‘Prince’s Treasury Hit’: Tollywood Star Mahesh Babu’s Bank Accounts Seized Over Non Payment Of GST

Telugu cinema superstar, Mahesh Babu’s two bank accounts have been seized by the Hyderabad’s GST commissionerate on Thursday (27 December) due to unpaid tax dues, reports The New Indian Express.

The service tax dues date back to 2007-08 and amount to Rs 73.5 lakh, which includes tax evaded amounts, penalties as well as interest. The GST commissionerate has seized his Axis and ICICI bank accounts under Section 87 of Finance Act 1994.

The 43-year old star argued that the money he got as compensation was not taxable since they were not for the services given by him but for his accommodation, airfare, etc.

Officials at the GST commissionerate, Hyderabad, say that Babu had failed to pay Rs.18.5 lakh service tax back in 2007-08. Apart from the original sum of 37 lakh, the interest has accrued to Rs 36 lakh. The officials have recovered Rs 42.9 lakh from the Axis and ICICI bank account. Mahesh's ICICI account has a balance of Rs.1 crore, from which, the GST officials say that the amount due to the government would be debited, under section 74 of the Finance Act 1994. “If the bank fails to credit the required sum to government by Friday, we will take action," says an official.

Mahesh Babu, who received a show-cause notice in 2010, challenged it in the Central Excise Service Tax Appellate Tribunal but lost the case. Later, he filed a petition in Hyderabad High Court, where it upheld the tribunal's order.