried by them.

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Since majority of these transport agencies do not maintain any proper consignment note and books of account, experts feel the new rules will bring in more transparency and consolidation in the logistical industry.

“The rule is basically meant to bring in more transparency and do away with certain fly by night operators. In the short term, it will result in little discomfort for some players. However, in the long run, these rules will help in consolidation and standardisation of the whole logistical services in the country,” said Vineet Kanaujia, general manager (marketing), Safexpress, a leading logistical company.

“This is a major facilitative step towards making India a global manufacturing hub which requires transparency in the way our logistical services are carried out,” said S P Singh, senior fellow, Indian Foundation of Transport Research & Training.

The rules also make it mandatory for the consignor (who avails of the services of the GTA) to fill in the forwarding note in which he has to declare the quantity and features of the cargo. This will help the central and state governments to collect excise duty, VAT and other local taxes since half the parcel and general cargo moved through the roadways do not carry any proper invoice.

This will also help the Department of Road Transport and Highways compile key data on the quantities and types of goods carried through roadways.

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First Published: Sep 03 2008 | 12:00 AM IST

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