Titan sees Rs. 500 cr hit in FY16 on PAN rule

“We would have of around Rs. 400 crore to Rs. 500 crore effect on our turnover. This would be loss of turnover. This is our estimate,” Titan Co. MD Bhaskar Bhat has been quoted as saying.

Titan Co. expects to take a hit of up to Rs. 500 crore in FY16 due to the Government’s move to lower the transaction threshold of quoting permanent account number (PAN) to Rs. 2 lakh from INR 5 lakh earlier, reports a financial newspaper.

“We would have of around Rs. 400 crore to Rs. 500 crore effect on our turnover. This would be loss of turnover. This is our estimate,” Titan Co. MD Bhaskar Bhat has been quoted as saying.

The company has already taken a hit due to the previous limit at INR 5 lakh, he added.

In December, the Finance Ministry lowered the purchase limit for quoting PAN to Rs. 2 lakh per transaction from INR 5 lakh as part of measures to curb domestic black money.

Last month, Titan Co. had stated that it expected cash sales of jewellery items between Rs. 2 lakh and Rs. 5 lakh to be impacted to some extent after the Government’s move. 

The company has not resorted to means to circumvent the rule by breaking up bill, Bhat said.