CAG report on Film Stars over Tax evasion

Mumbai, August 05: Several stars of Bollywood, Tollywood, including Ranbir Kapoor, Ajay Devgan, Arjun Rampal, Riteish Deshmukh and even Salman Khan are under the scanner of the Comptroller and Auditor General (CAG) for alleged tax anomalies.

The CAG has detected at least 156 such cases of noncompliance and short payment of service tax, collectively estimated to be worth over Rs. 50cr.

According to the CAG report, in the cases of Khan, Devgn, Rampal and Deshmukh, "producers agreed to provide for and bear expenses relating to the arrangement of services for travel, lodging and boarding of make-up artists, hair stylists and spot boys".

By rule, the value of this 'additional consideration' has to be included in taxable income.

Show-cause have been served to Devgn, Rampal, and Deshmukh.