The earnings of the players who took part in the Indian Premier League's (IPL) second edition in April-May this year would be taxed at 15 per cent by the South African Revenue Service, the BCCI said.
"The BCCI/IPL had discussions with the South African Revenue Service (SARS) before the commencement of IPL-2009 and it was resolved that income earned by BCCI-IPL will not be taxed. However, the income of players would be taxed at 15 per cent," Board treasurer M P Pandove stated in his annual report for 2008-09.
"The BCCI has paid its 37 contracted players Rs 81 crore in 2008-09 as their gross revenue share," Pandove said.
The contracted players are divided into four groups with Grade A players getting Rs 60 lakh each per annum, Grade B Rs 40 lakh, Grade C Rs 25 lakh and Grade D Rs 15 lakh.
"The Board has made a surplus of Rs 54 crore as compared to the budgeted surplus of Rs 233 crore for 2008-09," Pandove said.
"The BCCI treasurer said the period saw the Board's income and profit dwindle in the aftermath of the Mumbai attacks leading to a Rs 110 crore curtailment in its revenue. A total shortfall of Rs 180 crore has resulted when compared to the budgeted surplus of Rs 233 crore due to three reasons," Pandove added.
The major shortfalls were Rs 73 crore (for media rights and sponsors money over cancellation of two ODIs against England), Rs 41 crore (surplus from tours mainly due to cancellation of ICC Champions Trophy and India's tour to Pakistan) and Rs 25 crore given to National Sports Development Fund.
"The IPL has contributed Rs 662 crore in revenue to the Board, whose total income has gone up to Rs 1,373 crore, Rs 373 crore higher than last year's income," Pandove said.
The income from media rights was Rs 466 crore (against budgeted income of Rs 534 crore), and the overall income of Rs 711 crore was also much lower than the projected income of Rs 877 crore, he said. The BCCI's revenue is set to be lower in 2009-10 due to the deficit shown by the second edition of IPL held in South Africa, but still the overall budgeted surplus for the Board has been fixed at Rs 77 crore.
"The IPL's budgeted income is Rs 1699 crore but the expenditure is Rs 1622 crore," Pandove said.
The BCCI is projected to earn Rs 925 crore from events other than the IPL and spend Rs 814 crore which would give it a surplus of Rs 111 crore that would offset the IPL deficit, the treasurer's report said.
Pandove said there has been a remarkable increase in the TV subsidy/IPL subvention/infrastructure subsidy to the member associations from Rs 456 crore to Rs 624 crore, with the distribution from IPL Subvention being Rs 202 crore, an increase of 37 per cent over last year.
