Mahesh Babu
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Telugu superstar Mahesh Babu on Friday clarified that he has paid all his taxes and is a law-abiding citizen.

The legal team of the actor released the statement a day after the Goods and Service Tax (GST) commissionerate in Hyderabad attached his two bank accounts for failing to pay service tax of Rs1.85 million (Dh97,285) for the financial year 2007-08.

According to the commissionerate, the accounts were seized to retrieve Rs7.35 million including interest and penalty.

A statement from Babu’s team said the GST commissionerate attached the bank accounts for a disputed tax demand of Rs1.85 million claiming Rs7.35 million towards tax interest and the penalty for brand ambassador services rendered during 2007-08.

The actor pointed out that the brand ambassador services were not taxable as it was brought in the statute book only in 2010.

“The GST commissionerate, Hyderabad has carried out the attachment without notice when several judicial pronouncements on this issue are in favour of the taxpayer and more so when the dispute is pending before the high court,” said the statement from Babu’s team.