Worrying signs for BCCI: No tax exemption from the Indian government calls for difficult financial times for the BCCI.
The persisting Indian tax laws are constructing difficult roads for the Board of Control for Cricket in India regarding the hosting of global events such as the Cricket World Cup, T20I World Cup and the Champions Trophy.
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BCCI, the richest cricket board, has had to take the extra burden of no tax exemption for conducting the ICC World Twenty20 2016 in India. While the International Cricket Council gets tax exemptions from other member nations, stringent tax rules in India speaks of the otherwise.
The Indian cricket board will have to incur tax liability worth around INR 150 crore for conducting the two upcoming global tournaments in ICC Champions Trophy 2021 and the ICC Cricket World Cup 2023.
It is understood that the BCCI’s request of asking the ICC for time till the General Elections take place in the country has been approved by the global body.
“Mr [Shashank] Manohar has categorically said that tax exemption is something BCCI needs to figure out,” a BCCI official was quoted as saying by PTI on conditions of anonymity.
“Since this is about tax laws and it can change with time, the BCCI thinks it’s prudent to wait till the general elections get over and take it from there,” he said.
BCCI to share the burden with the sponsors?
In a bid to ease pressure on themselves regarding the tax liability, the BCCI might turn to the sponsors to ask for the same. The official mentioned that the same is within the rights of the cricket board.
“There is a clause in the contract, where the sponsors may have to carry the burden of tax in case the hosting nation doesn’t have tax exemption laws. So BCCI will be within their rights to ask the various sponsors to share the burden,” the official further said.
CoA chief Vinod Rai has refrained from commenting on the issue before knowing all the details. However, he believes that the issue can be sorted out. “Tax laws are complicated. I will only comment on the issue once I am aware of all the details. However, I don’t think it’s an issue that can’t be sorted out,” Rai said.
