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Sunday, January 29, 2012

Parthiv gets notice to pay service tax for IPL earnings


AHMEDABAD: Gujarat cricketers Parthiv Patel and Siddharth Trivedi have been issued showcause notices by the service central excise department asking them to pay service tax on their earnings from the last three seasons of the Indian Premier League

Patel has been asked to pay Rs 42.84 lakh and Trivedi Rs 6.59 lakh as tax calculated on the money they received from their respective IPL franchises. Officials said the players were asked to furnish details on income from sponsorships and earnings from match fees.

"Since the break-up of income streams was not forthcoming, the tax demand was raised," said an official.

The notices say that the players offered 'business support services' to their franchises. While Patel was picked by Chennai Super Kings for Rs 1.3 crore per season, Trivedi played for Rajasthan Royals for Rs 20 lakh per season.

Sources said Trivedi also received Rs 12 lakh as performance bonus for 2008-09, but that was included to calculate tax liability.

Earlier, the department had sent such notices to four players of Kings XI Punjab, including Yuvraj Singh. Patel's chartered accountant Hemal Desai said the 'business support service' category under which tax demand had been raised did not fit cricketing events.

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