India news March 14, 2013

BCCI to meet about massive tax bill

Friday will be a busy day at the Cricket Centre - the BCCI headquarters in Mumbai - with a host of meetings lined up. The most important will be the working committee meeting to discuss the income tax department's recent notice, and there will also be an IPL-centric conference.

The tax authorities had slapped a Rs 2300 crore notice (approx. $433m) on the Indian board following a change in the BCCI's objectives. As a result, the income tax department has not only demanded tax from the income generated through commercial properties, primarily the IPL, but they have also demanded taxes from the affiliated units of the BCCI for the share of IPL profits distributed among them.

Following the notice, the BCCI in its working meeting on February 4 in Chennai, had formed a committee headed by treasurer Ajay Shirke to suggest the plan of action. With the financial year set to end on March 31, the deadline for the income tax notice, Shirke and his committee will present their suggestions to the working committee, which will then decide the course of action.

Meanwhile, Friday is also likely to see the end of suspense over the venue for Pune Warriors' home games. With the Sahara Group, owners of the franchise, and the Maharashtra Cricket Association, the staging association, involved in a legal dispute over the title rights of the stadium on the outskirts of Pune, Sahara have been reluctant to play their home games in Pune. With the sixth edition of the IPL set to get underway in less than three weeks from now, time is running out for the IPL top brass.

The IPL authorities are also likely finalise associate sponsors for the next five years. While Hero MotoCorp Ltd, who were associated with the tournament for the first five years, have announced their decision not to continue their association with the T20 extravaganza in the same manner, the IPL executives are hoping for at least five slots to be finalised.

Amol Karhadkar is a correspondent at ESPNcricinfo

Comments have now been closed for this article

  • Abhishek.2626 on March 15, 2013, 5:39 GMT

    Wel.. they werent paying cos in India, sporting bodies enjoy a tax exemption. Because, sport was or never is a money spinner in India. But cricket changed that. And BCCI have become a lot commercial offlate too. So like how movies are taxed in India, the IT dept has decided to tax the BCCI too.. as a special case. But now the other sporting bodies still enjoy the tax benefit.

  • on March 15, 2013, 2:38 GMT

    The BCCI was classed as either non-profit or a charity. Yes...

    They finally officially changed their status and the taxman rubbed his hands in glee.

  • SettingSun on March 14, 2013, 20:25 GMT

    Maybe they should ask the tax department for a review of their decision. Oh, wait....

  • zedyesiam on March 14, 2013, 19:48 GMT

    They should pay tax, why weren't they to begin with?!

  • Abhishek.2626 on March 15, 2013, 5:39 GMT

    Wel.. they werent paying cos in India, sporting bodies enjoy a tax exemption. Because, sport was or never is a money spinner in India. But cricket changed that. And BCCI have become a lot commercial offlate too. So like how movies are taxed in India, the IT dept has decided to tax the BCCI too.. as a special case. But now the other sporting bodies still enjoy the tax benefit.

  • on March 15, 2013, 2:38 GMT

    The BCCI was classed as either non-profit or a charity. Yes...

    They finally officially changed their status and the taxman rubbed his hands in glee.

  • SettingSun on March 14, 2013, 20:25 GMT

    Maybe they should ask the tax department for a review of their decision. Oh, wait....

  • zedyesiam on March 14, 2013, 19:48 GMT

    They should pay tax, why weren't they to begin with?!

  • No featured comments at the moment.

  • zedyesiam on March 14, 2013, 19:48 GMT

    They should pay tax, why weren't they to begin with?!

  • SettingSun on March 14, 2013, 20:25 GMT

    Maybe they should ask the tax department for a review of their decision. Oh, wait....

  • on March 15, 2013, 2:38 GMT

    The BCCI was classed as either non-profit or a charity. Yes...

    They finally officially changed their status and the taxman rubbed his hands in glee.

  • Abhishek.2626 on March 15, 2013, 5:39 GMT

    Wel.. they werent paying cos in India, sporting bodies enjoy a tax exemption. Because, sport was or never is a money spinner in India. But cricket changed that. And BCCI have become a lot commercial offlate too. So like how movies are taxed in India, the IT dept has decided to tax the BCCI too.. as a special case. But now the other sporting bodies still enjoy the tax benefit.