The board is liable to pay the tax for revenue earned from advertisements and sponsorship from companies for Test cricket matches.
MUMBAI: The Central Excise and Service Tax Appellate Tribunal has ordered the Board of Control for Cricket in India to pay Rs 3 crore towards its service tax dues for 1999-2000 to 2002-2003 by February 27.
The BCCI is liable to pay Rs 11.19 crore as service tax for the revenue earned from advertisements and sponsorship from companies for the Test cricket matches during the relevant period, Commissioner of Central Excise (Service Tax) Satyendra Singh said.
The commissioner said his office had issued a showcause notice to the BCCI asking the board to pay Rs 11.19 crore dues towards service tax liability.
The BCCI filed an appeal before the appellate tribunal that stayed the order and asked the board to make Rs 3 crore as interim payment.
The BCCI has been given time till February 27 to pay the sum and file a compliance report.
The date for the next hearing will be decided on February 27.
In December 2005, the BCCI, by awarding official kit sponsorship to global sports accessories major Nike for Rs 196.66 crore, had become the world's most valued brand as seen by sponsors.
This is not for the first time that the BCCI has been served a showcause notice by the excise department, the sources said.
Some of the notices are adjudicated while others are in the process of adjudication, the department sources added.
The BCCI generates lot of revenue by way of advertisements on hoardings, displaying logo of sponsors on apparel of players. Generally the arrangement between BCCI and sponsors of matches is that two-third space in the stadium is reserved for advertisements of the sponsors and one-third for others, the sources said.
The excise department feels that collecting amounts from sponsors for display of advertisements amounted to rendering services of the advertisement agency and hence the BCCI fell within the purview of the service tax, the sources said.
BCCI executive secretary R S Shetty said he was not aware of the notice issued by the excise department to the board.
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