The Board of Control for Cricket in India (BCCI) has been in the news recently as it prepares for the 2023 ODI World Cup, which is scheduled to take place in India. The BCCI has been in talks with the Indian government regarding the tax exemption for the event, and it has been confirmed that the BCCI will pay a whopping Rs 963 crores of tax on behalf of the International Cricket Council (ICC) for the tournament.
Here are some important details about the tax dispute between the BCCI and the Indian government : 2023 ODI World Cup
- Host Agreement: When the 2016 T20 World Cup, the 2018 Champions Trophy (later changed to the 2021 T20 World Cup due to the COVID pandemic), and the 2023 ODI World Cup were awarded to India in 2014, the BCCI and ICC signed a host agreement that included the tax exemption. According to the contract, the BCCI was “obligated” to assist the ICC (and all of its corporate partners) in obtaining tax exemptions.
- Indian Tax Authorities: The Indian tax authorities told the ICC last year that the broadcast proceeds from the 2023 World Cup will be subject to a 20% tax order (excluding surcharges). The BCCI noted that any taxes “incurred” by the ICC will be “adjusted” against the Indian board’s profits from ICC’s central revenue pool in a memo sent to its members and state associations.
- Financial Impact: The ICC’s expected broadcasting revenue from the 2023 World Cup was indicated in the memo by the BCCI as USD 533.29 million. It claimed that a tax order of 10.92% on that would have a “financial impact” on it of around UDS 58.23 million. If the tax component were to be 21.84% as the Indian tax authorities like, that would more than quadruple to over USD 116.47 million (INR 9,62,67,69,615.00 crores).
- Schedule Delay: The ICC typically releases the World Cup schedules at least a year in advance, but this time it is holding off until the BCCI receives the required approvals from the Indian government. This covers one of the crucial issues which is obtaining a tax exemption for the tournament.
- World Cup Details: The ODI World Cup 2023 will start from October 5, and a total of 48 matches will be played. Ten teams will participate in the event, and the BCCI has shortlisted around 12 grounds to host this mega event. The final match will be held at the Narendra Modi Stadium in Ahmedabad.
The BCCI has been facing a tax dispute with the Indian government over the upcoming 2023 ODI World Cup, which has become a major concern for the board. While there is no exemption from the tax, the BCCI has agreed to pay Rs 963 crores on behalf of the ICC to the Indian government. The tax dispute has delayed the release of the World Cup schedule, but the BCCI hopes that the issue will be resolved soon.
The 2023 ODI World Cup is a major event for the cricketing world, and the BCCI is doing everything in its power to ensure that the event is a success. The tax dispute is a setback, but the BCCI’s decision to pay the tax on behalf of the ICC shows its commitment to hosting a successful tournament.
With just a few months left until the event, cricket fans around the world are eagerly awaiting the World Cup and hoping that it will be a memorable one. The BCCI has already shortlisted venues, and preparations are underway to ensure that everything runs smoothly. Despite the tax dispute, the BCCI is confident that the event will be a grand success and is looking forward to welcoming cricket fans from all over the world to India for the 2023 ODI World Cup!
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