Evading tax is a crime and often we have had celebrities calling for a legal mess because of the same. Telugu superstar Mahesh Babu is the recent one to fall in this puddle. As reported by PTI, on Thursday The Goods and Services Tax department expressed that they've frozen bank accounts of the star to recover service tax dues from him. As per a press release issued by the Hyderabad GST Commissionerate, Mahesh Babu was unable to pay service tax for the year 2007-’08 for the payment he rendered as a brand ambassador, for advertising and promoting products.
The press release issued by Hyderabad GST Commissionarate read, "The total tax due from him was Rs 1.85 million or Rs 18.5 lakh. The GST department has attached his bank accounts in Axis Bank and ICICI Bank for an amount of Rs 7.35 million (Rs 73.5 lakh), which includes tax, interest, and penalty. We have attached the bank accounts and started recovering... We have recovered Rs 4.2 million (Rs 42 lakh) from Axis Bank today. Balance, ICICI bank has to pay by on Friday."
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Now in response, the 43-year-old actor, whose bank accounts are frozen and he cannot operate it until the tax dues are settled has issued a statement which reads, "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 a penalty for brand ambassador services rendered in FY 2007-08 which was not taxable service." The actor highlighted a valid point that the brand ambassador services were not taxable as the same was introduced in the statute book only in 2010.
We await more information on the same.