The Bombay High Court on Thursday issued notice to the Sales Tax department on pleas by Bollywood actor Anushka Sharma challenging orders passed by the department raising dues for four different assessment years.
A division bench of Justices Nitin Jamdar and Abhay Ahuja asked the sales tax department to file its reply by February 6.
Ms Sharma has filed four petitions herself challenging notices issued by the sales tax department over assessments for four years. On Thursday, two petitions were listed for hearing in which the notices have been issued, said government pleader Jyoti Chavan.
She has challenged orders passed by the deputy commissioner of sales tax, Mazgaon, raising dues for 2012-13, 2013-14, 2014-15 and 2015-16 assessment years under The Maharashtra Value Added Tax Act.
On March 31, 2021, order was issued notice under the MVAT Act raising a total demand of Rs 1,23,13,446, which included sales tax of Rs 61,56,733 and interest of Rs 61,56,733 for 2012-2013 assessment year.
“The only reason for the aforesaid demand is that the assessing officer levied sales tax on the services rendered by the petitioner against a consideration of Rs 12,31,34,650,” read one of her pleas.
Her petitions said she had performed in films and also at awards functions as per a tri-party agreement with her agent Yashraj Films Pvt Ltd and producers/event organisers. The assessing officer levied sales tax not on consideration received for films but for endorsement of products and for anchoring at award functions.
Even for 2013-14, demand of Rs 1.6 crore was raised on nearly Rs 17 crore consideration. Her petitions said there is no provision to file an appeal unless 10% of the disputed tax is paid.
Ms Sharma’s petition states that the assessing officer erroneously held that by endorsing products and remaining present and anchoring award functions, she acquired copyrights which are goods of intangible nature and sold/transferred the copyrights. Therefore, the consideration is liable for 5% tax.
However, she has contended that copyrights of videos always remain with the producer who is the owner of it. "Performer's rights are not copyrights and performer's rights are not capable of being transferred to any other person,'' adds her petition.
Earlier, in December 2022, the HC was irked as the actor had filed petitions through a taxation consultant, Shrikant Velekar. "There is no reason shown as to why the petitioner cannot file these petitions on solemn affirmation,'' the court had said.
The judges expressed disapproval saying they had never heard of or seen petitions filed through tax consultants. The pleas were later withdrawn.
