Huge taxes on us unfair, cries BCCI
Income Tax department has reopened up seven-year-old old cases against the richest cricket Board and terms most of its activities as commercial.
The taxmen are once again breathing down the Board of Control for Cricket in India's neck and one of the richest sporting associations on earth is crying foul. BCCI authorities are unhappy that the IT department wants it to pay a whopping Rs 2300 crore as taxes, arguing 70 per cent of its earnings go to its affiliates for the game's development.
According to a report in the Mail Today, the IT department has dug up cases, as old as 2003-2004, and found that the BCCI has paid only Rs 1000 crore of the Rs 2300 Crore it was to cough up between 2003 and 2010. The report says BCCI were reluctant to pay such huge amounts because the Board felt it was being over-charged. BCCI argued 70 per cent of its earnings from selling media rights and the cash-rich Indian Premier League went to member units and only 30 per cent of its earnings should be taxed.
The IT department has also been accused to double taxation. The BCCI feels it is unfair to tax the Board and its state affiliates separately.
Taxation issues were discussed at the BCCI's working committee meeting on Monday and a committee under treasurer Ajay Shirke has been asked to submit a report in two weeks' time. The IT authorities feel BCCI is a commercial body and it's dealings around IPL are fully taxable. Interestingly, BCCI is a private body and is not governed by the Indian sports ministry and its regulations.