IPL 2018: BCCI paid INR 3500 crore in tax since 2008

The Board of Control for Cricket in India (BCCI) may have earned a fortune with their cash-rich league IPL (Indian Premier League). But the cash-rich Board had to pay an exorbitant amount of INR 3,500 crore in taxes over the last ten years.

Since the fiscal year of 2007-08, BCCI on an average shelled out INR 350 crores every year in taxes.

According to sources, with help of the billion-dollar competition IPL, BCCI earned around INR 12,000 as a rough estimate since its inception in 2008.

The income tax department, terming the event as a commercial activity, refused to grant an exemption to BCCI.

BCCI in its Memorandum of Association (MoA) listed its objective as ‘the growth and development of cricket in India’ and were considered as a charitable organization. Therefore, the department would exempt the board of its taxes.

However, since the commencement of professional domestic T20 league, the I-T department levied taxes terming it as a commercial activity.

“Earlier, BCCI would get a tax exemption since it was considered a charitable organisation. However, after IPL began, the I-T department has changed its tune, saying IPL is a commercial activity,” revealed a source close to the matter according to Times of India.

BCCI, on the other hand, has continued to discharge the amount under protest and have filed an appeal to still be treated as a non-profit organization.

“It means that in the last ten years, we have paid tax to the tune of Rs 3,500 crore, or almost Rs 350 crore a year. We have paid up under protest and filed an appeal that we should be continued to be assessed as a nonprofit body that promotes cricket,” further added the source.

BCCI has also challenged the 30 percent tax demand in the Income Tax Appellate Tribunal (ITAT) besides issuing a writ petition in the Bombay high court.

It hopes to recover the tax paid if it’s decided that it is entitled to I-T exemption. Moreover, the board paid INR 100 crores in January as the income tax under protest for the fiscal year 2013-14.

“It’s against the regular assessment for FY 2013-14. Although we’ve got a stay against the balance amount, we paid the net amount under protest without prejudice. It means we haven’t accepted it, and have gone in appeal in ITAT,” concluded the source.

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