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Mahesh Babu Releases Clarification After The Attachment Of His Bank Accounts For Alleged Service Tax Evasion

Written By Joel Kurian | Mumbai | Published:

Hack:

  • The Hyderabad GST Commissionerate had on Thursday accused the Telugu superstar of service tax evasion during 2007-08
  • The actor’s legal team stated that the attachment was done without prior notice and added that there were several judicial pronouncements in favour of the taxpayer

Mahesh Babu’s legal team has reacted to the attachment of the actor’s bank accounts over alleged service tax evasion. 

READ: Telugu Actor Mahesh Babu's Bank Accounts Frozen By GST Department Over Service Tax Dues

In a press release, the team stated that the attachment was done without prior notice and added that there were several judicial pronouncements in favour of the taxpayer and that the dispute is pending before the High Court. 

The press statement read, "The GST Commissionerate Hyderabad has attached the bank accounts for a disputed tax demand of Rs 18.5 lakhs claiming Rs 73.5 lakhs towards Tax interest and penalty for brand ambassador services rendered in FY 2007-08 which was not taxable service. 

"The brand ambassador services was brought in the statute by insertion of section 65(105)(zzzzq) with effect from 1-7-2010. The GST Commissionerate Hyderabad has carried out the attachment without notice when several judicial pronouncements on this issue is in favour of the taxpayer and more so when the dispute is pending before the High Court.” 

The Hyderabad GST Commissionerate had on Thursday accused the Telugu superstar of service tax evasion during 2007-08 for the services he provided as brand ambassador, appearance fees and advertisements for promotions of products. 

The department had attached his accounts in ICICI Bank and Axis Bank to recover the dues. The actor won’t be able to operate his bank accounts until the recovery of the dues is completed. 

The officials recovered Rs 42 lakh from the latter and were planning to collect the remaining amount from the former. A senior official had said that action would be taken against the bank if they fail to make the payment.  

The official had also revealed that Mahesh Babu had not succeeded in getting a reprieve from the appellate authority.  

On the professional front, the 43-year-old was last seen in ‘Bharat Ane Nanu’ earlier this year. The movie, directed by Koratala Siva, and also starring Kiara Advani, was a success at the box office. The actor was seen in the role of a chief minister. 

READ: Alia Bhatt Poses With Mahesh Babu's Daughter In New York

Mahesh Babu is currently working on ‘Maharshi’, being helmed by Vamshi Paidipally, also featuring Pooja Hegde, and the movie will release next year.

 

 

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