Sunday 20 October 2013

Taxman in India ready to swoop on Adnan Sami

Adnan Sami. PHOTO: FILE
NEW DELHI: 
Singer and musician Adnan Sami’s woes in India seem to have worsened in recent days. After being slapped with a notice for overstaying in India in violation of his visa, this artist of Pakistani origin has now been asked why he has not paid the service tax for the money he has earned in that country.
Sources in the Service Tax Department on Saturday said they booked a case against the musician on October 15 for allegedly evading service tax on assignments and projects he had undertaken.
“We have not been able to consolidate the exact figure of evasion. Sami will be grilled on Monday and then only we will be able to ascertain the amount,” a service tax official was quoted by agencies as saying in Mumbai.
Tax officials have also directed the 44-year-old to bring all the records pertaining to his work on Monday. In the meantime, Sami has managed to get a visa extension for three months from October 17.
Sami is a service provider and has to collect the tax for the people he provides his services to and pay it onwards to the government.
The current rate of service tax is 12.36% on gross value of the service. Service tax is only liable to be paid in case the total value of the service provided during the financial year is more than Rs1 million.
If the value of services provided during a financial year is less than this, paying it is optional. Currently, the government of India is on a drive to collect all outstanding taxes.
The tax department believes Sami did not pay tax in 2012.

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