Rajinikanth gets relief in ₹57L service tax demand case
Rajinikanth just got a big relief—tax authorities wanted him to pay nearly ₹57 lakh in service tax for renting out his Chennai property to a hotel, but the CESTAT tribunal has now scrapped that demand.
The bench said the facilities he provided, like the restaurant and banquet hall, are all part of running a hotel—not separate businesses.
Officials said property was commercial, so extra taxes were due
Between 2007 and 2012, officials argued Rajinikanth's property counted as commercial because it had things like a health club and bar.
They said this meant extra taxes under old rules. But Rajinikanth's side pushed back, saying these features are just normal parts of hotel accommodation.
Tribunal agreed with actor's side
The tribunal agreed that these facilities mainly serve hotel guests and help make the hotel work better.
As they put it, "Their presence enhances the commercial viability of the hotel...they continue to function predominantly for the benefit and use of hotel guests."
So, no extra tax for Thalaiva this time!