Registration must for all cos involved in goods transportation

Our Bureau New Delhi | Updated on March 05, 2011 Published on March 05, 2011


All companies engaged in the business of road transportation of goods, including intermediaries like booking agents, will have to mandatorily register as ‘common carriers' soon with the Government.

Additionally, they will have to file quarterly returns with the State transport authorities, stating the details about freight charges and goods carried.

This follows the Ministry of Road Transport and Highways notifying the rules under Carriage by Road Act, 2007, with effect from March 1, as confirmed by a Ministry source. If the common carriers don't adhere to the rules, they would be penalised.

The move will bring in wide-ranging reforms in the road transportation sector by mandating registration for all companies involved in transportation including intermediaries, and filing of goods forwarding notes between transporters and customers.

“With the Carriage by Road Act getting operational, majority of transactions in the commercial road transport sector will become transparent. This will help in the rollout of goods and services tax (GST) regime. However, we need to study the changes, if any, from the draft notification to comment on the exact impact,” Mr SP Singh, Senior Fellow, Indian Foundation of Transport Research and Training, a research body, told Business Line.

The Act also proposes penalties for transport agents in case of overloading. However, the exact level of penalty that the Road Transport Ministry has finally allowed through the rules is not yet clear.

“There are marginal changes from the draft notification on which comments were invited on June 15, 2009. They relate to penalty provisions,” said the Ministry source.

The Act — aiming to bring in reforms in unorganised commercial road transport sector — was notified way back on October 1, 2007. But, it had not yet been operationalised because rules under the Act were not been notified.

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Published on March 05, 2011
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