Courier body for Saurashtra, Kutch set up

Courier service providers in the Saurashtra and Kutch regions have formed an association to present their views before the higher authorities.

The body will be called the Saurashtra and Kutch Courier's Association.

For the association, the most pressing problem is of the service tax imposed by the Central government on this business.

Earlier, there was no tax on courier services. Then, a service tax of 5 per cent was imposed, which was later raised to 8 per cent.

In the recent Budget, the tax has been hiked to 10 per cent.

"The courier industry is at present under heavy economical depression, facing cut-throat competition and has a very narrow profit margin. Our operating expenses are also shooting up and the imposition of taxes will hinder the growth of this industry," said Jitubhai Vyas, spokesman of the association.

"The association is not formed to work against the government. Its only motive is to represent the problems concerned with the courier business," he added.

The Saurashtra-Kutch Couriers Association may later extend to form an all-Gujarat association and, if necessary, join hands with the All India Couriers Association, Vyas said.

At the primary stage, the association will hold a meeting of its members and forward its complaints to help solve the problem of service tax imposition.

"The courier service is considered to be the inseparable part of any industry. Most leading courier services have their branches in almost every towns in India and provide prompt services in every part of the country," said Vyas.

"We are earning our bread and butter through the courier service with franchise of a courier company but due to the tax burden, I prefer to divert from this business," said Mahesh Jani connected with the courier service.

There are 83 courier's services actively operating in the Saurashtra and Kutch areas. These give employment to more then 3000 people in this region.