Petrol pumps across the city are yet to start dispensing cash to the public. Most petrol pump owners are not willing to take up the ‘social service’, fearing increased taxation. Those who have applied for the point of sale (PoS) machines are yet to get their hands on them.
The Central government announced on November 17 that petrol pumps could dispense ` 2,000 per debit card. The move was aimed at easing the burden on the 2.20 lakh ATMs across the country.
The initiative is being implemented in Telangana except in Hyderabad, says K Prashant Reddy of the Petroleum Dealers Association, Telangana chapter.
Under the initiative, petrol pump owners are to deposit `1 lakh with banks which will ‘lock’ the amount. The `1 lakh liquid currency provided to dealers would be dispensed to public using a PoS machine.
“Some petrol dealers are hesitant to dispense cash due to tax reasons. If they dispense `1 lakh in cash a day by swiping debit cards, it would mean a turnover of `30 lakh a month. That would be in addition to their regular business turnover and profit made from selling petrol. This will naturally attract a notice from the income tax authorities asking them to pay tax for the total turnover,” explains Prashant.
“But we have assured the dealers that we will sort out any income tax problem that might arise. We are urging them to use the PoS machines as a service to the public,” he adds.
Yet, most petrol pump owners who have applied for the PoS machine are yet to get the machine. “Many applications are still pending with the banks,” says Prashant. According to VVSR Sharma, convener of the United Bank Employees Association, there is a shortage of PoS machines.
The number of requests for the machines has gone up since demonetisaton,” he says. Banks get these machines from manufactures directly and there are not many companies in India that manufacture them, he adds.
Source: TNIE
The Central government announced on November 17 that petrol pumps could dispense ` 2,000 per debit card. The move was aimed at easing the burden on the 2.20 lakh ATMs across the country.
The initiative is being implemented in Telangana except in Hyderabad, says K Prashant Reddy of the Petroleum Dealers Association, Telangana chapter.
Under the initiative, petrol pump owners are to deposit `1 lakh with banks which will ‘lock’ the amount. The `1 lakh liquid currency provided to dealers would be dispensed to public using a PoS machine.
“Some petrol dealers are hesitant to dispense cash due to tax reasons. If they dispense `1 lakh in cash a day by swiping debit cards, it would mean a turnover of `30 lakh a month. That would be in addition to their regular business turnover and profit made from selling petrol. This will naturally attract a notice from the income tax authorities asking them to pay tax for the total turnover,” explains Prashant.
“But we have assured the dealers that we will sort out any income tax problem that might arise. We are urging them to use the PoS machines as a service to the public,” he adds.
Yet, most petrol pump owners who have applied for the PoS machine are yet to get the machine. “Many applications are still pending with the banks,” says Prashant. According to VVSR Sharma, convener of the United Bank Employees Association, there is a shortage of PoS machines.
The number of requests for the machines has gone up since demonetisaton,” he says. Banks get these machines from manufactures directly and there are not many companies in India that manufacture them, he adds.
Source: TNIE
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