The reason for summoning her is that she has not paid service tax on Rs 1 crore paid to her by the government of Telangana for preparing for major tournaments as the state’s brand ambassador. This is not for service to Telangana but for cost. I doubt if service tax can be levied at all in this case. Assuming that it can be, why issue summons when a show cause is enough? It is akin to using a sledge hammer where only a blade was required. Summons is an extraordinary measure issued only to a recalcitrant.
Mirza’s name has been unnecessarily dragged into a controversy. The country will now think that she is a tax evader, which she is not. It will ruin her equanimity and distract her from preparing for tournaments. She is a gem of a tennis player and the country should be proud of her. Tarnishing her name by summoning her is reprehensible.
The department should withdraw the summons and issue a show cause memo, if on merit the service tax is payable. It does not seem to be payable as it was paid for meeting cost, not for being a brand ambassador.
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