BackNew PAN rule could hit Tanishq, says Titan
A new rule that makes permanent account number mandatory for all transactions above Rs2 lakh likely to impact the Tanishq business
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Bengaluru: Jewellery and watchmaker Titan Co. Ltd on Thursday said its Tanishq jewellery business could be affected by a new rule that makes permanent account number (PAN) mandatory for all transactions above Rs2 lakh.
Cash transactions of more than Rs2 lakh are below 10% of revenue at the jewellery division, Titan said in a BSE filing.
The tax department on Tuesday said that from January, PAN will be mandatory for sales and purchases of goods and services above Rs2 lakh across all modes of payment. The move aims to curb circulation of black money. As of now, a jewellery customer needs to produce PAN only if the purchase is over Rs5 lakh.
The revised threshold could potentially affect sales of the jewellery division for cash sales of individual products costing Rs2-5 lakh, Titan added.
The retailer that operates 180 Tanishq stores and 33 Gold Plus stores, however, said it could not immediately estimate what share of revenue from these cash transactions will be lost.
The company said the impact on its gold harvest scheme will be minimal as the average size of such transactions is well below Rs2 lakh.
PAN is already mandatory for almost all financial sector transactions, car purchases and immovable property above a certain limit.
On Thursday, shares of Titan Co. Ltd traded at Rs353.90, down 0.20%, apiece on the BSE, while the benchmark Sensex ended the day 309.41 points higher at 25,803.78.
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