Service Tax evasion: Sania Mirza may not appear in person

Tennis star Sania Mirza is unlikely to appear in person before authorities concerned in connection with the summons issued to her for alleged non-payment/evasion of Service Tax.

According to sources, a representative of Mirza will appear on her behalf before the authorities on February 16 as she is travelling. The future course of action on whether to pay tax or contest the claims by the Service Tax Department will be decided after the meeting between the officials and her representative, they said.

The Principal Commissioner of the Service Tax office here issued the summons to the tennis star on February 6, asking her to appear before it in person or through an authorised agent on February 16 in connection with an investigation against alleged non-payment/evasion of Service Tax.

"She has gone to Australia. From there she will be travelling to USA. So she may not appear before the authorities. So there was request from them (Sania Mirza) that one of her representative will appear on her behalf," the sources told PTI.

According to the sources, Sania is due for payment of Service Tax on the amount of Rs one crore she received from the Telangana government after being appointed its 'Brand Ambassador'.

"The amount she received for being 'Brand Ambassador' falls under the Service Tax purview and it is due for Service Tax payment," they had said, adding "Rs one crore amount attracts Service Tax of 14.5 per cent besides interest, and penalty has also to be paid on the tax."

In July 2014, the Telangana government had announced that Sania would be the state's brand ambassador, and gave her Rs one crore towards preparations for major tournaments.

The notice from the Service Tax Department said if she fails to comply with the summons and intentionally avoid to attend or to give evidence and to produce the documents and things, without a lawful excuse, she will be "liable to be punished under the relevant provisions of IPC".