The Madras High Court has given relief to Singer and music composer AR Rahman in the matter of Goods and Services Tax (GST) and Central Excise. On 17 October, GST commissioner accused Rahman of not paying service tax. He was instructed to pay the outstanding service tax of Rs 6.79 crore and a penalty of Rs 6.79 crore from April 2013 to June 2017.

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On Wednesday, High Court Judge Anita Sumant granted an interim stay on the matter in view of the writ petition submitted by AR Rahman. GST and CE (South Chennai) commissioner KM Ravichandran said in his order that according to an investigation by the Directorate General of GST Intelligence (DGGSTI), Rahman was not paying the correct service tax according to his earnings. According to officials, he was earning his money by composing music in films and performing his music in public. Rahman was also earning money by performing live concerts in India and abroad. Officials have said that all these earnings fall under the tax net and Rahman has failed to pay this service tax.

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However, in his submission to the court, Rahman said that the commissioner ordered him with a wrong estimate. While ordering, it was speculated that the producer of a film owns the copyright of the music used in it but actually it is not so. Referring to Section 13 (1) (a) of the Copyright Act of 1957, Rehman stated in his petition that the music composer is the only owner of the songs and background scores given in any other produced films. He said that when a music composer gives his work to a producer through an agreement, the producer can only get the copyright of this musical work. He said that he was paying tax only for the sound recording service because the permanent transfer of copyright does not come under the tax.

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