By Express News Service
HYDERABAD: The Hyderabad GST Commissionerate on Saturday recovered Rs 31.47 lakh from actor Mahesh Babu’s ICICI Bank account in Jubilee Hills branch. The account with Rs 1 crore balance was frozen by the GST officials on Thursday and with the bank crediting the due amount to government treasury account, Mahesh Babu is cleared of all dues and is now free to use his two bank accounts that were attached by GST officials.
The officials have recovered Rs 42.9 lakh from the actor’s Axis Bank account on Thursday itself.
The actor’s bank accounts in Axis Bank and ICICI Bank were attached by officials in connection with a service tax evasion case of 2007-08. He had not paid a tax amount of Rs 18.5 lakh which over the years along with penalty and interest came up to Rs 73.5 lakh. As he refused to pay up even after an order from the Central Excise Service Tax Appellate Tribunal in June 2018 and approached the court in September 2018 for a stay and relief, the GST Commissionerate went ahead with the recovery of the tax dues under Section 87 of the Finance Act 1994.
“Taxable Service means any service provided or to be provided to a client by any person in relation to business auxiliary service. Under Section 65 (105) of the Finance Act, 1994, notice was issued to the actor,” said an official. The 43-year-old actor’s contention for past 10 years was that the money he received as compensation was not taxable as they were not for services provided by him, but towards his accommodation, airfare and other expenses.
Source: The New Indian Express