Kings XI Punjab co-owners KPH Dream gets service tax notice

The Central Excise Department today said it has slapped a service tax of Rs 6 crorer on Preity Zinta co-owned KPH Dream Cricket, who are part owners of IPL franchise Kings XI Punjab.

"We have served a notice on KPH Dream Cricket, seeking service tax payment of Rs 6 crore," an official of Chandigarh zone of Central Excise Department informed here today.

The Bollywood actress Preity Zinta co-owned KPH Dream Cricket has been asked to pay service tax on the services categorized under Business Support Services and Manpower supply, official further said.

Official further said that the tax demand was raised pertaining to fourth edition of IPL.

Notably, KPH Dream Cricket had reported that its net loss had come down by 95 per cent to Rs 1.52 crore for the financial year 2011-12 in comparison to loss of Rs 35.26 crore for 2010-11, as per financial documents including profit and loss account filed with Registrars of Companies here.

KPH Dream had reported total revenue of Rs 90.16 crore in 2011-12, up by over 80 per cent from the revenue clocked in corresponding period, as per company`s financial statements.

According to the shareholding pattern in the company, actress Preity Zinta and industrialist Ness Wadia have 23 per cent stake each while rest is owned by another industrialist Mohit Burman, Karan Paul Chairman of Apeejay-Surrendra Group among others.
PTI