'I will pay every single penny': Jr NTR on being named in CAG's tax evasion report

The 2016 Telugu film Nannaku Prematho, which starred Jr NTR in the lead role, has come under the scanner. According to a Comptroller and Auditor General (CAG) report, the actor hasn’t payed service tax for the film as he has shown in his records that he received the payment outside India. The CAG also included a Hindi film Ae Dil Hai Mukshil, starring Ranbir Kapoor and Anushka Sharma, in the defaulters’ list. On Saturday, Jr NTR clarified the issue of the unpaid service tax.

“I have acted in the film in 2015 which was made in 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,” said Jr NTR.

He further said that in 2016 too, CAG officials conducted a review of his service tax returns and raised a query. “My legal team gave an explanation in writing about the same. After sending the reply in writing in 2016, we have not received any further communication regarding this matter till date from the authorities. 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. I have been complying with all the applicable laws scrupulously. I have the highest respect for the law,” he said.

The actor further said that he is ready to pay service tax if the authorities ask him to, and said that he was waiting for communication regarding the matter. “If it is found by the competent authority that I have to pay the service tax, I will pay every single penny. I am waiting to hear from the authorities regarding the same,” he concluded.