Govt yet to give tax relief to ICC for World Cup

[ViruRulez]

Less than 40 days are left for the World Cup to begin in South Asia, but the International Cricket Council (ICC) has not received income tax exemption from the Indian government despite having submitted all the relevant papers. ICC chief executive Haroon Lorgat and BCCI chief administrative officer Ratnakar Shetty. While allotting the tournaments owned by it, the ICC seeks a tax exemption guarantee from host countries so that it could manage its profits/foreign exchange generated at the events in the way it deems fit. In 2006, while hosting the Champions Trophy, the Board of Control for Cricket in India (BCCI) had struggled to get tax exemption. It took a senior Congress party leader and his son from Andhra Pradesh to get the required permission from the highest offices of the government. So far, the BCCI has not approached the duo. BCCI officials are, however, hopeful that permission would come soon to enable the 14- nation tournament to take off as planned on February 17. "There is a government policy that supports tax exemption. Whatever profit the ICC earns is under consideration for exemption. The Indian government is fully backing the event. The [joint] bid submitted with the ICC carried a message from the Prime Minister [Manohan Singh] supporting the event," BCCI chief administrative officer Ratnakar Shetty told MAIL TODAY. "The government will continue to do that, whether it is its home ministry or the external affairs ministry or the visa relaxation or the finance ministry. The papers have been submitted with the government and it should be anytime that clearance would come," he said confidently. BCCI treasurer MP Pandove explained why tax exemption is required by the host nation's government on income generated from tournaments owned by the ICC. "Earlier, the tax exemption was on a case-to-case basis as all series used to be bilateral ones and the exemption was available to state associations as well as the BCCI. But ever since ICC has taken control of the World Cup and all other premier tournaments, all income goes to ICC, except for the income generated from the sale of tickets that goes to the host associations," Pandove told MAIL TODAY . "So if it is proved that the ICC has made profit from the World Cup, it will be liable for income tax. And that's why ICC needs exemption." Pandove, also secretary of the Punjab Cricket Association ( PCA), clarified that the ICC would not have to pay Value Added Tax ( VAT) or sales tax for the World Cup. "VAT will have to be paid by the matchhosting state associations for whatever purchases they will make," he said. The ICC doesn't fall in the entertainment tax bracket too. Giving the example of the Punjab government, Pandove said that host venues will have to pay this tax. "Entertainment tax is also a state subject. For instance, in Punjab, the entertainment tax has been reduced from 125 per cent to 25 per cent and is now payable by all institutions, including cinema halls and sports bodies. The last Test against Australia that we staged in Mohali was under the new rule," he pointed out. "Now, no exemption will be given to anybody since the state government has reduced the entertainment tax. So, we'll have to pay 25 per cent tax for the World Cup matches [in Mohali] too. The ICC will have to pay only income tax." While the BCCI is confident of getting tax exemption for the ICC, it has not sought help of the men who had helped it organise the Champions Trophy five years ago - former Hyderabad Cricket Association ( HCA) president G Vinod and his father and current Congress steering committee member G Venkataswamy. "At that time, we had got it done through Mr P Chidambaram [then finance minister] and Mr Manmohan Singh. This time, BCCI president Mr Shahshank Manohar has not contacted us so far. If they contact us, I don't see why we can't get the work done again," Vinod told MAIL TODAY. "In a way, my father was solely responsible for getting the World Cup here because had tax exemption not been secured for the 2006 Champions Trophy, we wouldn't have been eligible for hosting the World Cup." The World Cup is being cohosted by Sri Lanka and Bangladesh.

http://indiatoday.intoday.in/site/Story/126156/Sports/govt-yet-to-give-tax-relief-for-world-cup.html BTW why does ICC need full tax exemption being a professional body. I thought ICC also had to pay taxes except in UAE where it has tax exemption as per the local laws there. :hmmm: It is but natural that ICC would be making maybe 3-4 times more money by organizing it in India as people are crazy for the game here but why are they liable for full tax exemption. So, do all sports bodies in the world get complete tax exemption in all countries. That sounds a bit ridiculous as they are highly profitable organizations.

[The Outsider]

^ Providing tax exemption is one of the requirements to stage the World Cup. I think FIFA also asks for it. ICC would simply hold it in another country if tax exemption is not provided. Didn't get your point on Dubai - there are no taxes at all there as far as I know, so the question of tax exemption does not arise.

[ViruRulez]

^ Providing tax exemption is one of the requirements to stage the World Cup. I think FIFA also asks for it. ICC would simply hold it in another country if tax exemption is not provided. Didn't get your point on Dubai - there are no taxes at all there as far as I know, so the question of tax exemption does not arise.

Did not know that FIFA also asks for complete tax exemption as world cups are bound to create huge revenue for the sports governing bodies being the premiere competition in that sport. Anyways it sounds ok. I know there are no taxes in UAE and that is why ICC shifted it headquarters from UK to Dubai as there would be no more tax liability for them.

[Sachin=GOD]

Govt withdraws customs concessions provided to BCCI

NEW DELHI: The government on Monday withdrew customs duty exemption on import of goods by the BCCI or bodies certified by it following non-compliance of mandatory requirements. This follows the sports ministry de-recognising BCCI as a national sports federation or the apex body for cricket in India. The move comes ahead of the World Cup which will be co-hosted by the Board for Control of Cricket in India (BCCI) from February 19. "...it is informed that henceforth BCCI would not be eligible to avail itself of duty exemption under notification no 21/2002 customs dated 1.3.2002 or any other customs notification. "Thus goods imported by BCCI or certified by BCCI for import are not entitled to any exemption benefit which is available to sports goods or equipment or consumables imported or certified by a national sports federation (NSF) or apex body," central board of excise and customs (CBEC) said in a circular. The decision, according to Deloitte India Indirect Tax leader Prashant Deshpande, "is a setback to the stakeholders associated with the forthcoming World Cup proposed to be staged in India who would now be visited with a customs duty burden of up to 26.85 per cent on sports requisites". The circular said that the concessions were withdrawn as BCCI did not submit the necessary documents to the ministry of youth affairs and sports. "The ministry of youth affairs and sports has informed that the BCCI has not complied with the mandatory requirements of submitting the necessary documents to the government for annual recognition as a national sports federation (NSF)/apex body for the game of cricket in India", the circular added. In view of the non-compliance, the BCCI would cease to be a NSF or the apex body for cricket with immediate effect, it added. India along with Bangladesh and Sri Lanka is organising the ICC World Cup Cricket 2011 which is being co-hosted by BCCI.

http://timesofindia.indiatimes.com/sports/cricket/top-stories/Govt-withdraws-customs-concessions-provided-to-BCCI/articleshow/7312087.cms

[Tapioca]

The circular said that the concessions were withdrawn as BCCI did not submit the necessary documents to the ministry of youth affairs and sports.

Sounds more like someone didn't get his share of the bribe.

[yoda]

What is an event in the sub continent without some added drama and government involved tamasha.