‘Enforce tax laws on IPL’
The government has so far not made any assessment of the incomes of, and taxes payable by, the eight existing IPL teams during the last three years, the Finance Ministry has informed a parliamentary panel.india Updated: Apr 21, 2010 00:21 IST
The government has so far not made any assessment of the incomes of, and taxes payable by, the eight existing IPL teams during the last three years, the Finance Ministry has informed a parliamentary panel.
The confession before the Parliamentary Standing Committee on Finance could raise uncomfortable questions on the lax attitude of the government towards strictly enforcing tax laws on the IPL. This is particularly shocking as the money involved in the League has been one of the most widely talked-about issues since the inception of the tournament.
“Since the income of franchisees of the IPL is yet to be assessed, the total tax assessed and collected from IPL and their franchises for the last three years cannot be provided at this stage,” the Revenue Department told the parliamentary committee on Monday.
The report comes amid the ongoing probe by I-T authorities into the sources of funding of the IPL franchises and the overall financial operations of IPL and its parent body, the Board of Control for Cricket in India (BCCI).
In addition to information on incomes and taxes, the parliamentary panel sought a breakdown of revenue foregone by the government on account of tax exemptions, or deductions, granted to activities connected with the IPL.
“Since it started in 2008-09, the income of franchise owners has been shown in the Income Tax Returns for the assessment year 2009-10 onwards,” the Revenue Department said, adding that “The total tax deducted at source (TDS) till the first week of week of March, 2010 is close to Rs. 200 crore.” The total TDS on the activities of IPL can be assessed only a month after the end of the tournament.
“Total income from such activities can be assessed after 21 months from the end of the assessment year,” it said. In 2007-08 the taxable income of BCCI was estimated at Rs 314. 47 crore, while tax assessment proceedings for subsequent years are pending.
The department also informed the panel that, “No tax exemptions and deductions are extended to specific corporates, registered bodies, including high profile bodies like BCCI, IPL, etc.”
First Published: Apr 21, 2010 00:20 IST