Hyderabad, Feb 10: Tennis player Sania Mirza has been issued summons by the Commissioner of Service Tax here, in connection with an investigation against alleged non-payment/evasion of Service Tax.
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The ace tennis star has been asked to appear before the Office of the Principal Commissioner of Service Tax in person or through an authorised agent on February 16.
According to sources, Sania is due for payment of Service Tax on the amount of Rs 1 crore she received from the Telangana government after being appointed its 'Brand Ambassador'.
"This amount she received for being 'Brand Ambassador' falls under the Service Tax purview and it is due for Service Tax payment," they said adding "Rs 1 crore amount attracts Service Tax of 14.5 per cent besides interest, and penalty has also to be paid on the Service Tax."
In July 2014, the Telangana Government had announced that Sania would be Telangana's brand ambassador, and gave her Rs 1 crore towards preparations for major tournaments.
The summons issued on February 6 by K Suresh Kumar, Superintendent at the Office of Principal Commissioner of Service Tax here said, "whereas an investigation against you (Sania) about non-payment/evasion of Service Tax/ contravention of provisions of Finance Act 1994 and Rules made there under is being inquired. I have reasons to believe you are in possession of facts or/ and documents and things which are relevant to the inquiry."
"You are hereby summoned under section 14 of Central Excise Act, 1944, made applicable to Service Tax matters under section 83 of Finance Act to appear before the Office in person / by an authorised agent on February 16 to give evidence truthfully on such matters concerning the enquiry," it said.
"If you fail to comply with this summons and intentionally avoid to attend or to give evidence and to produce the documents and things, without a lawful excuse, you
will be liable to be punished under the provisions of sections 174 and 175 of IPC," it said.
Meanwhile, Sania's father Imran Mirza refused to comment and only said, "We will make our representation to the authorities concerned in due course".