Telangana Tourism Department has served serious notices to Prasad Multiplex Management. One of the largest family entertainment centers serving Hyderabad and Telangana population from 2003 can be deep buried in problems if notices served aren’t answered in stipulated time.
As per available reports, Prasad Multiplex evaded taxes of approximately Rs. 10 Crores in last few years showing major loopholes in agreements made with Andhra Pradesh Government during the times when state was undivided when 2 acres land was leased at very nominal price for 33 years period.
According to agreement, Prasad Multiplex is paying Rs. 12 Lakhs per month of nominal land rent and a share of 15 percent from income earned through various business activities at the centre.
However, Telangana Tourism Department claimed that from 2008 till date the 15 percent of profit shared with Telangana Government should not include the Income Tax paid or to be paid. When two individual parties, Prasads and State Government are part of a legal agreement, except Entertainment Tax and VAT, none of the other taxes can be paid from the company. It is left for individual parties to pay their respective Income Tax separately after sharing the total profit generated at source because the agreement is made only on lease basis and not permanent ownership.
The sum total of tax evaded by Prasads to State Government in last eight years is said to be in the order of Rs. 10 Crores and has to be immediately answered, the notice says so.