ANDHRA GOVT SLAPS RS.7.73 CRORE TAXES ON HCA

By Qaiser Mohammad Ali in Hyderabad

THE Andhra Pradesh income tax authorities have slapped taxes close to Rs 8 crore on the Hyderabad Cricket Association ( HCA) under “various heads” for assessment year 2010-11, during which the body hosted an India- New Zealand Test match.

A top HCA official said that the association has decided to file an appeal against the tax amount of Rs.7,73,79,157 as it feels that it has been levied unfairly, though the 30- day period for filing an appeal has lapsed, as per the details mentioned in the notice recently served by the office of the Deputy Director of Income Tax ( Exemptions)- II in Hyderabad.

“The amount should be paid to the manager, authorised bank/ State Bank of India/ Reserve Bank of India at Hyderabad within 30 days of the service of this notice. The previous approval of the Additional Commissioner of Income Tax has been obtained for allowing a period of less than 30 days for the payment of the above sum,” reads the notice, a copy of which is with MAIL TODAY. 

The tax notice says that if the amount is not paid within the stipulated period, a simple interest would be imposed on it, besides a possible penalty.

Current HCA president G Vinod, who was not in the chair during 2010- 11, said: “HCAs chartered accountants are studying the notice to see if the taxes, levied under various heads of accounts, are justified or not. Once they have assessed it, we will appeal to the appropriate authority against the taxes soon.”

Vinod, a former Andhra labour minister, had played a key role in BCCI getting income tax exemption from the government for the ICC for staging the Champions Trophy in 2006.

Former India Test off- spinner Arshad Ayub, who was HCA president in 2010- 11, said the heads under which taxes have been imposed are the ones through which it earns money. 

“These areas include hosting of international matches and giving the stadium [Rajiv Gandhi International Cricket Stadium] on rent etc. We’ve to pay 50 per cent of the taxes now and wait for the outcome of the appeal that we file,” Ayub told MAIL TODAY.