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I-T dept gets Rs400 cr as TDS from IPLIII

I-T dept gets Rs400 cr as TDS from IPLIII
PTI
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First Published: Mon, May 03 2010. 07 47 PM IST
Updated: Mon, May 03 2010. 07 47 PM IST
Mumbai/New Delhi: The Income Tax department probing alleged financial irregularities in the IPL has collected TDS of nearly Rs400 crore from the third edition of the T20 tournament.
The department has accrued the amount as tax deducted st Source (TDS) from the remuneration paid to players, umpires, coaches, commentators and from payment of overseas publicity rights.
I-T authorities are putting together the “final figures” of TDS collections as they are collecting information from various of their offices across the country where the IPL franchises are registered.
“The TDS collections from the third edition of the IPL are cruising towards Rs400 crore-mark. The department is finalizing the collections from across the country,” a top I-T officer said.
The I-T department is currently not only probing the source of money into the tournament but is also investigating the “taxation aspects of transactions relating to the Indian Premier League” including the flow of money from offshore destinations into the tournament.
After the Chennai Super Kings (CSK) were crowned winners of the IPL III in Mumbai on 25 April, the department started collating and collecting the taxes under the TDS category paid by the various franchises to “professionals and professional services.”
The department had collected documents related to bidding, payment of taxes and various other financial details during its countrywide survey operations on various IPL franchises, with the first such operation being conducted at the BCCI and IPL premises including at the office of suspended IPL commissioner Lalit Modi on 15 April.
The I-T department in Mumbai has created a special cell of officers to monitor the IPL as the metropolis hosts the IPL marketing and advertising offices. Almost eight investigation wings of the department in various cities are also probing the IPL transactions.
A Central Board of Direct Taxes (CBDT) notification in 2008 had expanded the scope of ‘professionals’ under the Income Tax Act, 1961, which included sportspersons, umpires, referees, coaches, trainers, team physicians and physiotherapists, event managers, commentators, anchors, and sports columnists. The notification categorised their services as ‘professional services’.
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First Published: Mon, May 03 2010. 07 47 PM IST