At least three Bollywood celebrities have come under the tax authorities' scanner allegedly for dressing up their brand endorsement as "sponsorship" to avoid paying goods and services tax (GST), resulting in significant evasion.
The rate for brand endorsement is 18 per cent and endorsers are supposed to charge the brand/company concerned and pay the tax authorities if the amount they receive is above the GST threshold, which is 20 lakh annually.
This came to light during the probe into online gaming and fantasy sports companies by the Central Board of Indirect Taxes and Customs (CBIC).
"These celebrities were supposed to raise invoices against the remuneration charging GST ...
Instead, they acknowledge the amount received as 'celebrity sponsorship services' to the recipient under the reverse charge mechanism of GST," an official privy to the development said.
This story is from the November 10, 2022 edition of Business Standard.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the November 10, 2022 edition of Business Standard.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber? Sign In
Dividend spurs hope for 1 trn cut in govt borrowing
The RBI approved a dividend of 2.11 trillion for the central government for 2023-24, marking an increase of roughly 141 per cent from 2022-23 (FY23). In addition, the contingency risk buffer has been raised to 6.5 per cent from the previous 6 per cent.
Markets and polls: The Bernstein playbook
With the Lok Sabha election results less than two weeks away, the markets are sitting pretty with the benchmark Nifty and the Sensex closing at record highs.
Adani Group mcap rises to ₹17.5 trillion
Highest since January 24, 2023, when Hindenburg released its report against the group
Weak Q4 may be rare bitter pill for Sun Pharma
DEVANGSHU DATTA Sun Pharmaceutical Industries reported a 34 per cent year-onyear (Y-o-Y) jump in net profit to ₹2,654.6 crore in Q4FY24.
Jio Financial seeks shareholder nod to increase FPI legroom
Jio Financial Services has sought shareholders' approval to raise foreign investments (including foreign portfolio investments), amounting up to 49 per cent of the equity share capital.
BSE calls off merger of GIFT City unit with NSE
Talks fail over disagreements regarding merger
Sebi proposes measures to ease ESG disclosures by listed companies
The Securities and Exchange Board of India (Sebi) has proposed measures to ease environmental, social and governance or ESG-related disclosures by listed companies and their value chain partners.
IPL to boxing, IIT Madras packs a punch with Al
Royal Challengers Bengaluru (RCB) are out of the Indian Premier League (IPL) this season, but they have made a splash by actively incorporating artificial intelligence (AI) and data analytics to enhance player performance developed by the Indian Institute of Technology Madras (IIT Madras).
Limits of the global gold rush
Driven by increased demand, international gold prices are at record highs, surging over 30 per cent in the past two years.
The white man's burden on global tourism
On her travels to Konya in central Turkey, a carpet seller she has befriended asks Shahnaz Habib where she's from.