In the midst of a tax probe into finances of IPL, authorities have issued notices to several sponsors of the first edition of the Twenty20 event, including DLF, Adidas and Religare for non-payment of service tax. The notices have asked as to why no service tax has been paid for the sponsorship deal for the first edition of IPL, held in 2008, official sources said.
While DLF is the title sponsor of IPL, Adidas was sponsor of Mumbai Indians and Delhi Daredevils. Religare was also one of the sponsors for Delhi Daredevils.
DLF had bagged the exclusive title sponsorship rights of IPL at Rs 200 crore for a period of five years or Rs 40 crore per annum.
As such, the tax liability of the first season of IPL for DLF comes at around Rs five crore, but the company has paid nothing, official sources said.
So both the wings of the IRS-i.e., both the the CBDT and CBEC-are the same. They act very, very late-naturally so, working under and reporting to a common boss!
The liability is on IPL and not DLF. How they slap notice I do not know?