Tollywood superstar Jr NTR gives clarification on tax evasion charges

Tollywood star Nandamuri Taraka Rama Rao Jr., who is the grandson of legendary actor and former chief minister of Andhra Pradesh N T Ramarao (NTR), today clarified on the allegation of Rs 1.10 crore tax evasion and reports of receiving notice from the Union finance ministry.

It is said that the actor, popularly called as Jr NTR, received a remuneration of Rs 7.33 crore for his movie "Nannaku Prematho". The tax deductible for that amount was Rs 1.10 crore. However, Jr NTR claimed tax exemption on the grounds of "export of services" as most part of the movie was shot in London.

In an statement Jr. NTR said, "I have acted in the above film in 2015 which was made in the UK by the producer. I was advised by legal and tax experts that any service (in this case as an actor) rendered outside India for which payment is received in foreign exchange , is not taxable for service tax in India . Accordingly, I have not collected the service tax from the producer of "Nannaku Prematho".

He further 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. 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.''

Junior NTR also said that he is a law abiding citizen and a faithful tax payer, "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.''

In his film career, 34-year-old Jr. NTR has worked in twenty-six films and has won several awards including state award, Filmfare Best Telugu Actor Award and CineMAA Awards.

The popular actor is also highly demanded in advertising world and is the brand ambassador of Malabar Gold, Himani Navratna Hair Oil and Zandu Balm in the twin Telugu State of Andhra Pradesh and Telangana.

He was ranked 27th in Forbes India Celebrity 100 list in 2012 with an annual income of Rs 190 million and 55th in 2016 with an annual income of Rs 360 million.

Jr. NTR, who is nephew- in-law of Andhra Pradesh Chief Minister N Chandrababu Naidu, is also involved in politics and is currently an active member of his paternal grandfather's political party, the Telugu Desam Party which is running the government in Andhra Pradesh.

ALSO READ:

I-T raids: I have not violated the law, says Shivakumar

Posting photos of new car, fancy dinner on Facebook? Income Tax dept is watching