Actor Sivakarthikeyan succeeds in getting refund from Income Tax Department

As per the document, the actor’s remuneration of Rs.2 crore was to be paid on or before the signing of the agreement. Another Rs.1 crore was to be paid on or before commencement of the shooting, Rs.7 crore during 70 days of the call sheet at the rate of Rs.1 crore after every 10 days of shooting, and Rs. 2 crore before completion of the dubbing work.

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Further, Rs.2 crore was to be be paid before the audio release of the movie and the final tranche of Rs.1 crore was to be paid before its theatrical release. The producer also agreed to pay the GST at the applicable rates besides paying the remuneration to the actor only after deducting the tax at source (TDS) and remitting this to the I-T Department.

However, in the assessment year 2019-20, a TDS mismatch of Rs.65.50 lakh was found on account of Mr. Gnanavelraja not having remitted the TDS with the Department. Similarly, another TDS mismatch of Rs.1.11 lakh was found in the assessment year 2020-21 on account of the producer not having remitted the amount, the actor complained.

This non-remittance by the producer had resulted in the I-T Department recovering 91.16 lakh from the actor’s bank account in February 2022, he said, and sought a direction for the refund of the money. While the case was pending adjudication, the issue was resolved between the parties with the producer remitting all necessary payments.

Finally, when the case was listed for hearing before Justice Krishnan Ramasamy in December 2023, it was reported that the I-T department had to refund only Rs.12.60 lakh with interest and even this amount had been deposited into the actor’s bank account.

The judge closed the writ petition after recording the submission made by the I-T Department counsel.

Source: The Hindu

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