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| Govt likely to get Rs 200 cr as taxes from IPL 3 |
| Press Trust of India / New Dlhi Mar 14, 2010, 15:53 IST |
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The government is expected to rake in more than Rs 200 crore as taxes from the third edition of the Indian Premier League (IPL) T20 cricket tournament.
According to Finance Ministry sources, the taxes would be accrued as Tax Deducted at Source (TDS) from the remuneration paid to players, umpires, coaches, commentators among others under the income tax category while advertising, marketing and consultancy services of the sporting extravaganza will be taxed under the service tax bracket.
As per the estimate calculated by the field formations of the revenue department, the IPL will fetch about Rs 100 crore each under the direct (income tax) and indirect (service tax) categories.
The IPL T20 series is being played from March 12 to April 25 in various Indian cities with foreign and domestic players being paid handsome amounts of money.
The government had received Rs 91 crore as taxes under the TDS category from the first edition of IPL, while the second edition which was hosted in South Africa last year had fetched the department "few crores" as income tax accrued from the BCCI - the organiser of the glamourous tournament - and through other sources.
"The government coffers will fetch around 100 crores each from the IPL as income tax and service tax respectively. The field formations of the department have been asked to keep a check on business ventures, income and earnings of the IPL tournament and the various franchises," a senior Finance Ministry official said.
Under the service tax category, advertising, marketing and consultancy services are taxed, the official said.
The revenue department expects a rise in taxes this year in light of a recent Mumbai I-T department order which had termed the BCCI a commercial organisation and not a charitable one and also a notification in 2008 had brought sportspersons under the professionals category.
The BCCI had then said it would reply and state it's position to the I-T department regarding the order on the charitable organisation.
The Central Board of Direct Taxes (CBDT) notification in 2008 had expanded the scope of 'professionals' under the Income Tax Act, 1961 which included sportspersons, umpires, referees, coaches, trainers, team physicians and physiotherapists, event managers, commentators, anchors, and sports columnists. The notification categorised their services as 'professional services.' Such services are taxed in accordance with Section 194J of the I-T Act.
The I-T department in Mumbai has also created a special cell of officers to monitor the IPL. The metropolis hosts the IPL marketing and advertising offices.
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