sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Latest Expert Exchange
« Service Tax »
 Income Tax department warns of fake refund mails and messages
 Timeline for issuance of tax return intimation is 12 months
 How to save income tax via medical expenditures under sections 80D, 80DD, 80DDB, 80U
 4 Tips to protect yourself against tax return fraud this year
 Companies with high input tax claims under lens
 Goods and services tax rate cut a conundrum?for realty?developers
 No marginal relief for taxpayers whose taxable income exceeds Rs 5 lakh
 Did you not file? Know exactly how much penalty you will have to pay
 Your salary structure decoded - Know how much you can save on taxes
 How did Netflix get away with not paying income tax in 2018?
 Paying income tax does not grant relief from Goods and Service Tax

Service Tax dept demands Rs 536 crore, BCCI takes legal route
January, 16th 2015

The BCCI is locked in a legal battle with the Service Tax department, which has demanded an amount of Rs 536 crore (approx) as taxes on cricket board's earnings from royalty and media rights in the last one decade.

The ST department has served the richest cricket body in the world as many as 19 show-cause notices in a period of 10 years so far.

As per BCCI treasurer Aniruddh Chaudhary's report which is attached with the Annual Report (2013-14), the BCCI has been receiving showcause cum demand notices from the tax authorities since the financial year 2004-05 until 2012-13 and the exact amount accrued is Rs 536.13 crore.

The information is a part of Schedule 15 of the treasurer's report, which says that the ST department has served 19 showcause cum demand notices during this period.
According to the report, treasurer Chaudhary has apprised the board members of the matter saying that the BCCI has challenged and will contest all the claims made by ST dept having taken legal advice in this regard.

The board had filed an appeal before Central Excise and Service Tax Appellate Tribunal (CESTAT) at the end of the financial year of 2013 has and the matter is still pending.
If one goes by the content of the demands made by the Service tax authorities over the years, bulk of it is regarding BCCI's earnings from royalty income and media rights over the years which is in the tune of few thousand crores.

According to the report, during the 2005-06, ST demanded an amount of Rs 42.81 crore as tax payable on sponsorship/logo money, royalty income, media rights under categories of Advertising Agency Services and Intellectual Property Services for that particular financial year.

BCCI's main objection has been ST categorising their royalty income and income from media rights under the Intellectual Property Services which makes it more taxable.
This is one area where ST has demanded Rs 39.21 crore (2006-07), Rs 80.51 crore (07-08), Rs 54.54 crore (08-09), Rs 85.16 (090-10), Rs 65.79 cr (2010-11) in the subsequent financial years.

Some of the other heads where ST has demanded money and BCCI has decided to challenge are tax on players' fees, franchise fees, players transfers' fees, franchisee license incomes.

In some cases, Media Rights Income has been clubbed under 'franchisee services' category.

In another part of the report, in a separate order from the Commissioner of Service Tax back in November 2, 2011, a demand of Rs 9.41 crore as service tax was demanded for a period of September 2004-May 2009, and Rs 2.88 crore from a period of June 2009 to March, 2010.

This was after ST categorised production costs under Programme Producer Services. Further an interest of Rs 9.41 crore was also levied.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2019 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Organic SEO Outsourcing Organic Search Engine Optimization Outsourcing Organic Website SEO Organic SEO India Website SEO India Organic Search Engine Optimization India Organic Internet SEO India Organic Web

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions