Anushka Sharma strikes High Court over gross sales taxes imposed by Maharashtra govt

On Thursday, January 12, the Bombay High Court petition ordered the Maharashtra authorities to answer to a plea filed by Bollywood actress Anushka Sharma that challenges an order issued in opposition to her by the gross sales tax division for tax restoration for the years 2012-2013 and 2013-2014. The order was issued by the Mazgaon gross sales tax deputy commissioner beneath the Maharashtra Value Added Tax (MVAT) Act.

A bench comprising Justice Nitin M Jamdar and Justice Abhay Ahuja was listening to Anushka Sharma’s plea that the assessing officer had incorrectly levied gross sales tax on the charges she obtained for endorsements and anchoring award capabilities. For 2012-13, the authority levied Rs 1.2 crore in gross sales tax (together with curiosity) on Rs 12.3 crore obtained by Anushka Sharma. Similarly, gross sales tax of Rs 1.6 crore was levied on her for the Rs 17 crore she obtained in 2013-14.

In her plea, the actress additionally requested the courtroom to remain the restoration of the quantity associated to the tax levied within the impugned orders. The petition additionally requested an interim injunction to forestall the evaluation officer from issuing orders for the next interval till 2017.

According to Sharma’s petition, she labored as a performer in movies and at awards exhibits as a part of a three-party settlement along with her agent, Yashraj Films Pvt Ltd, and producers or occasion organizers.

The assessing officer, nevertheless, “erroneously” famous that Sharma had acquired copyright by means of endorsements and anchoring award capabilities, and had bought or transferred it. As a end result, gross sales tax was levied on product endorsements and internet hosting award ceremonies fairly than on movie consideration.

Sharma’s counsel Deepak Bapat, nevertheless, acknowledged that the present’s producers have at all times owned the copyright to the respective movies. He added that as a result of the copyright is owned by the producers,  Anushka couldn’t promote or switch it.

Furthermore, the actress claimed that an actor who has performed a job in a movie can’t be referred to as the movie’s creator or producer, and thus doesn’t personal the movie’s copyrights.

“The performer’s rights are not copyrights and they are not capable of being transferred,” the actress stated.

Notably, Sharma had earlier filed pleas by means of her tax guide Shrikant Velekar final month. However, a bench comprising Justice Jamdar and Gauri Godse disposed of the plea and slammed the actress for submitting the plea by means of her taxation guide as an alternative of submitting it by herself. 

In an order dated 15 December 2022, the bench stated, “There’s no reason shown as to why the petitioner cannot file these petitions on solemn affirmation.”

Following this, Sharma withdrew her plea and filed a recent plea in her personal affirmation. Granting time to answer Sharma’s plea as sought by Additional Government pleader Jyoti Chavan, the courtroom posted the matter for additional listening to on February 6.