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IPL to yield Rs 350 cr in taxes to govt

IPL to yield Rs 350 cr in taxes to govt
PTI
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First Published: Thu, Apr 07 2011. 07 21 PM IST
Updated: Thu, Apr 07 2011. 07 21 PM IST
New Delhi: The government hopes to collect Rs 350 crore in taxes from the fourth edition of high voltage Indian Premier League Twenty20 cricket tournament beginning tomorrow.
The revenue will accrue to the government as the organisations will be required to deduct tax at source (TDS) 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.
The Finance Ministry, according to an official, is expecting an increase of 40% in TDS collection and 20% in service tax realisation.
“In the last edition, we collected around Rs 180 crore as TDS. This year we are expecting a growth rate of 40% 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.
“We expect a growth of 20% 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 tomorrow and final will be played on 28 May. Ten teams would contest for the IPL trophy and there will be total of 74 matches.
The government had received Rs 91 crore as taxes under the TDS category from the first edition of IPL, while the second edition which was hosted in South Africa last year had fetched the department “few crores” as income tax accrued from the BCCI - the organiser of the glamourous tournament - and through other sources.
As regards indirect tax category, the revenue department expects to mop up around Rs 100 crore as Service Tax in the current season.
In the financial year 2008-09, the revenue department mopped up Rs 68.75 crore service tax while in the next year, it was Rs 71.90 crore.
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First Published: Thu, Apr 07 2011. 07 21 PM IST
More Topics: IPL | Twenty20 | Taxes | TDS | Revenue Department |