Titan Co faces 500 crore loss due to new PAN norm

Confirming the fear of jewellery trade bodies, Titan, one of the major players in jewellery industry in India, has expressed its apprehensions that it would take at least a hit of 400 to 500 crores this year due to new government rules. Bhaskar Bhat told PTI that new norms would have devastating effect on the company’s business, as even the earlier limit of Rs 5 lakh was unhelpful for the business. 

The co managing director of Titan further pointed out that the company was not resorting to means of circumventing the rule by breaking up bill. The suffering of the company has become more due to that as we do not break up bill as one lakh, one lakh and then sell.

The trade bodies like GJF, etc, have already expressed their reservations against the new PAN rule that makes it mandatory to quote the number beyond the purchase of Rs 2 lakhs. In fact, they have also been holding consultations with ministry officials in this regard to urge to raise the limit to Rs 10 lakhs. 

It may be recalled that in December 2015, 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. But industry bodies fear that it will only drive the trade towards unorganized sector and increase the cases of smuggling.