BCCI not required to pay service tax, but gets Rs 33cr demand

MUMBAI: The Service Tax Department has sent notices to the BCCI and a few state associations for not paying service tax despite an Appellate Tribunal ruling that the board was not required to do so, the cricket board has said in its annual report.
   
The board had received a demand of Rs 33 crore towards service tax on various receipts of the board such as TV rights, logo money and income from sponsorship.
   
The board had challenged the levy and service tax Appellate Tribunal had ruled that "BCCI cannot be held to be a commercial concern and the same would not be covered by definition of advertising agency and thus any service rendered by it would not be termed as a taxable service."
   
The tribunal had exempted the apex cricket body in the country from paying the tax and penalty amount of Rs 33 crore.
   
However, the board, in the report said, "Though the appeal order is in favour of BCCI, Service Tax Department has been sending notices to the board and a few state associations seeking information on various income received by them and on possible service tax liability."
   
The board's Finance Committee is looking into this case and will be consulting tax experts, the report said.