Fees received by the cricket players from IPL team owners is not Business Support Service

Last updated: 30 January 2023

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The CESTAT, Ahmedabad has ruled that fees received by international cricketers from IPL team owners are not considered 'Business Support Services'. The tribunal found that the primary purpose of the players' engagement is to play cricket, with promotional activities being secondary. Therefore, demands for Service Tax on these fees were deemed unsustainable.

Court :
CESTAT, Ahmedabad

Brief :
The CESTAT, Ahmedabad in Yusuf khan M Pathan & Irfan Khan Pathan v. C.C.E. & S.T. [Final Order No. A/ 10086-10087 /2023 dated January 20, 2023] Set aside the order demanding Service Tax on the fees paid to cricketers. Held that, the fees received by the international cricket players from cricket team owners, whereby, they were employed to play for the respective teams in terms of the contract in Indian Premium League ("IPL") seasons, would not come under the head of ‘Business Support Services’. Further held that, playing cricket is the primary reason for which IPL was formed and promotional activities are ancillary to the main purpose that of playing cricket.

Citation :
Final Order No. A/ 10086-10087 /2023 dated January 20, 2023

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1 Year PLAN

1999

(Excl. of GST ₹359)

2 Years PLAN

3499

(Excl. of GST ₹629)

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3 Years PLAN

4999

(Excl. of GST ₹899)

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Judgement posted by

Bimal Jain

Service

FCA, FCS LLB with21 Yrs of Experience inTaxation Indirect and Direct: Education Qualification: B.Com (Hons) Chartered Accountants Company Secretary LLB Qualified SAP FI/CO Consultants Professional Membership: Chairmanof Indirect Tax Committee of PHD Chamber of Commerce Member of Indirec ... Read more

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