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Service tax liability to come soon
October, 12th 2010

Even after termination of the franchisee agreement with Kings XI Punjab by BCCI, KPH Dreams which owns the T20 team is still not out of trouble, it seems, as Central Excise Department on Monday said it would pass an order within a month determining the company's total tax liability.

The department, which had slapped a notice on KPH Dreams for payment of Rs 5.38 crore as service tax, would be passing an order to decide the final tax liability within a month after giving the company third and last opportunity for hearing on October 27.

"The order (for determining tax liability) will be passed within a month after hearing the final arguments of the company on October 27," Central Excise Commissioner HK Thakur told PTI on Monday.

The department had slapped a notice on KPH Dreams in February this year asking the company to pay up service tax to the tune of Rs. 5.38 crore for the payment received during first season of IPL matches.

The department has already held two hearings of the company on September 22 and October 5. "During their replies filed with us, the company (KPH Dreams) claimed that it is not supposed to pay the tax.

But we will go through their (KPH Dreams) replies before fixing the final tax liability," said Thakur.

 
 
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