MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI S.S. PALANIMANICKAM)
(a): So far as indirect taxes are concerned, full exemption from Custom duty has been extended to specified sports goods/equipment subject to specified conditions
for sporting disciplines such as archery, athletics, badminton, basket ball, billiards
& snooker, boxing, cricket, carom canoeing, kayaking and rowing, cycling, fencing,
football, gymnastics, golf, hockey, hand ball, judo, shooting, skiing,
swimming/water Polo, table tennis, volleyball, weightlifting, wrestling, yachting,
equestrian, kabbadi, karate, Lawn tennis, Lawn Bowling, Rowing, Rugby, Speak Takraw,
Soft Ball, Sqash, Software Mountaineering Equipment, iron Mountaineering equipment,
Rock Climbing Equipment (Vide notification No. 148/1994-Custorns dated 13.7.1994).
Some sports goods/equipment have also been extended unconditional full exemption
from customs duty such as in the case of Snow skis, water sport equipment,
Air rifles/pistols of 0.177 calibre, pellets etc. (S. No. 582.582A and 591 of
notification No. 21/2002-Customs dated 1.3.2002). A concessional customs duty
of 5% has also been provided to specified sports goods for cricket, hockey,
basket ball, volley ball etc. (S. No. 580 of notification No. 21/2002-Customs
dated 13.2002). A concessional rate of 50% customs duty has been provided to
firearms and ammunition imported as personal baggage or as gifts when imported
by renowned shooter subject to specified conditions.
So far as direct taxes are concerned, under the provisions of Income-tax Act,
1961 (the Act), the exemptions are not provided to any specific sport and instead
are available to all the eligible sports events and sportspersons which satisfy the
conditions for availing the benefits. Section 10(39) of the Act provides exemption
to the specified income arising from any international sporting event held in India
to the persons notified in this regard; subject to condition that the event is
approved by the International Body regulating such sport and the event have
participation by more than two countries.
(b): No, Madam.
(c) & (d): So far as direct taxes are concerned, in view of repiy to Part (a),
no general exemption is available to any sports. Therefore, all persons involved
in earning income from sports events are liable to pay income tax except
specifically fulfilling the conditions for exemption and are notified in this
regard. Formula one event has not been notified under section 10(39) of the Act
and therefore is not eligible for exemption for income-tax. However, no exemption
from Customs duty have been extended to goods imported for F1 race. For cricket,
exemption is available only to specified equipments so as to encourage development
of the sport in the country.
(e): The collection of Direct Tax is an overall business activity of an entity
and not of any particular event. Moreover, the collection of Direct Tax depends
upon several factors which includes the receipts earned and expenses incurred by
the entity in organizing such events. Thus it is not possible to predict the likely
collection of income-tax from such events/games.
