BackI-T, ED begin probe into source of funds of some IPL teams
I-T, ED begin probe into source of funds of some IPL teams
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Mumbai: The Income Tax department and Enforcement Directorate are reported to have begun a discreet enquiry into the source of funds of certain franchisees of the cash-rich T20 Indian Premiere League (IPL).
Official sources said on Wednesday the “source probe" commenced after a controversy broke out this week over the shareholding patterns of the a consortium led by Rendezvous Sports, which bagged IPL Kochi franchise. The controversy has triggered a spat between IPL commissioner Lalit Modi and minister of state for external affairs Shashi Tharoor.
Sources said the probe has been initiated to find out if there is any illegal flow of funds or whether any black money in being pumped into the sporting extravaganza from offshores.
However, sources maintained that the “source probe" is just an enquiry and may or may not end up in filing of a case.
The probe is only to determine the source of funds though there is no specific input that fuelled suspicions, the sources said. Since amounts in thousands of crores are involved, there is a need to cross check the funding routes, the sources added.
The probe move came even as the CPM said the government should inquire into the source of certain funds flowing into the tournament and reconsider whether any tax exemptions or concessions are justified for this commercial enterprise.
Meanwhile, the government is expected to rake in more than Rs200 crore as taxes from the third edition of the ongoing IPL T20.
According to Finance Ministry sources, the taxes would be accrued as Tax Deducted at Source (TDS) from the remuneration paid to players, umpires, coaches, commentators amongst others under the income tax category while advertising, marketing and consultancy services of the sporting extravaganza will be taxed under the service tax bracket.
As per the estimate calculated by the field formations of the Revenue department, the IPL will fetch about Rs100 crore each under the direct (income tax) and indirect (service tax) categories.
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