Important clarification on Mahesh Babu’s income tax controversy

Tollywood superstar Mahesh Babu has issued a clarification in the ongoing income tax controversy, where charges were leveled against him for not paying taxes properly.

In an official statement, Mahesh Babu said, “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 brand ambassador services was brought in the statute by insertion of section 65(105) with effect from 1-7-2010. The GST Commissionerate Hyderabad has carried out the attachment without notice when several judicial pronouncements on this issue are in favor of the taxpayer and more so when the dispute is pending before the High Court. Mr. Mahesh Babu is a law-abiding citizen complying with all fiscal legislation and has no undisputed tax payable.”