The Income Tax authorities have picked up the income tax return of the Board of Control for Cricket in India for scrutiny and initiated proceedings for payment of Service Tax.
Though the BCCI, with operating revenue of Rs 228 crore, is exempt from income tax, its return of income for the Assessment Year 2005-06 was picked for scrutiny, Minister of State for Finance S S Palanimanickam told the Rajya Sabha in a written reply.
"During the course of scrutiny, fulfillment of the conditions for exemption from tax will be subject to verification," the minister said.
Since the BCCI has been registered under section 12 A of the I.T Act as a charitable institution, its income is ordinarily exempt.Due to BCCI's failure to voluntarily pay service tax, proceedings have been initiated by the authorities. It is as a result of those proceedings that the Board has paid Rs three crore as the service tax for the current fiscal.
