IPL venues move out of India – Services to be provided from outside India
In 2008, while IPL players were going under hammer for huge sums to play for the respective teams, the Board also wanted its share in the form of Service Tax. So, on 8th February 2008, the Board issued a letter asking the field formations to examine the contracts and get full facts about the nature of contracts, the quantum and types of monetary arrangements and other aspects of these events. They were asked to examine whether such monetary transactions are for providing taxable services (i.e. sponsorship service, broadcasting service, event management service, business auxiliary service, etc.).
Now that IPL has shifted its venue to outside India, it will be interesting to see as to how these services will be treated. Are they provided from outside India and received in India or received outside India ? How about a new set of “Taxation of services provided by IPL from Outside India Rules 2009”?