Saturday, May 31, 2008

'There is still much to do and lots of grey areas regarding tax implications of IPL.'

Taxing times for IPL?

The taxman is again on the prowl and this time the target seems to be the multi-million dollar Indian Premier League (IPL).While the Punjab Government is reportedly giving a "re-look" at the free security and entertainment tax exemption granted to Punjab Cricket Association (PCA) for hosting IPL matches, the Eden Gardens is the only stadium where the IPL is paying entertainment tax. And the income-tax department is supposedly looking at the income and expenses relating to players, cheerleaders, coaches, and even the moolah spent on ads.
Looks like the IPL matches, which have become a symbol of the innovative sports world, have attracted a lot of curiosity from those in charge of the coffers! Mr Aseem Chawla, Partner (Tax Practice Group), Amarchand Mangaldas, New Delhi, says, "One of the significant tax challenges with regard to ascertainment of taxability of team owners is due to the inherent nature of tradability of players in this format of game. Much would depend on how the contracts between the IPL and the team owners are interpreted by the tax authorities."

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