BCCI suffers loss of Rs 420 mn from IPL 2

MUMBAI: The shifting of the second edition of the the Indian Premier League to South Africa has cost the Board of Control for Cricket in India (BCCI) dearly.

Cricket?s richest body suffered a loss of Rs 420 million due to the event, resulting in drop in profits to Rs 212 million in 2009-10.

The BCCI has told the Income Tax Department that the IPL is losing money. The department is seeking to recover tax from the BCCI fully for the assessment year 2008-09. The BCCI has to pay taxes after it lost its tax exempt status.

The department had conducted first survey on the IPL in April last year and followed that with an investigation of IPL franchises. The BCCI made a profit of over Rs 3 billion in 2007-08 on an income of over Rs 10 billion. This was the first time that its income touched this level.

However, BCCI?s income fell by 28 per cent while profit fell by a huge 85 per cent in 2008 as result of the first edition of the IPL. Its surplus dropped to Rs 632 million in 2009-10, which was further worsened by the Rs 420 million loss mentioned earlier.

The profit could drop further as the assessment of income returns of 2009-10 are still pending. The BCCI is yet to submit accounts for the 2010 and 2011 IPL editions to the department. The IT Department gets revenue in the form of tax deducted at source (TDS) on payment to players, coach, umpires, commentators, event managers, besides other professionals.

The BCCI has paid Rs 1.31 billion in taxes for 2007-08 and Rs 1.18 billion in 2006-07.