Jewellery and watch maker Titan on Thursday said it expects to lose revenue of Rs 500 crore this fiscal, after the government decided to make PAN cards compulsory for cash purchases above Rs 2 lakh. The limit was Rs 5 lakh earlier, but the Finance Ministry lowered it in December, in an attempt to track large purchases made by those hiding black money.

Bhaskar Bhat, Titan's co-managing director, said, "There might be an effect of around Rs 400 crore to Rs 500 on our turnover. This is our estimate." PTI reported that the company had taken a hit even when the previous limit of Rs 5 lakh was enforced.

Jewellery and watches are often suspected to be goods through which black money is disposed of or converted to white. The government's move to lower its PAN requirement had meant that all high-value household purchases such as expensive gadgets and foreign tour packages, as well as luxury items such as expensive watches and gold jewellery, would come under the scrutiny of tax officials.

Titan, on its part, has said it will not try to circumvent the new rule by breaking up its bills into smaller amounts. In the previous financial year, Titan had reported revenue of Rs 11,903.21 crore, with about 73% coming from jewellery sales, 25% from watches and the remaining from its eyewear and other subsidiary lines.