Govt yet to decide on TSBCL merger

HYDERABAD: With the income tax arrears’ issue still hanging like an albatross around its neck, the Telangana government is toying with the idea of either allowing private wholesale depots or converting the Telangana State Beverages Corporation Limited (TSBCL) into a government entity.
Presently, TSBCL plays the role of a mediator between distilleries and retail outlets across Telangana by collecting various taxes - excise, sales, VAT, turnover, privilege, margin money - on liquor sale in the state.
In the backdrop of APBCL depots sealed by the I-T department for failure to pay arrears, the Andhra Pradesh government has started selling liquor directly to retail outlets using other depots by merging it with the excise department.
Prior to TSBCL getting a stay from the high court on the I-T department's action of seizing a few depots some days ago, officials held discussions about how to address the issue, at least, for future requirements. During the discussions, two options were seriously considered - either allow private wholesale depots or amalgamate TSBCL with the excise department.
In the first option, liquor manufactures would establish their own depots and retailers could lift stock directly from the depots of breweries. Incidentally, a similar system existed till 1994, but it was scrapped after large-scale evasion of taxes by manufactures came to light. With the government mulling bringing in the old system, TSBCL employees were unnerved by the move and have even written a letter to chief minister K Chandrasekhar Rao opposing it.
TSBCL employees, staring at an uncertain future, said in the letter that the government cannot avoid liabilities or seek exemption from court. “In respect of the existing liability of income-tax as per section 68 of the AP Reorganisation Act, 2014, the liabilities of the corporations and companies referred in sub-section 1 shall be apportioned between the successor states in the manner provided in section 53 of the said Act. So, it is the liability of both states to pay income tax whether the trade is carried out by the government department or corporations unless it is settled with the Government of India or judiciary,'' TSBCL employees’ union general secretary N Rajamouli said in the letter.
Rajamouli said that the government in its effort to find alternatives like taking over wholesale trade without any assured security and protection of 143 TSBCL employees “is not appropriate”. TSBCL managing director Nadeem Mohammed said that he has no information about the proposal.