Titan sees 500-cr hit on sales this fiscal
Jewellery and watches major Titan Co expects to take a hit of up to Rs 500 crore this fiscal due to government\'s move to lower the transaction threshold of quoting PAN to Rs 2 lakh from Rs 5 lakh earlier.
New Delhi: Jewellery and watches major Titan Co expects to take a hit of up to Rs 500 crore this fiscal due to government's move to lower the transaction threshold of quoting PAN to Rs 2 lakh from Rs 5 lakh earlier. "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 Managing Director Bhaskar Bhat said.
The company has already taken a hit due to the previous limit at Rs 5 lakh, he added without quantifying the loss. Last month, the company 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 move.
Claiming that the company has not resorted to means to circumvent the rule by breaking up bill, he said: "We are suffering on account of that.
We do not break up bill as one lakh, one lakh and then sell." In December last year, the Finance Ministry had lowered the purchase limit for quoting PAN to Rs 2 lakh per transaction from Rs 5 lakh as part of measures to curb domestic black money generation. In FY 2014-15, Titan Co had reported a revenue of Rs 11,903.21 crore.
