Tax relief withdrawn for BCCI

[Gunner_Mania]

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."

http://www.cricinfo.com/india/content/story/449774.html What effect will this have on BCCI's finances and it's financial clout going forward? Anybody out here with expertise in this area who can shed any light on it's impact?

[Zap_Brannigan]

WTF? The more money BCCI makes, the more the more money to invest in Cricket at the root level. BCCI is still the main sponsor of regional cricket in India. The tax break was the last bastion of attachment that the govt. of India had on BCCI and now BCCI can pretty much run itself as a private firm. Now, how will the courts ask BCCI to air the matches on Doordarshan? BCCI has lots of money and they have spent money to make lots more. But if govt. treats it as a private entity, then there is no difference between ICL and BCCI.

[Sachinism]

IPL is a business, so they should be paying

[hatja_tau]

I think its the right decision. The BCCI would now have to re-structure itself and be more transparent in its activities to be eligible for tax rebates again. The way and the amount of money that was being thrown away at players and officials, was nothing short of ridiculous and totally commercial. Key Point: Taxing BCCI is not only for money (which is good in a way as the funds strapped system gets more money), but also to cut some of its powers. @ Zap, I don't think BCCI can get away with it, when it has to deal with the government at every juncture - security, state organisations, finances, taxes, etc. Remember BCCI has enjoyed the privileges for too long and just cannot do away with it. So its the governments way of saying - my way or the highway!

[zubinpepsi]

about time...

[Zap_Brannigan]

I think its the right decision. The BCCI would now have to re-structure itself and be more transparent in its activities to be eligible for tax rebates again. The way and the amount of money that was being thrown away at players and officials, was nothing short of ridiculous and totally commercial. Key Point: Taxing BCCI is not only for money (which is good in a way as the funds strapped system gets more money), but also to cut some of its powers. @ Zap, I don't think BCCI can get away with it, when it has to deal with the government at every juncture - security, state organisations, finances, taxes, etc. Remember BCCI has enjoyed the privileges for too long and just cannot do away with it. So its the governments way of saying - my way or the highway!

BCCI makes a lot of money. No doubt about. But BCCI is the organization that is responsible for cricket in India, down from funding in schools to ranji trophy. If i believe that the tax money wil be used to help the poor or improve India, i would have no problem. But i am sure, most of that money will go into some politicians swiss bank account. BCCI is the lesser evil. So any money taken away from it is money that a future prospect might not get. Why the double standard with other sports organization ? Is it because BCCI is successful?

[ViruRulez]

I think it is the right decision. It was due now. BCCI is not anywhere near a charitable organization as of now. Maybe they might be given some exemption if required but surely not complete exemption. Anyways I dont think that it will affect BCCI in any significant ways because the tax would be a small percentage I suppose and not a huge portion .. more and more money is coming into cricket every year and anyways BCCI's revenue would still increase after the tax cut

[ViruRulez]

WTF? The more money BCCI makes, the more the more money to invest in Cricket at the root level. BCCI is still the main sponsor of regional cricket in India. The tax break was the last bastion of attachment that the govt. of India had on BCCI and now BCCI can pretty much run itself as a private firm. Now, how will the courts ask BCCI to air the matches on Doordarshan? BCCI has lots of money and they have spent money to make lots more. But if govt. treats it as a private entity, then there is no difference between ICL and BCCI.

I agree with you on the Doordarashan thing .. if the BCCI has been removed from the list of a charitable entity then it should not be forced to show matches on Doordarshan by courts .. it should be allowed to run as a complete commercial entity without any restrictions of any kind unless it is against the law

BCCI makes a lot of money. No doubt about. But BCCI is the organization that is responsible for cricket in India, down from funding in schools to ranji trophy. If i believe that the tax money wil be used to help the poor or improve India, i would have no problem. But i am sure, most of that money will go into some politicians swiss bank account. BCCI is the lesser evil. So any money taken away from it is money that a future prospect might not get. Why the double standard with other sports organization ? Is it because BCCI is successful?

I also agree on the politicians swiss bank account thing too .. the money should be fair and transparent and used for public welfare Regarding BCCI developing grass roots so much, I dont agree with it fully. I am yet to see BCCI making a quality fast bowler academy and creating quality pacers in all these years even though they had all the money to invest ... if they were really interested they should have created genuine and quality fast bowlers .. in fact, I see quite the opposite and fast bowlers are decreasing with coming years.. the domestic fast bowling pool does not even come to our national fast bowlers leave apart quality backups like Aussies and SA etc.

[Zap_Brannigan]

Regarding BCCI developing grass roots so much, I dont agree with it fully. I am yet to see BCCI making a quality fast bowler academy and creating quality pacers in all these years even though they had all the money to invest ... if they were really interested they should have created genuine and quality fast bowlers .. in fact, I see quite the opposite and fast bowlers are decreasing with coming years.. the domestic fast bowling pool does not even come to our national fast bowlers leave apart quality backups like Aussies and SA etc.

Merely stating that they sponsor the tournaments. BCCI is not exactly a great organization that thinks ahead for the good of the game. All they do is build a infrastructure for juniors to go into under 16 and then to under 19 and then to domestic tournaments. I also think that they have some hand in all the district games and college level games. Not saying that they are good at their jobs. But like you said, this opens up BCCI to be completely and totally independent (they could buy security) and they will have no obligation (short term) to develop cricket in India. Besides, there are no stock holders and no owners. Who is responsible for the profits ?

[Desi Cartman]

now BCCI should go public :idea:

[Sachinism]

This is why BCCI should be taxed and taxed heavily, they don't do jack shiiiiiit for cricket.. Every bloody game there is issues with sight screens or some other crap.

[ViruRulez]

Merely stating that they sponsor the tournaments. BCCI is not exactly a great organization that thinks ahead for the good of the game. All they do is build a infrastructure for juniors to go into under 16 and then to under 19 and then to domestic tournaments. I also think that they have some hand in all the district games and college level games. Not saying that they are good at their jobs. But like you said, this opens up BCCI to be completely and totally independent (they could buy security) and they will have no obligation (short term) to develop cricket in India. Besides, there are no stock holders and no owners. Who is responsible for the profits ?

BCCI would anyways need to keep on working for cricket even if they are a commercial entity .. they are responsible for Indian cricket and they also know that the players become crap people would also stop watching and revenue would decrease .. and where will they get players for IPL if they stop grooming domestic completely :winky:

[ViruRulez]

This is why BCCI should be taxed and taxed heavily' date=' they don't do jack shiiiiiit for cricket.. Every bloody game there is issues with sight screens or some other crap.[/quote'] and if you are watching on Neo, the overs are also cut off to include more an more ads .. even horrible sounds a soft word to describe the telecast .. instead of showing ads between cricket telecast Neo shows crcket between ads telecast