Asianet NewsableAsianet Newsable

Anushka Sharma 'liable' to pay taxes for owning 'copyright' on her stage performances

In a recent news update, the globally loved Bollywood actress Anushka Sharma has been summoned by the sales tax department to pay taxes as she owned the copyright for all her stage performances between 2012 and 2016. Read on to know more.

Anushka Sharma 'liable' to pay taxes for 'owning' copyright on her stage performances vma
Author
First Published Mar 29, 2023, 4:05 PM IST

In a recent news update, prominent Bollywood actor Anushka Sharma best known for her films like Bajrangi Bhaijaan, PK, Dil Dhadakne Do, and so on, the first owner on her copyright to her own performances at awards functions or stage shows, is liable to pay sales tax when she received income from them, the Sales Tax department has submitted their petition before the Bombay High Court.

As she has transferred this copyright to the producers of such events for a fee, it was akin to a sale, it said. The primary and apex Income Tax sales department body on Wednesday filed its responses in form of affidavits as their response to four petitions filed by Anushka Sharma.

ALSO READ: Ramadan 2023: 3 delicious vegan delicacies that are must-have during the holy month

It is important enough to note that the award-winning Bollywood actor Anushka Sharma has moved to the court and apparently also is challenging the four orders passed by the deputy commissioner of Sales Tax demanding tax for assessment years between 2012 to 2016 under the Maharashtra Value Added Tax Act, also known as the MVAT Act. Anushka Sharma's point of contention and discussion in the petitions filed by her is that an actor who performs in a film, advertisement, or a stage/TV show cannot be called a creator or producer, and hence she or he does not own a copyright on the same.

In its reply affidavit which got submitted on Wednesday before a division bench of Justices Nitin Jamdar and Abhay Ahuja, the tax authority has challenged this view. The bench said it will hear the matter on Thursday. The submitted legal affidavit clearly mentioned, "Anushka Sharma was a performer under the Copyright Act as copyright is created in her every artistic performance. The petitioner is providing her services and earning income through a contract for services and not through a contract of services (that is, she is not employed by anybody). Therefore, under the Copyright Act, she is the first owner of the copyrights created in her artistic performance."

The legal affidavit document also revealed, "Sharma receives income for her artistic performance from various client companies, and thus along with her artistic performance, the copyright on it also gets transferred to the client, the department said. Under the MVAT Act, copyrights are intangible goods, therefore their transfer for consideration is akin to a sale. Her copyrights get transferred to the client company for commercial purposes and she receives valuable consideration. Hence it is covered under the definition of Sale under the MVAT Act."

ALSO READ: Parineeti Chopra set to marry Raghav Chadha? AAP leader finally breaks his silence

Follow Us:
Download App:
  • android
  • ios