The Hindu : Andhra Pradesh News : Hair-raising issue for TTD

Online edition of India's National Newspaper
Wednesday, Apr 06, 2005

Andhra Pradesh

Andhra Pradesh

Hair-raising issue for TTD

By Our Special Correspondent

TIRUPATI. April 5. The controversial Value Added Tax (VAT) may become a millstone round the neck of the TTD and may make it cough up at least Rs. 3.5 crores annually towards sales tax on human hair being collected at its tonsuring centre at Tirumala.

On an average daily some 15,000 pilgrims offer their hair to the Lord. At least one-third of them are women and their tufts are commercially most sought-after because they are suitable for making wigs and `savaraalu.'

The TTD conducts public auction of hair periodically. The fact that the TTD floats global tenders and bidders from the world over participate in the auction reflects its commercial value. Before auction the hair stocks are dried, cleaned and sorted out into three categories depending on their length.

Even bits and pieces of hair are not left out and they are taken away by a particular trade which has specialised in producing a solvent extract.

According to sources, though the TTD has been on an average netting not less than Rs. 30 crores annually through the sale of the human hair, it has not been paying any sales tax -- thanks to the exemption granted by successive State Governments.

Exemption bid

Sources in the TTD feel that it may no longer enjoy the exemption under VAT. It is in this context that the TTD authorities are trying to use their clout with the powers that be at the Centre to secure exemption from VAT.

The TTD plans to cite in this connection the exemption from Income-Tax it has been enjoying for quite some time. The TTD's gross income per annum stands at a whopping Rs. 650 crores.

It is also feared that laddu covers may take a hit from VAT, though on a smaller scale.

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