I-T, ED start `source probe` of some IPL franchisees

Last Updated: Thursday, April 15, 2010 - 00:36

Mumbai: The Income Tax department and
Enforcement Directorate are reported to have begun a discreet
enquiry into the source of funds of certain franchisees of the
cash-rich T20 Indian Premiere League(IPL).


Official sources said today the "source probe" commenced
after a controversy broke out this week over the share holding
patterns of the a consortium led by Rendezvous which bagged
IPL Kochi franchise. The controversy has triggered a spat
between IPL Commissioner Lalit Modi and Minister of State for
External Affairs Shashi Tharoor.

Sources said the probe has been initiated to find out if
there is any illegal flow of funds or whether any black money
in being pumped into the sporting extravaganza including from
foreign shores.


However, sources maintained that the `source probe` is
just an enquiry and may or may not end up in filing of a
case.

The probe is only to determine the source of funds
though there is no specific input that fuelled suspicions, the
sources said. Since amounts in thousands of crores are
involved, there is a need to cross check the funding routes,
the sources added.


The probe move came even as the CPI-M said the
government should inquire into the source of certain funds
flowing into the tournament and reconsider whether any
tax exemptions or concessions are justified for this
commercial enterprise.


Meanwhile, the government is expected to rake in
more than Rs 200 crore as taxes from the third edition of the
ongoing IPL T20 cricket tournament.


According to Finance Ministry sources, the taxes would
be accrued as Tax Deducted at Source (TDS) from the
remuneration paid to players, umpires, coaches, commentators
amongst others under the income tax category while
advertising, marketing and consultancy services of the
sporting extravaganza will be taxed under the service tax
bracket.


As per the estimate calculated by the field formations
of the Revenue department, the IPL will fetch about Rs 100
crore each under the direct (income tax) and indirect (service
tax) categories.

-PTI



First Published: Thursday, April 15, 2010 - 00:36
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