Actor Mahesh Babu has not paid the service tax during 2007-08 for the taxable services he rendered as brand ambassador, appearance money and advertising for promotion of products among others.

According to a press release we have learnt about, it is said as, “The total tax due from him was Rs 1.85 million. Today, the Income Tax and GST department have attached his bank accounts in Axis Bank and ICICI Bank for an amount of Rs 7.35 million, which includes tax, interest and penalty.” When contacted, a senior official of the GST department said that the actor failed to get any reprieve from any appellate authority on this issue. 
 
"We have attached the bank accounts and started recovering... We have recovered Rs 4.2 million from Axis Bank today. Balance, ICICI bank has to pay by tomorrow." They further said the 43-year-old actor cannot operate the bank accounts until he settles the tax dues with the department.