Excise dept asks pay details from Yuvraj, 4 other KXI mates

Last Updated: Tuesday, April 20, 2010 - 22:46

Chandigarh: After a notice to owners of
Kings XI Punjab on payment of service tax, the central excise
department here has asked its five players, including Yuvraj
Singh, to furnish details of the payment received from the IPL
franchise.


"We have sought details from players to furnish
details regarding the payment they have received from the
franchise," a senior official of Central Excise department,
who did not wish to be named, told PTI here today.

The Central Excise Department had earlier slapped a
show cause notice on KPH Dreams, which owns Kings XI Punjab,
seeking payment of service tax to the tune of Rs. 5.38 crore
for the first season of IPL.


"We wanted to know how much money the players have
received for playing games and how much money they received
for sponsorships so as to calculate the service tax," the
official said.


Apart from Yuvraj, the department has sought
information from Uday Kaul, Sunny Sohal, VRV Singh and Rishi
Dhawan playing for Kings XI Punjab "as their addresses fall
under the jurisdiction of Central Excise Department,
Chandigarh".

The information has been sought under Section 14 of
Central Excise Act calling for information pertaining to
service tax matters.


The department has demanded copy of agreements signed
by players with their franchise owner, total payment received
from franchise owner, service tax registration number if
obtained by them, details of service tax if paid, copies of
service tax returns if filed and complete books of accounts
and balance sheet, sources said.


Apart from this, the department has also raised a
demand of Rs. 2.54 crore as service tax to be paid by
sponsoring companies under the category of "sponsorship
services" for Kings XI Punjab.


Out of Rs. 5.38 crore, the department had raised a
demand of Rs. 3.89 crore as service tax for payment KPH Dreams
received from BCCI-IPL in the shape of share of revenue, prize
money and share of official beverages.


The department had asked the franchise to pay Rs 9.17
lakh as service tax on Rs. 74.24 lakh worth of services
provided by overseas companies under reverse charge basis.


Service tax demand of Rs 1.02 crore was raised on the
services provided by overseas players and another Rs. 37.55
lakh was demanded on the payment of ticket sales classified
under exempted services.

-PTI



First Published: Tuesday, April 20, 2010 - 22:46

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