Tax surcharge refers to “an additional fee, fee, or tax added to the cost of a good or service beyond the initially quoted price”. A surcharge is often added to an existing tax and is not included in the declared value of the good or service.
As per ICC norms, the host country is required to obtain tax exemption from the government for hosting tournaments organized by the global body.
Since India’s tax rules do not allow such an exemption, BCCI has already suffered a loss of Rs 193 crore (USD 23.5 million) as the government exempted the tax surcharge for hosting the 2016 ICC T20 World Cup. was not given. The BCCI is still fighting that case in the ICC Tribunal.
“The next ICC major men’s event, that is the ICC Cricket World Cup 2023, is scheduled to be held in India in the month of October and November in 2023. BCCI was obliged to give tax exemption or tax settlement to the ICC. For this event, latest by April 2022,” said the report circulated among state units ahead of the board’s October 18 AGM in Mumbai.
“This deadline was extended by the ICC Board to 31 May 2022. Earlier this financial year, the BCCI advised the ICC that in line with the tax order for the 2016 event, it was expected that 10% Tax orders (excluding surcharges) can be obtained as an interim measure for the event of 2023 within the required time frame.
“The ICC has now received an order from tax authorities in India to tax 20% (excluding surcharge) for its broadcast revenue for the 2023 event.”
According to the BCCI document shared with the state bodies, the adverse impact on the board’s revenue from the ICC, if 21.84 per cent tax is paid, would amount to USD 116.47 million.
The BCCI is understood to be still in talks and trying to reduce the tax surcharge percentage to 10.92 per cent from the current demand of 21.84.
If the BCCI reduces the tax surcharge to 10.92 per cent, the revenue loss would be around Rs 430 crore (USD 52.23 million).
“BCCI is currently working with the Ministry of Finance, Government of India and has represented at the highest level against this 20% (excluding surcharge) tax order and expects a 10% (excluding surcharge) tax order to be forthcoming soon. Will happen .
The report further said, “It should be noted that the cost of any taxes incurred by the ICC for the 2023 event in India will be adjusted with the BCCI’s share of the revenue from the ICC,” the report further stated. Is.
The BCCI’s share from the ICC’s central revenue pool for the 2016 to 2023 term is USD 405 million (approximately Rs 3336 crore).
The ICC is expecting USD 533.29 million (approximately Rs 4400 crore) from the broadcast revenue of the 2023 event in India.
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