Indian news

Tax relief withdrawn for BCCI

Cricinfo staff

February 24, 2010

Comments: 10 | Text size: A | A

The Indian government has decided to do away with tax relief for the BCCI after tax officials labelled its activities a "gimmick" to make money. Junior finance minister SS Palanimanickam told the upper house of parliament that the board was a "primarily a commercial entity."

"The [tax] exemption was disallowed for the year 2007-08 as it was held that the BCCI is no longer promoting cricket as a charitable activity and is now primarily a commercial entity," Palanimanickam was quoted by AFP as saying.

The income tax department also said there was "no element of charity" in the affairs of the BCCI. "Cricket is only incidental to its scheme of things," it said in a statement. "It is more into prize money for every run or wicket, which is nothing short of a gimmick. The conduct of certain activities and receipt of income from these activities clearly show that these activities are totally commercial and there is no element of charity in the conduct of BCCI. It is evident that major income arises not from the game of cricket but from the business of cricket."

© ESPN Sports Media Ltd.

Posted by arunrr on (February 27, 2010, 5:25 GMT)

The BCCI is all about making money. They dont want to however, spend money. They dont even want to pay to acquire the primary domain in order to have a qorld class website.

Posted by D.Pramod on (February 25, 2010, 9:57 GMT)

Hi,

My apologies... The Indian with the highest number of County matches played is neither the Nawab of Pataudi Jr (as penned by Mr Nagaraj Gollapudi) nor Bishan Bedi (as incorrectly pointed out by me) but it is Farokh Engineer with 172 County first-class matches for Lancashire.

Of course I have not included KS Ranjitsinhji (with 211 matches for Sussex alone in a long first-class career in England)and KS Duleepsinhji (with 119 matches for Sussex alone not including other first-class matches played in England) as they are primarily listed as England players on the books.

Thanks and Regards,

D.Pramod

Posted by D.Pramod on (February 25, 2010, 8:58 GMT)

Hi,

With respect to comments by Sachinthegreatest, I am sure he does not understand the legalities involved. BCCI may be making profits but it is still ploughing in all those profits back into the game in India. Is it using it for purposes other than cricket? The answer is NO. It is fair to say that the BCCI has stayed true to it's original charter.

However I do agree with him with respect to Cricinfo opening up all articles for comments. For instance take the article by Mr Nagaraj Gollapudi (http://www.cricinfo.com/t20champions2009/content/current/story/429205.html) where he had mentioned that Pataudi is the Indian with the most number of county games (88). I had sent in a correction that it is Bishan Bedi with 110 County caps. My feedback certainly got lost in the morass of General Feedback (although I must add that a couple of other corrections that I had sent in later have been incorporated).

Thanks and Regards,

D.Pramod

Posted by   on (February 25, 2010, 6:57 GMT)

IT department what were you doing until now ... BCCI is a brothel and Lalit Modi it's pimp.

Posted by ChinmayD on (February 24, 2010, 15:26 GMT)

"Tax every Sports body in India not just BCCI .. else its just a move by IT to earn their pie"

BCCI is the only sports body in India which actually makes profit. All the other bodies survive due to government (and BCCI) grants to them. Why would you want to tax the other bodies for?

Posted by SachinIsTheGreatest on (February 24, 2010, 14:33 GMT)

This is the right decision and the BCCI should pay the tak as a commericial profit-making institution.It is laughable that they call themselves a chariable institution.

But I also find it odd how CI has opened comments for this article. I can recall far more serious cricieting issues which would just be written out there and all those who have opinions can go...!! Talk of baiting!!

Posted by   on (February 24, 2010, 9:12 GMT)

Hi,

It is obvious that the BCCI does undertake extensive commercial activities as part of it's operations. However it is imperative to understand that all these activities are subservient to the purpose of promoting cricket in India.

I expect the BCCI to challenge the decision; however to avoid litigation it is my humble suggestion that the BCCI change it's legal structure from that of a registered Society to that of a Section 25 Company under the Companies Act with the constituent State Associations being the shareholders.

Moreover the accountability and transparency requirements under the Companies Act would make the BCCI itself a more transparent organism.

Thanks and Regards, D.Pramod

Posted by   on (February 24, 2010, 8:18 GMT)

Excellent move.

But, why did that minister have to use such language in his statement? He could have shown some maturity & stayed sober in his choice of words. Politicians..aargghh!

Posted by   on (February 24, 2010, 8:00 GMT)

Tax every Sports body in India not just BCCI .. else its just a move by IT to earn their pie

Posted by Rajesh. on (February 24, 2010, 6:33 GMT)

Funny that the Income Tax Department have realized this only now when the whole world knew of it long time ago..........

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