Government to bank Rs. 200 crore from IPL

IPL-TAXAs the third season of the much-hyped cricket tournament, Indian Premier League kicks off, the Government is planning to bank around Rs. 200 crore from the 44-day long cricket affair.

Out of the Rs. 200 crore, almost Rs. 100 crore is expected to be contributed from the Tax deducted at source (TDS) which will comprise of the tax paid by the players, umpires et al against the remuneration they will receive against taking part in the tournament and the other Rs. 100 crore will be collected on the account of service tax coming from the advertising, marketing and consultancy services.

According to the finance bill passed in 2010, any commercial use of the service or an event organized by a person or an organization, is taxable. The government has also withdrawn the tax relief given to BCCI.

However, BCCI has appealed against the same citing the fact that it is a charitable organization. Supposedly, BCCI is the richest cricket board in the world today and according to the sources, the board earned Rs. 1000 crore in FY 07-08 in the first year when tax relief was withdrawn.