The owners of Kings XI Punjab have been slapped with notices by central and state excise departments asking them to pay over Rs five crore as service tax for IPL's 2008 edition and to furnish details of proceeds from ticket sales this year, senior officials said on Sunday.
"We have issued a notice to them a few days back regarding entertainment tax. They have been asked to furnish complete details of the sale proceeds of tickets," Punjab's Excise and Taxation Department Commissioner A Venu Prasad told PTI.
He said the notice was for the IPL matches played at Mohali in IPL-III. The team played in five matches at Punjab stadium at Mohali in Punjab, with the ticket price ranging between Rs 300 to Rs 25,000.
Compounding problems for the team, which failed to qualify for the semi-finals, the Central Excise Department has also issued a show-cause notice to KPH Dream Cricket Pvt Ltd, the company which owns Kings XI Punjab, asking it to pay over Rs five crore as service tax for matches it played in Mohali in IPL's first edition in 2008.
The notice was issued to the company, which among others is owned by Bollywood actress Priety Zinta and industrialist Ness Wadia, in February this year, a senior official of the Department said.
Meanwhile, the team's Chief Executive Officer Anil Srivatsa denied any knowledge of the notices.
"I have no knowledge about this," he told PTI.
Its Vice President Arvinder Singh also said he was unaware of the matter.