Music Composer AR Rahman has been issued notice by the Madras High Court. As per the media reports, AR Rahman has been issued notice by the Madras High Court after an appeal from the Income Tax Department.
In the appeal filed by IT Department, it was stated that AR Rahman had evaded tax in individual capacity by allegedly transferring his remuneration of Rs. 3.47 crore to his charitable trust. The department has found some disparity in his tax filing for the year 2011-12.
The IT Department moved to the Madras High Court stating that the composer had routed an amount of Rs. 3.47 crore to his foundation AR Rahman Foundation. It is stated that this huge amount was his salary for composing ringtones for a UK-based telecom company. This happened in the year 2011.
Income Tax Department’s counsel said that the income for work that Rahman had received should be transferred to his individual account first, which will be taxable. And after the deduction of income tax is done, it can be further moved to the charitable trust.
According to a news report, the GST officials said that Rahman earned income by composing music for movies and receiving royalties for his music work. The services were taxable and accused the composer for failing to pay service tax for the same.