Immediately after the Goods and Services Tax (GST) Department froze his bank accounts alleging non-payment of taxes, Mahesh Babu's PR team hurriedly drafted a press release and shot it off to prominent journalists over email.
The press release said that Mahesh Babu doesn't owe a penny to the tax department and that the news about him is false. Now, one of the reasons why that press release is being discarded by all because there was no quote of Mahesh Babu in it.
Less than 24 hours after releasing the press note, Mahesh Babu backtracked and cleared the total due, confirms Mirchi9.
According to the website, attaching two of his bank accounts, the GST Commissionerate in Hyderabad already recovered 42.96 Lakhs and the actor decided to clear the rest of the amount.
The actor sent a DD of 31,47,994 Rupees, the Balance Amount to the Department through his Auditor. With this, the entire tax dues, penalty, and interest of 73.5 lakh Rupees are cleared.
Mirchi9 reports that this is the amount that was due since 2007-08 as Mahesh reportedly did not pay the service tax on remuneration he got for endorsing several products.
Mahesh Babu approached the Central Excise and Service Tax Tribunal and the High Court later arguing that his services do not come under the Tax Ambit. But he did not get relief there.
Finally, he decided to end the controversy amicably.
Mahesh Babu is currently in Dubai along with his family to celebrate the New Year and was not available for comment.