Even as the film stars do their nautanki – like Salman Khan gets just 10 percent of his income and that he signed his first cheque 5 months ago (as credible as his claim of being a ‘virgin’ at 48) – and we just smile at the half truths and pretty lies that is an inevitable part of Bollywood, a rather sinister aspect of Bollywood lies goes unnoticed.
Everything about Bollywood is as fake as a six hundred rupee note featuring Madhubala in front. But this here is the story of intentional lies, fraud, tax evasion and perhaps violation of FEMA (Foreign Exchange Management Act).
First the shocker and then my story.
The shocker: With visible pride YR films announced last week that their Aamir Khan-starrer Dhoom3 created Bollywood history with gross box office collections that touched a never heard figure of Rs 500 crore worldwide, a first for any Indian film.
But YR films have paid only Rs 5.5 crore as advance tax! And when the dust settles down they would pay, may be, another 5 crore, employing what is described as ‘Bollywood accounting’.
It is the same with the entertainment tax.
It has been a boom time for Bollywood with the growth of multiplexes. 3 Idiots collected Rs 227.13 crore
Krrish3 made 300 Rs crore though an over enthusiastic Rakesh Roshan claimed the collections to be Rs 500 crore!
Shah Rukh Khan claimed that his ‘Chennai Express’ had broken the record of !3 Idiots’.
21 films, not to include the recently released ‘Dhoom3’ and ‘Krrish’, made their first hundred crore within days.
Here is the list:
Ek Tha Tiger (Rs 198 crore)
Dabangg (Rs 158.50 crore)
Yeh Jawaani Hai Deewani (Rs 190.03 crore)
Bodyguard (Rs 142 crore)
3 Idiots (Rs 202 crore)
Ra.One (Rs 115 crore)
Dabangg (Rs 145 crore)
Agneepath (Rs 123 crore)
Rowdy Rathore (Rs 131crore)
Jab Tak Hai Jaan (Rs 120.65 crore)
Ready (Rs 120 crore)
Don 2 (Rs 106 crore)
Race 2 (Rs 102 crore)
Son Of Sardaar (Rs 105.03 crore)
Ghajini (Rs 114 crore)
Barfi (Rs 120 crore)
Golmaal (Rs 107 crore)
Housefull (Rs 114 crore)
Bhaag Milkha Bhaag (Rs 100.30 crore)
Singham (Rs 100 crore)
Bol Bachchan (Rs 102 crore)
Ek Tha Tiger reached the figure within a week and the others in the list, like Bol Bachchan took longer to reach Rs 102 crore. But they continued to make more money even after the target.
This is a lot of money!
I’m repeating the shocker: an advance tax of only Rs 5.5 crore for Dhoom3!
Years back, writing for ‘The Daily’, I’d nailed the industry lies when industry struck work demanding a reduction in entertainment tax.
My one line objection was: Pay the taxes honestly before demanding a reduction in taxes.
Our investigation showed that most of the collection figures claimed in the trade magazines and the figures advised to the Collector of Mumbai’s office differed dramatically!
There was massive tax evasion!
Bollywood continues the tradition.
Interestingly, whether it is the credit given to the star’s wife for the costume designs of the heroine or a free Mercedes to a sidey actor, everything is a part of ‘Bollywood accounting’,
Interestingly, the reason Bollywood’s Rs 200 crore and Rs 500 crore are always in the news because film folks always want
to be high profile. Earlier, when they were not so ‘respectable’ their scandals kept them high profile and now flush with money the ‘respectable’ lot of film folks has come down heavily on scandals. The servile media, unable to displease the film stars it needs for their reality shows and awards functions, has toed the line. It has accepted the stories handed out by the industry, stories that revolve around box office collections.
These are the stories that have nailed the lies of Bollywood.
Affairs and scandals could be denied, but denying tax scams is not easy.
*****
by 
