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Tuesday, April 2, 2013

Birth day bash at Mehrangarh Port - Naomi Campbell - Service Tax 10 crore due ?

Nov 2012, a super model celebrating the birthday of her 50 year old boy-friend, now making news !

In a brochure the Govt of India describes it legal obligation of the Act in this manner : ‘A beggar playing music on road not taxable even if soliciting money; but  taxable if same beggar performs at a function for consideration’…………………… it is act under Chap V of Finance Act 1994 ……… the Service Tax in India ushered by Dr Manmohan Singh and extended by the subsequent Finance Ministers.  Service tax is a part of Central Excise in India.  It is a tax levied on services provided in India, except the State of Jammu and Kashmir. The responsibility of collecting the tax lies with the Central Board of Excise and Customs(CBEC).

There are exotic places that attracts tourists ~ one such is ‘Umaid Bhawan Palace’ in  Jodhpur,  one of the world's largest private residences. A part of the palace is managed by Taj Hotels. Named after Maharaja Umaid Singh, grandfather of the present owners of the palace, this monument has 347 rooms and serves as the principal residence of the erstwhile Jodhpur royal family.  There is the Mehrangarh Fort in Jodhpur, Rajasthan, a very large fort  situated 400 feet (122 m) above the city, enclosed by imposing thick walls. Inside its boundaries there are several palaces known for their intricate carvings and expansive courtyards. Mehrangarh Fort is also a favorite spot for Bollywood and Hollywood movies.

Jodhpur is the second largest city of Rajasthan, 335 kilometres (208 mi) west from the state capital, Jaipur and 200 kilometres (124 mi) from the city of Ajmer. It was formerly the seat of a princely state of the same name, the capital of the kingdom known as Marwar.

Naomi Campbell (1970) is a British model in the fashion World from her age of 15 and easily one of the most recognizable models. In Nov 2012, British supermodel Naomi Campbell arrived in Jodhpur  with her Russian billionaire boyfriend Vladimir Doronin,  for celebrating his 50th birthday. The couple, who have been dating since 2008, had chosen the magnificent Mehrangarh Fort for the pre birthday bash on November 6 which had  200 celebrities from Hollywood and modelling industry. The 42-year-old catwalk queen and Doronin were  accommodated in the Umaid Bhawan Palace. Entire fort was decorated in the Indian and predominantly Rajasthani theme of vibrant colours. A team of British professionals had been roped in by the organizers for the decoration of the fort.

The couple entered the fort in a royal procession with Rajasthani folk artists performing throughout the walk. Campbell was helped to organize the festivities by Paris-based travel expert Omar Cherif, who owns OC Travel. It was touted to be a party of the century.   The enormous venue had Rajasthani themes, with the main room decorated in bright colours, with comfortable beds and cushions scattered everywhere. Following the Bond style e-invites that guests received, which featured images of Vladimir underwater a la 007, a giant portrait of the birthday boy and Naomi posing under the title 'For Your Eyes Only'  was hung in the main party room.

It is this party organized by her that is news …. Daily Mail reports that organisers of supermodel Naomi Campbell's Mehrangarh Fort party may owe up to Rs 10 crore in service tax. Supermodel Naomi Campbell put Jodhpur's Mehrangarh Fort on the global tourism map by throwing a birthday bash for her billionaire Russian boyfriend Vladimir Doronin last November; but there are claims that the heritage hotel is now dealing with a severe service tax hangover. The organisers of the gala party could not keep out the prying eyes of the revenue department's service tax division.

Supermodel Naomi Campbell attended a birthday bash for boyfriend Vladimir Doronin at the Mehrangarh fort in Jodhpur last November whence reportedly each service offered to the 200-odd guests of the catwalk queen came with a huge price-tag. If the newspaper report -  the service tax departments of the Union finance ministry and Rajasthan are to be believed, the organiser of the "great show" owes nearly Rs 10 crore in service tax dues for the "number of taxable services provided".

It was a glitzy event. Sample these: Guests arrived in chartered planes and were transported in Rolls Royce, designer clothes were arranged and were entertained with songs from guess whom - Grammy winner and American singer Diana Ross who reportedly commanded a price of $500,000 (Rs 2.7 crore). When contacted, chief commissioner of central excise (Jaipur Zone) Ajesh Kumar said: "I can't comment on the amount due in service tax as the matter is still under investigation.... we are yet to quantify the service tax dues. It can be less or more. The matter is under investigation and we have filed our response to Union finance ministry.'' A top finance ministry official, however, said, "the service tax dues won't be less than Rs 10 crore. We have asked the local authorities (Jaipur Zone) to probe the matter".

MAIL TODAY has in its possession the correspondence between the Finance ministry's service tax division and the office of chief commissioner of central excise (Jaipur Zone). The claims were put to Ms Campbell's London representatives. However, Mail Online India had not had any response at the time of going to press.

Source :  Daily Mail

With regards – S. Sampathkumar.
2nd April 2013.


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