'Yamla Pagla Deewana' in taxman’s noose

Samir Karnik, the co-producer of the first film in the Yamla Pagla Deewana franchise was arrested yesterday by a team of officials from the Service Tax Department, headed by R Shekhar, over charges of tax evasion.

According to the Deputy Commissioner of Service Tax, Sameer Wankhede, Karnik had sold Yamla Pagla Deewana to Eros International for Rs 11.5 crore and evaded payment of service tax to the tune of Rs 1.18 crore.

"Karnik did not pay up. So, we arrested him and produced him in Court on Friday. He was later released on a bail of Rs 2 lakh," he said.

Meanwhile the franchise's star and co-producer SunnyDeol, too has erred on the payment of Service Tax. Wankhede said, "Sunny Sound Productions sold Yamla Pagla Deewana 2 to Viacom for Rs 28.5 crore and we took action against him on August 14"

"Both, Karnik and Sunny Sound Productions had claimed the Service Tax from Eros International and Viacom respectively, but they did not pay it to the government. Karnik has to make his payment quickly. Else we shall take recovery action. Sunny paid Rs 86 lakh on August 15 and promised to pay the balance soon."

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