Katrina Kaif's case in Service Tax rules

Katrina Kaif's case in Service Tax rules

Katrina Kaif's Service Tax worries

The Tax authorities had demanded payment of Rs. 2.79 crore and interest and penalyty of Rs. 34 lakhs as Service Tax payment dues from leading Bollywood actress, Katrina Kaif. The Indirect Taxes Appellate Tribunal has made a ruling in favour of the leading lady. The main points of discourse in this case are:

Katrina Kaif's agent Matrix India Entertainment Consultants had been entrusted the task of collecting payments and making service tax payments on her behalf. The agent had made payment of Service Tax albeit under the wrong head of advertising services instaed of "business auxiliary services". Contesting the claim of Tax department, the counelf of Katrina Kaif argued that the payment of Service Tax had been made, even though under wrong head, and so she is not liable for payment of additional tax and penalty charges.

It makes it clear that an agent is allowed to make payment of behalf of a principal and the prinicipal gets due credit of the same.