Dear Friends,

I am involved in BOCW, and we have some logistics companies working for us to transport semi-finished products to various locations. These companies are all registered under the Shops and Establishment Act. However, I believe they also need to be registered under "THE MOTOR VEHICLE ACT". Additionally, I am curious about whether all other acts are applicable to MVC such as CLRA, PAYMENT OF WAGES, Minimum wages, Compensation, Bonus, gratuity, PF, ESI, Group insurance, etc.

Thank you.

From India, Chennai
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Dear Shyam,

Your question is not clear to me. The logistics companies working for you are simply transporting your products at any stage to the locations designated by you. Therefore, this is purely a contract for service. Consequently, it is not your concern to worry about the labor laws that apply to the employees of the logistics companies involved in transporting your goods.

Thank you.

From India, Salem
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Hi Shyam,

In addition to what Mr. Umakanthan has said, I think you mixed up registration under the MV Act with services under GST/IT. There can't be any escape for a goods vehicle to ply on Indian road without a valid RC. I'm sure the vehicles they let you on hire possess RC, fitness, and emission certificates. That's enough.

If the owners of these fleet have more than 10 vehicles, you should examine relevant provisions of GST and TDS so that your goods are not impounded for violations and levy of penalties, compliance of eWaybills, etc. Few points are indicated in the attachment for your ready reference.

From India, Bangalore
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File Type: docx GST ON GOODS CARRYING SERVICE PROVIDER.docx (16.2 KB, 22 views)

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Where is the question of Motor Vehicle Act here. Are they Logistic companies or parcel services or Courier companies? Have you entered any Agreement with those companies for transporting your goods.

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Thanks for your kind inputs. Sorry for not being active.

The vendor is transporting manufactured concrete slabs (20tn) to different locations from the factory to nearby locations in and around a radius of 30km. The company has made a contract with the transport company to provide trailers to shift them to the locations.

Kindly suggest which license the transport company needs to avail, and what documents should we maintain as a PE.

From India, Chennai
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Dear Shyam,

Since the contract between the transport company and yours is only an independent contract for service involving the transport of your goods to the desired locations, the CLRA Act of 1970 has no application in this business transaction.

From India, Salem
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