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Bonanza! IPL to yield Rs 350-cr tax to govt
The government hopes to collect Rs 350 crore (Rs 3.5 billion) in taxes from the fourth edition of high voltage Indian Premier League Twenty20 cricket tournament beginning Saturday.
The revenue will accrue to the government as the organisations will be required to deduct tax at source while making payments to players, umpires, coaches, commentators and others involved with the tournament.
Besides, the revenue department will also get service tax from services connected with the cricketing extravaganza like advertising, marketing and consultancy.
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Bonanza! IPL to yield Rs 350-cr tax to govt
The Finance Ministry, according to an official, is expecting an increase of 40 per cent in TDS collection and 20 per cent in service tax realisation.
"In the last edition, we collected around Rs 180 crore (Rs 1.8 billion) as TDS. This year we are expecting a growth rate of 40 per cent in the tax collection," a Finance Ministry official told PTI.
"This year, the revenue prospects look good, especially after India winning the ICC World Cup," the source said, adding the total collection could go up to Rs 350 crore from TDS and service tax.
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Bonanza! IPL to yield Rs 350-cr tax to govt
"We expect a growth of 20 per cent in the service tax in the current season as there would be substantial rise in advertising, marketing and other services," he said.
The tournament starts on Saturday and final will be played on May 28.
Ten teams would contest for the IPL trophy and there will be total of 74 matches.
The government had received Rs 91 crore (Rs 910 million) as taxes under the TDS category from the first edition of IPL.
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Bonanza! IPL to yield Rs 350-cr tax to govt
The second edition which was hosted in South Africa last year had fetched the department 'few crores' as Income Tax accrued from the Board Of Control For Cricket In India and through other sources.
As regards indirect tax category, the revenue department expects to mop up around Rs 100 crore (Rs 1 billion) as service tax in the current season.
In the financial year 2008-09, the revenue department mopped up Rs 68.75 crore (Rs 687.5 million) service tax while in the next year, it was Rs 71.90 crore (Rs 719 million).