In keeping with the new tax rule in Australia, the Indian Cricket Board has decided to deduct match fees for Anil Kumble and his teammates during their tour Down Under.
The BCCI had received a letter from Cricket Australia in which it was conveyed that the new tax policy required visiting players to pay tax there for the money they earn.
"The issue was discussed in the recent Working Committee meeting and we decided to leave it to our tax consultant to find a way out," BCCI Joint Secretary MP Pandove said on Thursday.
"Any team visiting Australia and earning money has to pay tax. It's not that the players would have to pay anything out from their pocket. As of now, they would receive deducted match fees and there is a double taxation treaty also between India and Australia," Pandove told PTI over phone.
The treaty means the players would not be taxed for the second time when they return home.
According to a change in the tax laws since India's last visit to Australia in 2003, entertainers and sportspersons working Down Under are taxed for the income they generate.
Indian cricketers would thus be taxed for the present tour from their match-fee which could be to the tune of nearly $ 1.5 million (approximately Rs 6 crore).
An Indian cricketer will get around $ 6,200 and $ 4,000 for a Test and a one-dayer.
Assistant manager of the visiting Indian team Dr MK Shridhar has confirmed in Australia that BCCI was asking for an amendment in the law.
"The taxation issue is being handled in Mumbai. We are in touch with our tax consultants whose advice we would follow," said Shridhar.
