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Synopsis

The Joint Commissioner of Sales Tax in Mumbai has stated in an affidavit submitted before the Bombay High Court that Anushka Sharma, an actress and producer, is the first owner of the copyright in every artistic performance for which she receives consideration.

“Anushka Sharma is first owner of a copyright created in every artistic performance. She is artist entitled to copyright in every artistic performance. As per various tri-partite agreements for services provided by Anushka Sharma, along with her artistic performance the copyright gets transferred and used by her client company for which she is receiving valuable consideration” the reply stated.

This statement was made in response to a petition filed by Sharma challenging the orders passed by the Deputy Commissioner of Sales Tax at Mazgaon, Mumbai that raised dues for assessment years 2012-13 and 2013-14 under the Maharashtra Value Added Tax (MVAT) Act. The Commissioner has prayed before the high court to dismiss Sharma's petition.

The reply further stated that Sharma received income from artistic performances from the client’s company.

“She receives income for her artistic performance from the client company as per written terms and conditions of tripartite agreement for specific period. Her artistic performance is video recorded and used by client company for commercial purposes like advertisements, etc. along with her artistic performance the copyright involved in her performance also get transferred to such company,” the reply read.

The affidavit filed by the Joint Commissioner of Sales Tax sought for the petitions to be dismissed with cost, stating that Sharma cannot directly approach the high court as the MVAT Act provides for a complete machinery with a hierarchy in appeals and provision for review.

Anushka Sharma in her plea stated that the assessing officer in his 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 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, Sharma's plea stated.

Sharma in her plea further asserted 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."

Case Title: Anushka Sharma vs State of Maharashtra & Ors.