New Delhi: The Board of Control for Cricket in India (BCCI) earned much less in 2012-13 than what it had budgeted. And one of the main reasons is the heavy taxes imposed on the world’s richest cricket body.
The BCCI had budgeted a record Rs 1,050.80 crore gross income in 2012-13, but it actually earned only Rs 950 crore, said a top BCCI source after a meeting of the finance committee here on Thursday.
The Board had projected a surplus of Rs 474.67 crore and it, as per the figures discussed in the meeting on Thursday, earned around Rs 350 crore. And after re-jigging — distribution to its affiliated state associations and 26 per cent of its gross income to players besides other “adjustments” — the net surplus would come down.
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All these are, however, not the final figures, pointed out the source. “These are not the final figures. Some clarifications were sought today (Thursday), so the final balance sheet that will be presented to the working committee will be quite different from what we had on the table today,” the source told MAIL TODAY. “One more meeting of the finance committee will be held before the final balance sheet is presented to the working committee meeting, which will approve the final figures. This working committee, which is expected to be held in the first week of September, will be the final one for the year before the annual general body conclave,” he pointed.
One main reason for the less income is the heavy tax burden on the BCCI. Authorities have slapped about Rs 2,300 crore taxes since 1997-98, after reopening many closed cases.
The BCCI has paid Rs 972.49 crore under protest and made a number of appeals in many cases.
The Board is now seeking the “best alternative” tax issues so that it can avoid going to court.
Tax authorities have started treating BCCI’s income as taxable as they consider it commercial after the Board changed its objective in its constitution on June 1, 2006, and lost its status of a charitable body under Section 2 (15).
An official pointed that when the 2013-14 balance sheet would be prepared, the income would be even less than what it is in 2012-13.
“The reason is that there are matches scheduled during the 2013-14 financial year, and our main source of income is the media rights for matches played at home. Australia is the only team visiting India this winter to play seven ODIs and two T20 Internationals,” he said.
Reproduced From Mail Today. Copyright 2013. MTNPL. All rights reserved.