With the aam junta cheering for IPL the govt also smiles as it yields Rs.350cr tax!

Even before the IPL has begun, the government has all the reasons to rejoice. The government hopes to collect Rs 350 crore (Rs 3.5 billion) in taxes from the fourth edition of high voltage Indian Premier League Twenty20 cricket tournament beginning Saturday.

The organisations will be required to deduct tax at source while making payments to players, umpires, coaches, commentators and others involved with the tournament.

Besides, the revenue department will also get service tax from services connected with the cricketing extravaganza like advertising, marketing and consultancy.

The Finance Ministry, according to an official, is expecting an increase of 40 per cent in TDS collection and 20 per cent in service tax realisation.

"In the last edition, we collected around Rs 180 crore (Rs 1.8 billion) as TDS. This year we are expecting a growth rate of 40 per cent in the tax collection," a Finance Ministry official told PTI.

"We expect a growth of 20 % in the service tax in the current season as there would be substantial rise in advertising, marketing and other services," he said.
There are a total of 74 matches which will be played amongst 10 teams for the elite IPL Trophy.

In the first edition of IPL the government had received Rs 91 crore (Rs 910 million) as taxes under the TDS category.

The second edition which was hosted in South Africa last year had fetched the department 'few crores' as Income Tax accrued from the Board Of Control For Cricket In India and through other sources.

As regards indirect tax category, the revenue department expects to mop up around Rs 100 crore (Rs 1 billion) as service tax in the current season.

Sources reveal that in the financial year 2008-09, the revenue department mopped up Rs 68.75 crore (Rs 687.5 million) service tax while in the next year, it was Rs 71.90 crore (Rs 719 million).

Source: http://www.rediff.com/business
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