Mahesh Babu’s accounts in Axis and ICICI banks were frozen by GST commissionerate, in an old case of alleged tax evasion.
In a statement, the officials said that Mahesh Babu has not paid service tax for his remuneration fee that he took for brand endorsements for the period 2007-2008. Rs 18.5 lakhs have been pending since then and the total amount has now become Rs 73.5 lakh with penalty and interest.
“The GST department has attached his bank accounts in Axis Bank and ICICI Bank for an amount of Rs. 73.5 lakhs which includes tax, interest and penalty,” the press release issued by the Hyderabad GST Commissionarate said.
The actor cannot operate the bank accounts until he settles the tax dues with the department. As per the Central Board of Direct Taxes (CBDT) notification no. 12, any services provided by an artist for a remuneration of upto an amount of Rs 1.5 lakh isn’t liable for GST. Only amount exceeding 1.5 lakh, and the artist is liable to pay service tax.