Kings XI Punjab co-owners slapped with Rs 6 crore service tax

KPH dream cricket, co-owned by Preity Zinta, who are part owners of IPL franchise Kings XI Punjab, have been slapped with a service tax of Rs 6 crore by The Central Excise Department.

An official of the Chandigarh department of The central Excise Department said in an interview : “We have served a notice on KPH Dream Cricket, seeking service tax payment of Rs 6 crore.”

The service tax has been categorized under Business Support Services and Manpower supply, said the official.

Official further said that the tax demand was raised pertaining to the fourth edition of IPL.

The shares of KPH dream sports are distributed amongst Mohit Burman, Karan Paul Chairman of Apeejay-Surrendra Group and actress Preity Zinta and industrialist Ness Wadia, having 23 per cent stake.

KPH Dream Cricket had reported that its net loss had come down by 95 per cent to Rs 1.52 crore for the financial year 2011-12 in comparison to a loss of Rs 35.26 crore for 2010-11.

They have also reported a total revenue of Rs 90.16 crore in 2011-12, up by over 80 per cent from the revenue earned in the corresponding period, all stats are as per the company’s financial statements.

Source: NDTV