BCCI slapped with Rs. 2300 crore tax bill

President N Srinivasan, at a Press conference

The BCCI is facing trouble with the Income Tax department after receiving a stunning tax bill of Rs 2300 crore (approx $433m). It has turned to its treasurer Ajay Shirke to find a way to deal with the situation.

The working committee of the BCCI had a meeting in the Chennai, to discuss the matter in detail. Since the changes in objectives in 2006, the BCCI has always faced tax related issues, President N Srinivasan reportedly expained to the working committee, according to Mail Today

Being registered as a charitable trust in the name of promoting cricket, the BCCI has always been exempted from tax. Although, since its amendments in objectives, the government has recognized the BCCI to be earning through ‘commercial’ means.

The centre of controversy between the tax officials and BCCI is the income generated by the IPL franchises, as well as the sale of broadcast rights for the T20 League. The tax authorities are seeking taxes from both, the parent as well as the affiliated units (state and regional associations), even as the BCCI claims that a major portion of the amount generated is given to these affiliated units.

Sources suggest that Mr. Shirke has been given a fortnight to help the BCCI ‘sort out’ all the impending issues with the I-T department.