Bombay HC Issues Notice To State Govt In Plea Filed By Actress Anushka Sharma Against Sales Tax Order
The Bollywood Actress in her plea has stated that the assessing officer should have mentioned to whom the said performer’s rights were transferred and that he had confused himself about what has been transferred by the Actress to her clients.
The Bombay High Court on Thursday issued notice to the Maharashtra State Government in a plea filed by Bollywood Actress Anushka Sharma challenging the order passed by the assessing officer under the Maharashtra State Value Added Tax.
In her plea, Anushka Sharma has submitted that the assessing officer has erroneously levied sales tax on consideration received for endorsements and awards worth Rs. 10.82 Crore and Rs. 1.48 Crore.
Her plea stated that the assessing officer in its order has stated that receipts of Sharma are not only on account of services but also on the transfer of the performer’s right under the Copyright Act. She has contended that the performer’s rights are not copyrights and they are not capable of being transferred to any other person. Further, even if it is assumed that the performer’s right can be transferred the same attracts NIL Tax as per the Schedules of the Act, the plea stated.
Sharma in her plea has further stated that the creator or producer of the work owns the copyright and any actor in the film produced does not own the copyright. The plea read,
“The petitioner submits that, as the actor does not possess any copyright in the film, the question of transferring/selling the 'copyright' to any other person or to producer does not arise. Therefore, the conclusion drawn by the assessing officer that the appellant has transferred/sold copyrights has no factual and legal base.”
She has prayed before the court to set aside the order of the assessing officer under the Maharashtra Value Added Sales Tax Act which has levied a tax of Rs. 1.2 crore for the assessment year 2012-2013. She has also prayed that till the time of disposal of the petition, the respondent should be directed not to pass any for assessment years starting from 2015 to 2017.
Earlier, in December the actress had filed a plea in the name of her tax consultant which came to be dismissed by the Single Judge Bench of Justice Nitin Jamdar. The court had asked her to file a fresh petition in her own name.
Case Title: Anushka Sharma vs State of Maharashtra & Ors.