The central excise department on Thursday said it had slapped a service tax notice of Rs. 6 crore on Preity Zinta co-owned KPH Dream Cricket, who are part owners of Indian domestic cricket league franchise Kings XI Punjab.
KPH Dream Cricket has been asked to pay tax on the services categorised under 'business support services' and 'manpower supply', official said, confirming, "We have served a notice on KPH Dream Cricket, seeking service tax payment of Rs. 6 crore." The tax demand was raised pertaining to fourth edition of the league.
Notably, KPH Dream Cricket had reported that its net loss had come down by 95% to Rs. 1.52 crore for 2011-12 in comparison to loss of Rs. 35.26 crore for 2010-11, as per financial documents including profit and loss account filed with the registrar of companies here. The firm had reported total revenue of Rs. 90.16 crore in 2011-12, up by over 80%.
According to the shareholding pattern in the company, actress Preity Zinta and industrialist Ness Wadia have 23% stake each while the rest is owned by industrialist Mohit Burman and others.