Red Chilli Entertainment Private Limited, the company owned by actor Shah Rukh Khan was found to have allegedly defaulted in the payment of Tax Deducted at Source (TDS).
The default was detected during the survey conducted by the TDS wing of the income tax (I-T) department at the Khar office of the company on Thursday.
During the preliminary inquiry, the default amount was found to be about Rs 10 lakh. "We are further quantifying the amount," said a senior I-T officer requesting anonymity as he is not authorised to speak to the media.
When contacted Shah Rukh's secretary Karuna said that it was a simple survey. "They had come to see the procedure the company is following in tax deduction," she said. She further said that the survey was a routine procedure.
She refused knowledge of the default detected by the I-T department. She claimed that all the papers of the company were in order.
Karuna said that the survey was not a big issue. She stressed that Shah Rukh was the highest taxpayer and has always set precedent in paying taxes. "We are the first to pay service tax and stamp duty," she said.
The company had made films like Main Hoon Na and Paheli.
The officer said that the company, basically into film production, had hired studios for shooting and in some cases allegedly did not deduct TDS while making payments for the same.
In some other instances, TDS was allegedly either not deducted from the salary of employees or deducted but allegedly not paid to the I-T department.
Source: Hindustan Times
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