Telugu actor Mahesh Babu's bank accounts frozen by GST department over service tax dues

The Goods and Services Tax department on Thursday said it has attached the bank accounts of Telugu superstar Mahesh Babu to recover service tax dues from him. 

According to a press release issued by the Hyderabad GST Commissionarate, Mahesh Babu has not paid the Service Tax during 2007-08 for the taxable services he rendered as brand ambassador, appearance money and advertising for promotion of products among others.

Read: After Abusive Messages, Comedian Manoj Apologises To Mahesh Babu Fans

"The total tax due from him was Rs 1.85 million, the GST department has attached his bank accounts in Axis Bank and ICICI Bank for an amount of Rs 7.35 million, which includes tax, interest and penalty," it said.

When contacted, a senior official of the GST department said Mahesh Babu failed to get any reprieve from any appellate authority on this issue. 

"We have attached the bank accounts and started recovering... We have recovered Rs 4.2 million from Axis Bank today. Balance, ICICI bank has to pay by tomorrow."

Read: Is Mahesh Babu Ragging His 'Maharshi' Co-Star Allari Naresh? Watch This Video

Otherwise, action will be taken against ICICI Bank. Under section 74 of the Finance Act 1994, the bank is responsible for payment, sources told PTI.

They further said the 43-year-old actor cannot operate the bank accounts until he settles the tax dues with the department. 

At present, the popular actor is busy with shooting for 'Maharshi'. Directed by Vamsi Paidipally, Maharshi is bankrolled jointly by Dil Raju, Ashwini Dutt and PVP. It is a high budget project with a major portion of it being shot in the United States. The film is about three friends played by Mahesh Babu, Allari Naresh and Pooja Hegde. It will also have veteran actor Jayapradha playing a pivotal role.

Being his 25th film, Maharshi is a very important project in Mahesh Babu’s career. Originally planned as a Sankranthi release, Maharshi will now hit the marquee on April 9 next year.   

Read: Mahesh Babu's 'Maharshi' To Clash With Chiranjeevi's 'Sye Raa Narasimha Reddy'?

Soon after he is done with Maharshi, the star will be joining hands with director Sukumar for a new project.