Sania Mirza sent notice by the Service Tax Department for tax evasion

Hey Sania! Did you forget something? 

What’s the story?

Indian Tennis star Sania Mirza has been issued a notice by the Service Tax Department for a possible case of alleged non-payment or tax evasion of service tax. On February 6, the Principal Commissioner of the Service tax office issued the accusations against the Tennis star who from Hyderabad.

As per the reports of mid-day.com, the Notice says, "Whereas an investigation against you about non-payment/evasion of Service Tax/contravention of provisions of Finance Act 1994 and Rules made thereunder 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."

As per the summons, the world no. 1 Tennis doubles player among women has been charged under the Central Excise Act, 1944 and also the Finance Act, 1944.

The statement further says, "You are hereby summoned under Central Excise Act, 1944 made applicable to service Tax matters under Finance Act, 1994 to appear before the Office in person or by an authorised agent on February 16 to give evidence truthfully on such matters concerning the enquiry as you may be asked to produce the documents and things,"

In case you didn’t know...

We have seen sports stars across the world find themselves in trouble regarding tax evasion. Last year, Lionel Messi got into trouble with the authorities for failing to pay taxes and was only excused a term behind bars because he didn’t have any prior criminal record. However, he and his father had to cough up €3 million in fines.

The heart of the matter

As per the sources of The Mirror, Sania is believed to have overlooked service tax payment amounting to Rs. 14.5 lakhs and beyond and adding cess on it comes to around Rs. 16 lakhs from the 1 crore she earned on winning the US Open Mixed Doubles event in 2014.  

It also clearly stated that if she fails to comply with the above summons and intentionally avoids to attend or give evidence or to produce the documents, without a lawful excuse, she will be liable to be punished under the relevant provisions of IPC.

What’s next?

The Principal Commissioner of Service Tax has stated specifically along with the issued summons to Sania Mirza to appear before the body in person or any other authorised agent on February 16.

Sportekeedas take

As stated above, many sports personalities around the globe have been charged with similar offences in the past. It is very unfortunate on the athletes’ side and also hampers their image. It will be interesting to see how Sania Mirza tackles the situation.