New Delhi: Notices have been issued to several sponsors of the first edition of the Indian Premier League (IPL), including DLF Ltd, Adidas and Religare, for non-payment of service tax, according to officials familiar with the matter.
While DLF is the title sponsor of the Twenty20 cricket league, Adidas was the sponsor of Mumbai Indians and Delhi Daredevils. Religare was also one of the sponsors of Delhi Daredevils.
DLF had won the exclusive title sponsorship rights of IPL at Rs200 crore for a period of five years.
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The tax liability of the first season of IPL for DLF comes at around Rs5 crore, but the company has paid nothing, the officials quoted above said on condition of anonymity.
A DLF spokesman admitted receiving the notice, but said the company is not liable to pay service tax on title sponsorship of IPL.
“We had received the notice a few months back and (are) contesting it, as title sponsorship of sport activities is not liable to service tax,” the spokesman said.
A Religare spokesperson did not respond to emails and phone calls.
Adidas could not be immediately contacted.
Income-tax officials had recently raided IPL offices for documents related to various bids for team franchisees.
The tax officials have also conducted searches and surveys on almost all IPL franchisees.