Former India cricket captain Sourav Ganguly has gone before the Calcutta High Court and challenged a service tax claim of over Rs three crore, which was charged during his term with the Kolkata Knight Riders for IPL and playing for Team India.
"While the original claim is of Rs 1.51 crore for the period between April, 2006 and March, 2010, another Rs 1.51 crore is in the form of 100 per cent penalty on the amount, which we have challenged before the high court," said his counsel Amitava Mitra from the law firm Sinha and Company.
"The application is likely to come up before a bench of the high court on Tuesday," Mitra said here today.
Ganguly decided to move the high court after service tax commissioner KK Jaiswal upheld the claim of the department in November, 2012. The claim was made in September 2011.
The service tax demand was made under two components -- business support service and business auxilliary service, he said.
"The claim for business support service relates to Ganguly's role in advertisements and other promotional activities for the KKR. But he has already paid over Rs two crore as tax," he claimed.
"Ganguly was also charged service tax for playing cricket for the Indian team and other playing interests during the term. But under the Finance Act, players are not liable to pay service tax on earnings from playing," Mitra claimed.
more in Fwire