Mahesh Babu fell into legal trouble as he evaded the goods and service tax for the year 2007-2008 amounting Rs. 18.5 lakhs. He was the brand ambassador for many products and promoted many brands but failed to pay the tax for the taxable service. The GST department froze his bank accounts to recover an amount of Rs 73.5 lakhs including the interest and penalty. Mahesh’s legal team enunciated about the whole fiasco by releasing a statement.
Here is the attached statement:
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 the penalty for brand ambassador services rendered in FY 2007-08 which was not taxable service. The brand ambassador services were 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 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." We have got to see what the legal proceedings are going to be.