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Supreme Court Orders Formula One To Pay Tax In India — A Big Blow To Indian GP
The Supreme Court of India has ordered Formula One to pay tax in India for the races held between 2011 to 2013. With this development the future of F1 in India becomes bleak.
The future of Formula One in India is getting bleak. And now, the Supreme Court of India has ordered Formula One to pay taxes in India for races held between 2011 to 2013.
The Supreme Court has stated that the Formula One World Championship Limited (FOWC) is a permanent establishment in India. And any income gained from such establishment is taxable.
Supreme Court also stated that Buddh International Circuit (BIC) is a permanent establishment for (FOWC). A permanent place for business that causes the creation of income tax.
Although, the taxable income is yet to assessed and the rate of tax will be 40 percent and additional interests will be charged. The payments made by Jaypee Group to FOWC for the use of logos is also considered as income.
Earlier, Jaypee Group signed a contract for the period of five years between 2011 and 2015. But the contract was cancelled by FOWC in 2013 because of the taxation issues.
The latest order from Supreme Court could be the end of Formula one in India. The world's top racing event is unlikely to make its return to the Indian soil in the near future.
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