Tennis star Sania Mirza denied service tax evasion on Thursday. She responded to the notices which were issued last week by the service taxes division of the Central Board of Excise and Customs.

The department had summoned the tennis star asking her to appear before the court on February 16 either in person or through representatives. Sania’s accountant arrived on her behalf as she was out of the country.

In her report, Sania said, "the Rs 1 crore given to me by the Telangana government was a training incentive”.

“Sania’s representative submitted certain documents before the Service Tax authorities and contended that the sum of Rs 1 crore she received from Telangana government was training incentive and the amount was not towards becoming state’s brand ambassador,” sources said.

The notice was issued by Service Tax Hyderabad-II Commissionerate in Red Hills. The notice was sent at her residence in Jubilee Hills. Sources said "the tennis star has not disclosed proper break-up of earnings."

The notice says "Whereas an investigation against you about non-payment/evasion of Service Tax/contravention of provisions of Finance Act 1994 and Rules made thereunder is being inquired. I have reasons to believe you are in possession of facts or/and documents and things which are relevant to the inquiry."

"You are hereby summoned under Central Excise Act, 1944 made applicable to service Tax matters under Finance Act, 1994 to appear before the Office in person or by an authorised agent on February 16 to give evidence truthfully on such matters concerning the enquiry as you may be asked to produce the documents and things," said the notice, which does not define the case in which she has been ordered to appear.

"If you fail to comply with this summons and intentionally avoid to attend or to give evidence and to produce the documents and things, without a lawful excuse, you will be liable to be punished under the relevant provisions of IPC", it said.

Service Tax Department Issued Notice to Sania Mirza

BY M. DIVYA SRI