F1's run-in with Taxman for Indian F1 Grand Prix

[Ardy]

Originally Posted by MileCruncher

P.S: I heard that the parking for 3 days is Rs.600 per car and no you can't pay day wise. Its Rs.600 whether you go once or thrice.

Cheers

If you buy 3 or more tickets, you are eligible for a car park near stands for 1500 bucks for 3 days. If you buy 2 tickets, you are eligible for a two-wheeler parking.

The general parking is far away. If I'm not mistaken a few KMs away from the circuit and you will have to hop into a shuttle to reach the track. Don't remember the parking fee there.

Cheers,

[Hatari]

Trust the Indian Government to leave loopholes and make the organizers to find its way around red tape and run around for last minute permissions.

Post Commonwealth, has the Govt learned nothing?

A shame that they are not going whole hog to support an event of this scale (and with such potential for tourism) by a single private entity.

[sgiitk]

When the GoI does not even consider F1 a sport (Ardy's post #11) then the rest follows. We are now the also rans in Cricket, have lost the Hockey WC due to our bickering, and are risking losing F1.

I am wondering if some joker will check that their are X-cans of lube/luel/parts or whatever when the vehicles come in, and the reduced number when they leave, so an amount Y is payable as tax. I remember in China (c.1984) I was attending a short course and a photocopier with many reams of paper came in from Trieste. They had to pack in an equivalent amount of locally made paper in order to get the export permission. I guess the oil PSUs and co can make a killing.

[scooby05]

All said and done, our Politics and Policies are all stupid. We are supposedly the biggest demaocracy, but, our politicans and bureucrats control the country and hold us to ransom. Sad. I just pray and Hope that the F1 event is not a disaster on many more fronts, including traffic, security, etc etc. Its going to be Chaos out there and be prepared.
IMO its not worth going for people who have already been to F1 races earlier, let it settle down this year and then its worth going.

[Bubby]

Originally Posted by Ardy

If you buy 3 or more tickets, you are eligible for a car park near stands for 1500 bucks for 3 days. If you buy 2 tickets, you are eligible for a two-wheeler parking.

The general parking is far away. If I'm not mistaken a few KMs away from the circuit and you will have to hop into a shuttle to reach the track. Don't remember the parking fee there.

Cheers,

You are right on purchase of 3 tickets you become eligible for car park. However there are 2 type of car parks, one is 1500, which is kind of Park and Walk, the other one is for 750 in which you get parking few kms away from circuit, post that you take shuttles to your respective stand.

I dont think there is a general car parking. From about 8kms from the circuit, only the cars having parking permits will be allowed.

[Bubby]

Just now saw on Headlines Today :::

GOOD NEWS --- All is settled between on JPSI and Govt. on the subject

[Urban_Nomad]

Originally Posted by Bubby

Just now saw on Headlines Today :::

GOOD NEWS --- All is settled between on JPSI and Govt. on the subject

And what is the resolution? Last I heard, Jaypee was to pay around 600 crores to the Govt, who upon re-exporting of the cars and race equipment would deduct 2% (of 600 cr) and return the rest to Jaypee.

[AdityaLN]

Originally Posted by MileCruncher

To this you also need to add Rs.10Cr that JPSI has to pay errrr "Contribute"
to National Sports Development Federation for their F1 Franchisee Contract duration.

Even though I don't have any issues on the contribution part, but that's extra 25Crore that gets added to an event cost. And obviously its the normal viewing public that is going to pay for it.

P.S: I heard that the parking for 3 days is Rs.600 per car and no you can't pay day wise. Its Rs.600 whether you go once or thrice.

Cheers

The government is just milking a cash cow and the organizers in turn are milking us.

[noopster]

This is the sad reality of organising any sporting event in this country. There is no single-mindedness of purpose and every "department" worth its name rises to the occasion and makes an a$s of itself.

Hosting an F1 event is a big honour for a city like Delhi. When the eyes of the world are upon you, you cannot afford to behave like a provincial chieftain. I hope some sanity prevails and the teams are allowed to bring in and re-export their equipment without any duties being levied.

[ArizonaJim]

Being a foreigner to India I am not familiar with its tax laws, however, I can understand imposing a tax on the many things that will be imported for sale to the people who attend the race.
Pennants, shirts, pants, model cars and much more are going to be brought into India with the express intent of selling them for a profit. Therefore, import taxes on these items are justified.

A quote from an earlier posted link said,

" ...The sticking point is the customs department's insistence that the organizers of the Formula One Indian Grand Prix pay duty upfront on all equipment coming into the country for the race...." (underline added)

To my way of thinking, asking an organization to pay taxes or a duty on race cars and support equipment worth tens of millions of Euros for a race, knowing full well that absolutely NONE of it will be sold to anyone in India is absurd.

These cars and the support equipment that is required to run them are, in a sense, just "passing thru".

The massive amounts of money that is going to be spent by the thousands of people who will attend the F-1 event from all over the world will bring wealth and taxable income to thousands of people in India and I'm sure the Government will be there to tax it.

[TheStig]

What to do, our Govt is just too narrow minded.

So anyone have any info on the current situation?

[redcandle]

Turns out the problem has still not been fully resolved!!

Formula 1 teams and drivers have still not resolved all the issues relating to tax at the Indian Grand Prix, despite recent assurances that the matter was being sorted.

Talks have taken place over the past few weeks to allay fears that the sport's competitors could be hit by large tax bills for racing in India - and there was even talk that the situation could go as far as forcing a boycott of the event.


Earlier this month, race organisers Jaypee Sports International (JPSI) offered to pay any customs duties and taxes if required - although this has still not sorted the situation.


There also remain questions about whether individual teams and drivers will also be taxed on their annual income, as India has a claim of 70 per cent corporation tax on 1/19th of every team's turnover.

The Central Board of Excise and Customs (CBEC) recently rejected a tax waiver request.


McLaren team principal Martin Whitmarsh, who is chairman of the Formula One Teams' Association (FOTA), said he was sure the race would go ahead, but admitted that problems still need sorting out.
"There are some concerns for drivers as well as teams, because it is quite a tough tax regime," he explained.


"I am certainly not competent to tell you where we are at, but there are negotiations and discussions going on. I am sure we will race in India but we need to resolve these issues."

Source: Autosport