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Notice for non-payment of service tax
July, 03rd 2009

Television production company Balaji Telefilms has received a show cause notice for alleged non-payment of service tax of about Rs 63 crore for exports made to a company's client.

"The company has received a show cause cum demand notice from the office of the Commissioner of Service Tax, Mumbai for an amount of Rs 63.5 crores plus interest and penalty pertaining to service tax payable on account of exports made to a company's client," a Bombay Stock Exchange filing said.

The service tax is payable for two years from April 1, 2006 to March 31 2008, the company said in the filing.

Further, the company added that it is also "pursuing all legal remedies available to it in relation to the same".

However, attempts to get the company's comments on the issue failed.

Balaji Telefilms is the country's leading entertainment content provider and has huge infrastructure with about 32 studios. It was started by film actor Jeetendra, his daughter Ekta Kapoor and wife Shobha Kapoor in 1994.

The company is listed on the Bombay Stock Exchange and the stocks of the company closed at Rs 54.75 down 1.26 per cent on the BSE today.

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