Telugu superstar Mahesh Babu has trapped himself in problem with Hyderbad’s Goods and Services Tax department. As per reports in Deccan Chronicle, the actor had been unsuccessful to pay service tax of Rs 18.5 lakh, back in 2007-08. Now, post 11 years of interest and penalty, the amount has climbed up to a whopping Rs 73.5 lakh and the tax department has cloacked two of Mahesh Babu’s bank accounts to retrieve the sum total.
The report also suggested that the Telugu superstar, who was last seen in the blockbuster film Bharat Ane Nenu, had come in an advertising campaign and was paid bomb news But the actor failed to pay taxes on the humongous sum, in spite of being intimated by the tax department. Thus on Thursday, Hyderabad’s GST department seized his bank accounts in Axis Bank and ICICI Bank.
According to the Central Board of Direct Taxes (CBDT) notification no. 12, any services offered by an artist for a remuneration of upto an amount of Rs 1.5 lakh isn’t legally responsible for GST. Only amount exceeding 1.5 lakh, and the artist is legally responsible to pay service tax. While it is indistinct, exactly how much Mahesh Babu was paid for his endorsement, but it is clear that it was a big amount since the service tax itself was Rs 18.5 lakh.