BCCI trapped in Rs 1,300 crore tax net: Report

BCCI,BCCI Tax Case,Board of Control for Cricket in India,ICC World Cup,International Cricket Council
Advertisement

The Board of Control for Cricket in India was yet to find a conclusive solution for tax waiver on ICC World Cup in India. It has landed in a bigger tax net. Department of Revenue has reportedly ordered the BCCI to pay Rs 1303 crore. It also faces a tax evasion case, according to a report by Sports Lounge.  The board was earlier compelled to pay Rs 462 crore in September last year.  According to details submitted by the Finance Ministry in the Parliament last month, the BCCI still has an outstanding of Rs 1,303 crore.
The department has  served a recovery notice to the BCCI on December 20, 2019.
According to the finance ministry, this amount was yet to fall due for recovery as per the provisions of the Income Tax Act, 1961. Interestingly, an amount of Rs 462.22 crore was outstanding as on April 1, 2018 against the BCCI. The entire amount along with interest was recovered in September last year, the website has reported.
The department served notice to the BCCI for recovery of the outstanding amount on December 20 last year. Photo: Twitter
The BCCI enjoyed a tax exemption under section 11 of the IT Act 1961, meant for charitable organisations, till 2012. But the department decided to withdraw BCCI’s registration under Section 12 of the IT act 1961 and declared its activities as commercial ones and counted its income as “business income”.
This recovery proceedings havee begun at a time when the BCCI is struggling to get tax exemptions for conducting International Cricket Council (ICC) events such as 2021 T20 World Cup and 2023 ODI World Cup.
The ICC made it clear to the BCCI in its quarterly meeting last month that without tax exemption all events awarded to them for hosting could be in jeopardy and those tournaments could be moved to another country.
The tax exemption issue of 2011 ICC World Cup, that held in India, is yet to be resolved.
In 2014, the parliamentary committee on finance had sharply criticised the IT department for its lenient attitude to recover huge tax outstanding by the BCCI and the Indian Premier League (IPL).
The parliamentary committee had then alleged that income tax officials are not pursuing the tax cases against the BCCI and demanded action against faltering officials.
The committee had observed in its report, “The updated status furnished in the successive replies of the government are indicative of a marked absence of seriousness in the approach towards this crucial case. One can see that things are yet to culminate fully in the context of even assessment years 2009-10, 2010-11 and 2011-12. While strongly deprecating this state of affairs, the committee desire focused and conclusive action in the matter with utmost promptitude.”
According to BCCI’s 2015-16 annual report, the total amount of TDS/Tax Paid under Protest receivable by the Board from the IT authorities as on March 31, 2016 amounts to Rs 3,134.97 crore (the amount during the previous year was Rs 2,586.50 crore).
The Board believes that it would be entitled to a refund of the tax deducted from the payments made to it and tax paid under protest, together with interest thereon if it is held that it is exempt from IT.

LEAVE A REPLY