The Jharkhand Government — now under President’s Rule — is all set to turn down the proposal of the Jharkhand Cricket Association seeking exemption of payment of entertainment tax against the ODI and IPl matches recently held in Ranchi. Consequently, the State Commercial Taxes Department has resolved to go ahead with its move to realise over Rs 1 crore from the JCA.
While the State Government has been withholding its decision to grant the exemption for payment of more than Rs 1 crore as entertainment tax by the JCA, the State Commercial Taxes Department has sent a reminder to the JCA for realisation of the dues. A proposal on the demand of the tax relief to the JCA was, however, prepared by a section of pro-cricket forces in the Government suggesting to seek guidelines from the State Cabinet — presumably at the behest of the Raj Bhawan — but the Commercial Taxes Department preferred to keep on mounting pressure on the JCA for realisation of the dues for want of the Cabinet nod in this regard.
Well-placed sources in
the Commercial Taxes Department confirmed that the JCA had been found a defaulter and a heavy penalty might be imposed for evading taxes as per the rules. Sources told The Pioneer that the department had information about other commercial activities being carried on in the JCA stadium and that the association was supposed to pay taxes for them too. Sources informed that the other activities at the stadium included giving the premises out on rent for marriages and other private functions.
As per the official dossier, the JCA had sought exemption from entertainment taxes against the ODI and IPl matches in Ranchi recently in the light of the fact that such relief had been granted by the Chhattisgarh Government to organisers of the cricket matches in the State. The JCA had contended that if the Chhattisgarh Government could grant exemption from the entertainment tax to the State Cricket Association for holding cricket matches, why not the Jharkhand GovernmentIJ
However, authorities concerned in the Jharkhand Government argued that they were unaware of the facts under what circumstances the Chhattisgarh Government had endorsed the proposal for the tax exemption.
Sources informed that the Chhattisgarh Government had granted tax exemption to the cricket-match organisers for holding a particular match that was played in the month of May. Sources even said that it was mentioned in the letter issued by the Chhattisgarh Government for the tax exemption — submitted by the JCA with the Jharkhand Government to substantiate its claim — that the tax exemption had been granted for that particular match in May only.
Reacting to the proposal for tax exemption — that was initiated with the Raj Bhawan — the commercial taxes officials made it clear that they were not supposed to go by the decision of the Chhattisgarh Government and a direction had already been issued to their Jamshedpur circle — where the JCA is registered — to initiate steps to impose penalties if the dues were not paid.
It is learnt that former Deputy Chief Minister-cum-Finance Minister of the State, Hemant Soren had sought details of the machinery and expenditure borne by the State Government for holding the one ODI and two IPl matches in Ranchi recently.