Ipl taxation

Vignesh Killur (Articled Assistant) (1666 Points)

07 February 2012  

Hi Everyone!

I have some specific questions regarding tax aspects in relation to IPL.

1. At what rate and under which sections is TDS deducted on payments by IPL Franchises/BCCI to foreign players?

2. Is it necessary for Foreign cricketers to file return of Income in India? (since Income is earned in India as matches are played in India). If no need to file returns then under which section they are exempted?

3. Can the Foreign players claim double taxation relief in their country? If an Indian cricketer plays matches abroad how is that income taxed in India? How to claim double taxation Relief in Indian Income tax Act?

4. Do the foreign players need to apply for PAN in India? How are they assessed to tax?

5. If the double taxation agreement provides for lesser tax deduction and player has not applied for PAN, at what rate is tax deducted?

6. What are the Compliance requirements under the Income tax Act for making payments to foreign residents? What are the forms to be filed by the Franchises/ BCCI?

7. What is the Status of BCCI? Is it a Company or Trust?

Thank you in Advancesmiley

VIGGI