Sania Mirza denies tax evasion

HYDERABAD: Tennis star Sania Mirza, who was summoned in connection with an alleged case of non-payment of service tax, has denied any tax evasion.

In response to the summons issued to the tennis star on Feb. 6, her chartered accountant appeared on her behalf before the service tax authorities on Feb. 16, as Mirza was abroad.

She contended that the Rs. one crore given to Mirza by the Telangana government was a "training incentive."

"Sania's representative submitted certain documents before the service tax authorities and contended that the Rs. 1 crore she received from Telangana government was training incentive and the amount was not towards becoming state's brand ambassador," official sources told PTI.

The sources said the authorities are studying the documents before initiating any future course of action.

The principal commissioner of the service tax office had asked Mirza to appear before the office in person or through an authorized agent in connection with an investigation against the alleged non-payment/evasion of the service tax.

The sources had earlier said, "The amount she received for being 'Brand Ambassador' falls under the service tax purview and it is due for tax payment. Rs. one crore amount attracts service tax of 14.5 percent besides interest, and penalty has also to be paid on the tax."

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