Jr NTR clarifies about the service tax and show cause notice issue

Reports were doing rounds that the actor was being served a notice in connection with Service Tax for one of his films.

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Reports were doing rounds that Jr NTR was served a show cause notice by tax authorities in connection with Service tax for his 2015 film Nannaku Prematho. Reports suggested that there were some issues with the Service tax charged by the actor for the film and is now being served the notice asked to pay that. Jr NTR has now opened up about this issue and released a statement clarifying the issue.

I have acted in the above film in 2015 which was made in the UK by the producer. I was advised by legal and tax experts that any Service (in this case as an actor) rendered outside India for which payment is received in Foreign Exchange, is not taxable for Service Tax in India. Accordingly, I have not collected the service tax from the producer of “Nannaku Prematho”,” read the statement by Jr NTR.

The statement also said, “In 2016 when C&AG officials conducted a review of my Service Tax returns and raised a query, my legal and economic team gave an explanation in writing about the same. After sending that written reply in 2016, till date, we have not received any further communication regarding this mater, like a show cause notice or demand, from the authorities.”

The actor also says the he is a law abiding citizen and if asked by the authorities to pay, will clear all the dues if applicable. “If and when I receive any communication from the authorities, I will respond as per the applicable law. I have been a law abiding citizen and faithful Income tax and Service tax payer for the last several years,” said the statement.


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