Board Of Control For Cricket In India To Shift $79M Tax Burden To Affiliated State Units
Slapped with notices to pay "a whopping sum" of more than Rs. 500 crore ($79M) as arrears to income tax authorities, the Board of Control for Cricket in India "is gearing up to shift the burden to its affiliated state units," according to Firoz Mirza of the HINDUSTAN TIMES. BCCI President N. Srinivasan recently "held a meeting of representatives from various state associations and asked them to stay prepared to pay taxes." Srinivasan "was accompanied by tax consultants in the meeting." An official present in the meeting said, "Yes, we've been asked to get ready to pay our share of tax on the income we receive from the board." Revenue earned through telecast rights of matches "is the prime source of income for the BCCI." As per the income distribution arrangement of the BCCI, "70% of the revenue earned is given to the state association hosting the match while 30% is retained by the Board." The offical added, "As we get 70 percent of the revenue, Srinivasan suggested we should pay taxes on our share after meeting our expenses while the board will pay taxes on the remaining 30 percent after deducting its expenses" (HINDUSTAN TIMES, 9/17).