A row brewing over liquor tax
The two Telugu speaking states which have been locking horns over water and power are now heading for another controversy with regard to clearing of income tax dues pertaining to AP Beverages Corporation to the tune of Rs 1500 crore accumulated since 2010.
Hyderabad: The two Telugu speaking states which have been locking horns over water and power are now heading for another controversy with regard to clearing of income tax dues pertaining to AP Beverages Corporation to the tune of Rs 1500 crore accumulated since 2010.
The income tax department has recently slapped a notice on two depots in Telangana and another two in Andhra Pradesh. But the Telangana State Beverages Corporation Limited (TSBCL) refused to pay the dues and returned the notice saying that TSBCL was a new body and had no IT dues, according to the TSBCL Managing Director. He said the dues belong to APBCL and the AP government should clear them.
Following this, the IT department served notices on APBCL asking it to close down the two depots for not paying Rs 1500 crore on Monday. The corporation shut the depots in Vijayawada and Gudiwada immediately. Managing Director of the corporation Srinivas told The Hans India that the liquor supply to wine shops in Krishna district had been stopped as the depots were locked. With the closure of the depots, the corporation would incur a loss of around Rs 2 crore as turnover per day.
He said the IT department had been insisting that the corporation to clear the dues and also filed a petition about five years ago in the High Court. The case is still pending. The corporation argued that since the APBCL was a state-owned company, there was no need to pay tax to the Union government Following the notice and closure of the two depots on Monday, the corporation immediately approached the state Advocate-General and sought his immediate intervention and find a legal remedy.
By:Patan Afzal Babu