BCCI might lose Rs 955 crore if ICC doesn’t get tax exemption from Govt for internet hosting 2023 World Cup

The BCCI might lose round Rs 955 crore (USD 116 million) if the central authorities sticks to its determination to levy 21.84 % tax surcharge on ICC’s broadcast income from the 2023 ODI World Cup, in keeping with a Board report.

India is to host subsequent 12 months’s 50-over showpiece in October-November. Tax surcharge refers to “an additional charge, fee, or tax that is added to the cost of a good or service beyond the initially quoted price”. A surcharge is commonly added to an present tax and isn’t included within the acknowledged worth of the great or service. As per ICC norms, the host nation is required to get tax exemption from the federal government for internet hosting tournaments organised by the worldwide physique.

Since India’s tax guidelines don’t permit such exemptions, the BCCI has already misplaced near Rs 193 crore (USD 23.5 million) as the federal government didn’t exempt tax surcharge for internet hosting the 2016 ICC T20 World Cup. The BCCI remains to be combating that case within the ICC tribunal.”The subsequent ICC main males’s occasion, which is the ICC Cricket World Cup 2023, is scheduled to be held in India within the month of October & November 2023. The BCCI was obligated to ship a tax exemption or a tax resolution to the ICC for this occasion, newest by April 2022,” acknowledged the report circulated amongst state items forward of the Board’s October 18 AGM in Mumbai.

“This timeline was additional prolonged by the ICC Board until thirty first May 2022. At the beginning of this monetary 12 months, the BCCI had suggested the ICC that in keeping with the tax order for the 2016 occasion, it was anticipated {that a} 10% (excluding surcharges) tax order might be obtained as an interim measure for the 2023 occasion throughout the required timeframe.

“The ICC has now received a 20% (excluding surcharges) tax order for its broadcast revenue for the 2023 event from the tax authorities in India.” According to the BCCI doc shared with the state our bodies, the opposed influence on the Board’s income from the ICC, if a 21.84 per cent tax is paid, could be USD 116.47 million.

It is known that the BCCI remains to be attempting to barter and produce down the tax surcharge proportion to 10.92 per cent from the prevailing demand of 21.84. If the BCCI can cut back the tax surcharge to 10.92 per cent, then the income loss could be round Rs 430 crore (USD 52.23 million). “The BCCI is presently working with the Ministry of Finance, Government of India and have represented towards this 20% (excluding surcharges) tax order on the very highest degree and are hopeful {that a} 10% (excluding surcharges) tax order could be forthcoming shortly.

“It is to be noted that any tax cost incurred by the ICC for the 2023 event in India will be adjusted with the BCCI’s share of revenue from the ICC,” the report additional acknowledged. The BCCI’s share from the ICC’s central income pool for the tenure 2016 to 2023 is USD 405 million (Rs 3336 crore roughly). The ICC is anticipating USD 533.29 million (Rs 4400 crores approx) from the broadcasting income of the 2023 occasion in India.