Yesterday, news appeared that Tollywood superstar Mahesh Babu’s bank accounts were seized by the Central Board of Direct Taxes authorities for not paying GST linked to brand endorsements during the year 2007-2008. Reports suggested that, the GST department of the Board has frozen two bank accounts of Mahesh Babu for an amount of Rs 73.5 lakh in link with these tax dues which includes penalties and interests levied on the taxes which were to be paid by the famous actor.
Worth mention here the above mentioned two accounts held by the actor in nationalized banks have been frozen by authorities of the tax department on Thursday in Hyderabad. The actor's legal team has lastly responded to the accusation.
According to Bollywoodlife.com Mahesh Babu's legal team sends out a statement asserting, "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."