The GST Commissionerate of Hyderabad issued a press statement that they have attached the bank accounts of Superstar Mahesh Babu claiming Rs 73.5 lakhs towards tax delays, interest and penalty for brand ambassador services rendered in FY 2007-08 which was not a taxable service. Soon the news has been spread across media and web portals. The legal team of Mahesh Babu clarified that the brand ambassador services was brought in the statute by insertion of Section 65(105)(zzzzq) with effect from 1-7-2010.
“Mr Mahesh Babu is a law abiding citizen complying with all fiscal legislations and has no undisputed tax payable. The GST Commissionerate Hyderabad has carried out the attachment without notice when several judicial pronouncements on this issue is in favour of the taxpayer and more so when the dispute is pending before the High Court” said the statement issued on behalf of Mahesh Babu by his legal team.