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In October-November 2023, India will host the 50-over World Cup...
Digital Desk: The BCCI could lose around ₹955 crores if the Centre sticks to its decision to levy a 21.84 percent tax surcharge on ICC's broadcast revenue from the 2023 ODI World Cup, according to the Board report.
In October-November 2023, India will host the 50-over World Cup.
A tax surcharge is defined as "an additional charge, fee, or tax applied to the cost of a good or service above the originally indicated price." A surcharge is frequently tacked on top of an existing tax and is not reflected in the product's or service's stated price.
According to ICC guidelines, the host country must obtain a tax exemption from the government in order to hold tournaments organized by the global body.
As India's tax rules do not allow such deductions, the BCCI has already lost close to 193 crores because the government did not exempt the tax surcharge for hosting the 2016 ICC T20 World Cup. That lawsuit is still being fought by the BCCI before the ICC tribunal.
"The next ICC major men's event, which is the ICC Cricket World Cup 2023, is scheduled to be held in India in the month of October & November in 2023. The BCCI was obligated to deliver a tax exemption or a tax solution to the ICC for this event, latest by April 2022," stated the report circulated among state units ahead of the Board's October 18 AGM in Mumbai.
"This timeline was further extended by the ICC Board till 31st May 2022. At the start of this financial year, the BCCI had advised the ICC that in line with the tax order for the 2016 event, it was expected that a 10% (excluding surcharges) tax order could be obtained as an interim measure for the 2023 event within the required time frame. 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," the report added.
According to the BCCI document shared with the state authorities, a 21.84 percent tax would have a $ 116.47 million negative impact on the Board's revenue from the ICC.
It is believed that the BCCI is still attempting to negotiate a reduction in the tax surcharge percentage from the current demand of 21.84 percent to 10.92 percent.
If the BCCI can cut the tax surcharge to 10.92 percent, the income loss will be about Rs. 430 crores.
"The BCCI is currently working with the Ministry of Finance, Government of India and has represented against this 20% (excluding surcharges) tax order at the very highest level and are hopeful that a 10% (excluding surcharges) tax order will 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 the revenue from the ICC," the report further stated.
For the period from 2016 to 2023, the BCCI will receive roughly 3336 crores from the ICC's central revenue pool.
The ICC is expecting ₹4400 crores approx from the broadcasting revenue of the 2023 event in India.
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