The Kerala State Beverages Corporation (Bevco) stands to gain ₹1,150 crore in refunds from the Income Tax department after solving long-standing tax related issues, Excise Minister M.B. Rajesh has said.
According to a press release from the Minister’s office, the interventions of the Bevco officials led by Chairman and Managing Director Yogesh Gupta helped the Corporation in the recovery of the huge amount.
In 2019, the Income Tax department had collected ₹1,015 crore as tax from the corporation, based on calculations for the period from 2014-15 to 2018-19. Out of this, ₹668 crore was collected by attaching the bank accounts of Bevco. The Corporation had to provide an additional ₹347 crore to unfreeze the bank accounts and ease its business processes.
The Income Tax department’s action had created a huge crisis for the Bevco, leading it to borrow from various banks to ensure liquidity for its daily functioning. The situation also led to a delay in the payment of taxes due as per law.
The Income Tax department had taken such a drastic step from the standpoint that turnover tax and surcharge cannot be considered as expenses and should be considered as income. The Bevco waged a legal battle in the Supreme Court over the Income Tax demand for the years 2014-15 and 2015-16. The SC directed the department to consider the Bevco’s demand for taking into account the surcharge and turnover tax as expenses for these two years.
According to this press release, the Bevco also continued its efforts to release the amount that the department had collected from it. It requested the department to take into account the new financial reforms of the corporation as well as the nature of financial transactions. Following these interventions, the Income Tax Commissioner directed for the release of an amount of ₹748 crore, out of which ₹344 crore has already been received. In addition, steps have also been taken to credit an interest amount of ₹400 crore.
Toddy shop workers
Mr. Rajesh said financial assistance would be provided as part of Onam for unemployed toddy tappers and toddy shop workers. An amount of ₹2,500 each will be provided for 563 unemployed toddy tappers and ₹2,000 for 331 toddy shop workers.
The Excise department and the Bevco are jointly providing the assistance. The Excise department will verify the identity of the workers eligible for financial assistance in connection with the Kerala Toddy Workers Welfare Fund Board.
