Anushka Sharma was the first owner of copyrights on her performances at awards functions or stage shows, and therefore liable to pay sales tax when she received income from them, the Sales Tax department has submitted before the Bombay High Court.
As she transferred this copyright to the producers of such events for a fee, it was akin to a sale, it said. The department filed its affidavits in response to four petitions filed by Sharma.
The Bollywood actor has moved the court challenging four orders passed by the deputy commissioner of Sales Tax demanding tax for assessment years between 2012 to 2016 under the Maharashtra Value Added Tax Act.
In its reply affidavits submitted on Wednesday before a division bench of Justices Nitin Jamdar and Abhay Ahuja, the tax authority challenged this view. The bench said it will hear the matter on Thursday.
Anushka Sharma was a performer under the Copyright Act as a copyright is created in her every artistic performance, the Sales Tax department said.
The petitioner is providing her services and earning income through contract for services and not through contract of services (that is, she is not employed by anybody). Therefore, under the Copyright Act, she is the first owner of the copyrights created in her artistic performance, it said.
Sharma receives income for her artistic performance from various client companies, and thus along with her artistic performance, the copyright on it also gets transferred to the client, the department said.
Her copyrights get transferred to the client company for commercial purposes and she receives valuable consideration. Hence it is covered under the definition of Sale under the MVAT Act, the affidavit said.
Under provisions of the MVAT Act, a hierarchy in appeals is provided for. Apart from appeals, there is also provision for review, it said.