Will pay every penny if required: Junior NTR on non-payment of service tax

HYDERABAD: Popular Telugu actor Junior NTR today said he has not received any fresh communication from authorities on alleged non-payment of service tax involving one of his films, and would pay every single penny if it was required.     

Junior NTR-starrer 'Nannaku Prematho' figured in the CAG report, tabled in Parliament yesterday, with the government auditor pointing out that the actor claimed exemption from payment of service tax of Rs 1.10 crore.     

The report said it was noticed that under an agreement (July 2015) with producer Vibrant Visuals Ltd, London, the artiste received an amount of Rs 7.33 crore for acting in the movie and claimed exemption from payment of service tax of Rs 1.10 crore treating it as export of services.     

The CAG report said an SCN (show-cause notice) is being issued for Rs 1.10 crore.

The actor said he has already replied to the CAG's queries and that no other communication has been received on the matter. "After sending that written reply in 2016, till date, we have not received any further communication regarding this matter, like a show-cause notice or demand, from the authorities," he said in a statement here.     

Junior NTR, grandson of veteran actor and TDP founder N T Rama Rao, added, "In 2016, when CAG officials conducted a review of my Service Tax returns and raised a query, my legal and economic team gave an explanation in writing about the same," he said. He said he would pay "every single penny of the service tax" if it is required from him, adding, he has been a faithful taxpayer for several years now.     

"In the present matter, if it is found by the competent authority that I have to pay the Service Tax, I will pay every single penny as required of me. I am waiting to hear from the authorities regarding the same," he said.