Sania gets notice to pay service tax on Rs. 1 cr for being Telangana brand ambassador

Service tax officials from the Central Board of Excise and Customs have issued a notice to tennis player Sania Mirza for allegedly 'evading' tax.

According to reports, the notice was issued under section 65 (104c) of the Finance Act, 1994 on February 6, and accessed by the media on Wednesday. 

Writing for the Times of India, Mahesh Buddi reported that the 'evasion' is with respect to Rs 1 crore that the sportswoman received from the Telangana government for being the 'brand ambassador' of the state. 

Amid much fanfare after the formation of the state in 2014, Chief Minister K Chandrasekhar Rao had felicitated Sania, and made her the brand ambassador on July 22, following which she was given Rs 1 crore.

Following her victory in the US Open mixed doubles later that same year. the state presented her another cheque worth Rs one crore.

Sania has been asked to appear on February 16, either personally, or through a representative, in front of officials.

However, the tennis star's team may argue against the notice.

Speaking to TOI, Sania's chartered accountant Hameeduddin, said, "The Rs 1 crore, received by the tennis star from the Telangana government to be the brand ambassador of the state, is non-taxable. The amount is tax exempted. We have received a communication from the service tax department and we are replying to it."