Taxes Relevant to

Transportation –
Opportunities &
Challenges
Presented By :-
Chetan Kotyalkar (2009B61)
Nihal Mehendale (2009B63)
Modes Of Transport

 Road
 Rail
 Water
 Air
 Pipeline
Current Indirect Tax Regime
 Domestic Manufacturing & Consumption
 Excise Duty
Central Sales Tax – Inter State
 Value Added Tax – Intra State
 Octroi
 Entry Tax
 Purchase Tax
 Fuel Tax
 Service Tax
Current Indirect Tax regime
(Cont.)
 Exports
 Export Duty (Instead of Excise & VAT / CST)

 Imports
 Basic Duty
 Countervailing Duty
 Anti-Dumping Duty
 Education Cess
Taxes Defined
Excise Duty
 On goods manufactured in India
 To be consumed at home
 Applicable on “manufacturing”
 Paid before being “removed”
 Input Credit can be availed of
Taxes Defined
Central Sales Tax (Input Credit cannot be availed)
 For Inter-state movement of goods
 Paid by original producers
 Origin based tax
Value Added Tax (Input Credit can be availed)
 For Intra-state movement of goods
 Paid by original producers
 Origin based tax
Taxes Defined….
Octroi
 Collected by local bodies when goods enter the
controlling area of the body. Rates vary
Purchase Tax
 Imposed on buyer rather than seller
 Implemented by some State government
 Goods are not resold in the State
 Ex. Tax on FCI by Punjab
Taxes Defined….
Fuel Tax
 Imposed on Fuel for transportation purposes
 Not on fuel for heating oil in households etc.

Service Tax
 Imposed on the buyer of services
 Applicable to transportation as a service
Expected Indirect Tax Regime
Goods & Services Tax (GST)
 Central GST
 Central Excise, Additional excise, Countervailing
duty, Service Tax, Surcharges, Cesses

 State GST
 VAT, Entertainment tax, luxury tax, state
surcharges, entry tax

 Integrated GST

* Taxes by local bodies not included in the GST

GST
Salient Features
 Bring about a uniform tax system across the
country
 Single Tax for all goods and services
 Consumption based tax
 Method to provide Input Tax Credit on
Customs Duty & CST
 Reduce tax per purchase unit but increase the
tax base
Opportunities & Challenges
 Change in Constitution of India
 Change in “taxable events”
 Compressing Supply Chains
 Interstate v/s Intra state supplies
 Direct Sales v/s Stock transfers
 Manufacturing / Service / Warehousing Locations
Thank You