Government to rake in Rs200 crore tax from IPL
15 Mar 2010
The Indian Premier League (IPL) is expected to add Rs200 crore to the Indian government's coffers as taxes, say tax experts.
According to independent estimates, the third edition of 20-20 cricket tournament would accrue about Rs100 crore as tax deducted at source (TDS) from the remuneration paid to players, umpires, coaches, commentators.
Another Rs100 crore is expected under the indirect tax (service tax) category from advertising, marketing and consultancy services.
According to Finance Bill 2010, service tax will be imposed on service of permitting commercial use or exploitation of any event organised by a person or organisation.
On 22 February, the government said it will withdrew tax relief for Board of Control for Cricket in India (BCCI), regarded as the richest cricket body in the world.
The Mumbai-based board has managed to stay away from the tax net claiming itself as a 'charitable organisation'.