AR Rahman gets a Madras High court issued a notice, based on an appeal filed by the Income Tax department. The IT department stated that AR Rahman had evaded tax by allegedly transferring his remuneration of Rs 3.47 crore to his charitable trust. The IT department has found a divergence in Rahman’s tax filing for the year 2011-12. A division bench of Justice TS Sivagnanam and Justice V Bhavani Subbaroyan had sent the notice to composer AR Rahman.
The huge sum was his salary for composing ringtones for a UK-based telecom company called Libra mobiles. The incident is said to have happened in 2011, and the three-year contract was to compose exclusive ringtones for the company. The counsel of the Income Tax department said that the income for work has to be received in Rahman’s individual account and it is taxable. After the deduction of income tax, it can be moved to the charitable trust.
The Madras HC had granted an interim stay on the order passed by the Commissioner of GST and Central Excise (CE) asking AR Rahman to pay a sum of Rs 6.79 crore as arrear and an additional penalty of Rs 6.79 crore.