With Income Tax department serving a notice seeking dues of Rs15 crore from the Beverages Corporations of Andhra Pradesh and Telangana and sealing 19 liquor depots across the two States, the tipplers were in for a tough time as liquor shops and bars have run out of certain brands.
I-T Department swung into action as the two corporations had failed to clear the tax dues till 2012-13. Sources in the department said that with the bifurcation of Andhra Pradesh last year, both the corporations were passing the bucks to each other. Sources said that if interest on the dues was added the two corporations owe the department a whopping Rs 9,000 crore for a period of ten years.
Unable to make any headway and recovering money, the department cracked the whip and issued orders sealing 19 depots supplying liquor to the retail traders. The depots sealed include 17 in Telangana, mostly in Greater Hyderabad and adjoining Ranga Reddy District and two in Andhra Pradesh.
I-T department says that Andhra Pradesh Beverages Corporation ltd., which controlled the whole sale liquor business in the united Andhra Pradesh State since 2005, has been evading the tax on the ground that it was a Government body. “But as per the Income Tax Act, the corporation will have to pay the tax and clear all the arrears”, a department official clarified.
After bifurcation of the State, the corporation was also divided and now officials were blaming each other. While Telangana officials argue that the tax notice deals with the business, which transacted in Andhra region, the AP corporation should pay the tax while the AP officials say as the corporation was headquartered in Hyderabad Telangana corporation should pay the taxes.
Caught in the middle the retail dealers and consumers were finding themselves in a piquant situation. “It is for the Government to resolve the issue with the I-T department and restore the supply from the depots”, said wine dealers association president Venkateshwara Rao.