BCCI goes to court against IPL tax notice

The Board of Control for Cricket in India (BCCI) has approached the Delhi High Court against a notice issued by the Entertainment Tax Commissioner to the Delhi government,seeking the court’s intervention against the order to pay entertainment tax for the IPL matches played at the Ferozshah Kotla stadium.

Delhi government in January had issued a notice to the BCCI,noting that the sports body had earned money through sponsorships and display of advertisements of sponsors during the matches,for which no entertainment tax had been paid under the provisions of the Delhi Entertainment and Betting Tax (DEBT) Act. The notice sought tax payment for all IPL matches played in Delhi since 2008.

The BCCI,in a plea before the High Court on Monday,said it was not liable to pay tax as IPL was owned not by the BCCI but by the franchisees. Further,the BCCI has asked the court to strike down the amendment made to the DEBT Act in October 2012,which allows for the expansion of the scope of “payments” on which the entertainment tax can be levied.

The High Court bench on Monday took note of the argument that a similar plea had recently been filed by the Fashion Design Council of India,and has issued notice to the Delhi government,asking it to respond to the plea.