Anushka Sharma has filed a petition in the Bombay High Court disputing two orders issued by the deputy commissioner of Sales Tax raising dues under the Maharashtra Value Added Tax Act for the 2012-13 and 2013-14 assessment years. A division bench of Justices Nitin Jamdar and Abhay Ahuja asked the sales tax department to respond to her petitions. It scheduled a hearing for February 6.
Sharma has asked the court to vacate and set aside the Sales Tax Department's orders. She has petitioned for four evaluation years: 2012-13, 2013-14, 2014-15, and 2015-16.
The actor filed the applications last week after the HC refused to hear a plea filed by Sharma's taxes consultant Shrikant Velekar. The plea challenged the Sales Tax department rulings in December 2022. The HC then stated that there was no reason why the affected individual (Anushka) couldn't file the petitions herself. According to her petitions, Sharma worked as a performer in films and at award ceremonies. This is part of a tri-party agreement with her agent, Yashraj Films Pvt Ltd, and producers/event organizers.
According to the petitions, the assessing officer assessed sales tax, not on film consideration. The petition alleges the focus is on commercial endorsements. And anchoring at award celebrations, it claims that Sharma had transferred her performer's rights.
The sales tax demand, including interest, was 1.2 crore on a 12.3 crore value in 2012-13. And it is 1.6 crore on a nearly 17 crore consideration in 2013-14. The orders are from the sales tax department between 2021 and 2022. According to the actor's petitions, there is no provision for filing an appeal with the appellate body until 10% of the disputed tax is paid.
According to the petitions, the assessing officer the actor has gained copyright for her work. The petitioners argued that the copyrights to videos are always retained by the producer, who is the owner of the same.
"Unless it is established that there is sale of goods (tangible or intangible), sales tax cannot be levied," the pleas said. Sharma claims that an actor who has played a role in a film cannot be labeled the film's originator or producer. And hence does not own the film's copyrights.
"The petitioner submits that as an actor does not possess any copyright in the film. The question of transferring/selling the same to any other person or producer does not arise," the petitions said. According to the Sales Tax Department, Sharma has transferred her performer's rights. But it should state to whom she has done so, according to the petitions.
