The central excise department, Chandigarh region, will soon issue notices to four cricket players, including Yuvraj Singh, for payment of Rs 1.17 crore as service tax on the income from the first and the second IPL seasons.
“Demand notices to four players including Yuvraj Singh, VRV Singh, Sunny Sohal and Uday Kaul playing for Kings XI Punjab franchise will be issued by either July end or first week of August for the payment of service tax,” an official of the Central Excise Department, who is involved in investigating the IPL case, said.
A decision to raise tax demand from cricket players follows the non-disclosure of breakup of earnings by players from IPL matches.
“These players have not declared about how much they earned from endorsements and how much they earned from playing matches even after notices were serviced to them. But now we have decided to levy tax on income, whether it is match fees, earned by players from IPL 1 and 2 season after assessing their income on individual basis,” he said.
The department has assessed service tax amounting to Rs 96.43 lakh on income of Yuvraj Singh, Rs 11.33 lakh on VRV Singh and Rs 4.53 lakh each on Sunny Sohal and Uday Kaul for first and the second IPL season.
According to the official, Yuvraj Singh claimed earning of Rs 4.25 crore while VRV Singh, Uday Kaul and Sunny Sohal got Rs 50 lakh, Rs 20 lakh and Rs 20 lakh, respectively from the first season of IPL.
“For calculating the service tax, the income in the second season is considered the same as that in the first season,” he informed.