HC asks Anushka Sharma to challenge VAT notices before appellate authority

The Bombay high court on Thursday disposed of actor Anushka Sharma’s petition challenging the sales tax office’s notices, which asked her to clear the VAT dues for 2012-13 and 2013-14, and directed her to approach the appellate authority as there was a need for adjudication of factual aspects

The Bombay high court on Thursday disposed of actor Anushka Sharma’s petition challenging the sales tax office’s notices, which asked her to clear the VAT dues for 2012-13 and 2013-14, and directed her to approach the appellate authority as there was a need for adjudication of factual aspects.

Indian cricketer Virat Kohli (L) and his wife Anushka Sharma pose during the 'Indian Sports Honours' in Mumbai on March 23, 2023. (Photo by SUJIT JAISWAL / AFP) (AFP)

Advocate Deepak Bapat, appearing for the actor, told a division bench of justice Nitin Jamdar and justice Abhay Ahuja that the fees she had received in those two financial years for her artistic performances constituted services and she had no copyright over the content produced by the agent company.

The joint sales tax commissioner, however, construed her performances to be her copyright and asked her to pay ₹1.2 crore in VAT on the ₹12.3 crore she had received in 2012-13 and ₹1.6 crore in tax on the ₹17 crore she had got in 2013-14 and to also clear the dues for the next two years, Bapat said.

The commissioner’s affidavit claimed that as the copyright which Sharma had was transferred to a company for a consideration, she was liable to pay VAT.

After hearing the submissions, the bench said the commissioner may have given a wider meaning to the words copyright and performers’ rights and as it was a disputed question of fact, an enquiry was required. The bench asked the actor to consider the alternative remedy available to her - to approach the appellate authority.

“After arguments for some time, the petitioner says she will avail the alternative remedy provided under the statute. All contentions are kept open. Appeal to be filed within two weeks,” the HC said.