Times of India: After cricket, Delhi tax officials probe Hockey India deals

NEW DELHI: After cricket, it is hockey’s turn to face the heat. The Delhi government’s entertainment tax department officials have demanded explanation from Hockey India (HI) for the money spent — Rs 1.5 crore — during the Hockey World League Round 2 (for women) in March 2015 in Delhi. Three tax department officials visited the HI office on Monday (January 4), sources told TOI.

The Indian team, which won that leg in Delhi, was rewarded with a cash prize of Rs 26 lakh for its performance. The girls went on to qualify for the Rio Olympics with a strong performance in the HWL Semifinals in Belgium in July.
According to sources, the cash prize given to the players was distributed after deducting TDS. However, the HI has been given to understand that the federation may have to pay more tax for the prize money distributed despite having closed the balance sheet.

When TOI got in touch with the finance department of the Delhi govt, the officials admitted they had visited the HI premises. “We did go and enquire about their event which was held last year, but we can’t comment till we have seen the balance sheet. We have issued a notice to the Hockey India to give us all the records. We will be able to talk about it only after going through their records,” a tax department official said.

Sources said the tax department has asked HI to explain its revenue stream and to furnish details of the money earned through logo sponsorship (Sahara and Cairn).

The fact that HI had displayed the images of team’s T-shirt logo sponsors on billboards and also used them as the backdrop during pre-match and post-match presentations – ostensibly because the event had no other sponsor – has given the government the impression that the federation may have earned extra money from the logo sponsors and not shown it in the books.

“Even in cricket, the BCCI doesn’t have to pay any money for giving away bonuses and prizes. The HI has already paid all the relevant taxes on the money earned through sponsorship and there is no money pending to the state government. So what are they harassing us?” a HI official said on Wednesday.