On 17 Jun 2011, at 20:35, Deepa Mohan <mohande...@gmail.com> wrote:
> There seems to be no discussion about cricket on this list....or about
> acting....can someone tell me how these two very odd figures (in the first
> sentence) were arrived at?
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> Sachin Tendulkar changes 'job' to save tax
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> Sachin Tendulkar was levied an income tax of Rs 2,08,59,707 on an income of
> Rs 5,92,31,211 he earned from ESPN Star Sports, Pepsico and Visa in foreign
> currency during 2001-02 and 2004-05.
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> Sachin Tendulkar, super God of cricket, has formally declared that he is an
> actor and not a cricketer. The excuse: he models for TV advertisements. In
> order to save tax of around Rs 2 crore ($465,000) on income derived from
> doing TV commercials, Tendulkar told the Income Tax tribunal that acting, not
> cricket, is his profession. The tribunal accepted that he is an artist on the
> grounds that "he has to use his own skills, imagination and creativity in the
> commercials".
>
> Tendulkar was levied an income tax of Rs 2,08,59,707 on the income of Rs
> 5,92,31,211 that he earned from ESPN Star Sports, PepsiCo and Visa in foreign
> currency during 2001-02 and 2004-05. He had challenged the order of the
> Commissioner of Income Tax-Appeal (CIT-A), to pay up. In an order on May 20,
> the tribunal ruled that Tendulkar could claim deduction in tax on his income
> from modelling as he is an artist.
>
> Tendulkar had claimed deduction of tax under Section 80RR of the Income Tax
> Act. The section states that a person can claim tax deduction if he is a
> playwright, artist, musician, actor or sportsman and the income for which
> deduction is claimed is derived by him in the exercise of his profession.
>
> When the assessing officer asked Tendulkar to explain the nature of his
> profession, the master blaster submitted that "he is a popular model who acts
> in various commercials for endorsing products of various companies". He
> further stated that the income derived by him from 'acting' had been
> reflected as income from "business and profession" whereas income from
> playing cricket was reflected as "income from other sources" since he is a
> non-professional cricketer. Tendulkar explained that the claimed deduction in
> tax was from the exercise of his profession as an 'actor'.
>
> The assessing officer rejected Tendulkar's claim and looked up the dictionary
> for the meaning of the term 'professional'. "It could be correct to say that
> playing cricket is the source of his livelihood and is therefore his
> profession," the officer observed, adding that "if Sachin is not a cricketer,
> then who is a cricketer?" He noted that Tendulkar had received remuneration
> for providing a wide variety of services to these companies. The various
> activities mentioned in the agreement with these companies had nothing to do
> with his claim of being an actor. Therefore, the officer said, his claim was
> not justified. Tendulkar has an agreement with these companies for the use of
> the name, photo, original voice, clothing, footwear, playing product
> spokesman, personal and media appearances.
>
> "It is true that while appearing in ad films Tendulkar would have to dress in
> a certain way and would have to follow the script suggested by the director.
> However, that does not make him an actor. In all the advertisements in which
> he appears, what is highlighted is his personality as a cricketer. It is
> important to note that the company that wants Tendulkar to endorse its brand
> uses him because he is Sachin Tendulkar, the cricketing legend," the officer
> noted.
>
> After his claim was rejected, Tendulkar submitted that he should be
> considered an 'artist' for the purpose of Section 80RR. He submitted that the
> meaning of 'artist' be read along with the several clauses of the endorsement
> agreements. However, the CIT-A did not buy this argument. He ruled:
> "Tendulkar is primarily involved in playing cricket and irrespective of
> whether he is a professional or not, it cannot be disputed that his
> profession is playing cricket. Tendulkar is not being paid for his activities
> as an actor or his performance as an artist. The nature and quality of his
> acting or performance as an artist would never have resulted in the contracts
> and payments made out to him."
>
> Tendulkar appealed against this ruling to the tribunal. An earlier ruling by
> the tribunal allowing tax deduction to actor Amitabh Bachchan helped his
> case. In 2004, the tribunal had ruled that the income derived by Bachchan as
> a host of TV show Kaun Banega Crorepati (KBC) was liable for deduction of tax
> under Section 80RR because he used his skills as an artist in the show.
>
> Asha Vijayaraghavan, judicial member of the tribunal, and R.K. Panda,
> accountant member, ruled: "While appearing in advertisements and commercials
> Tendulkar has to face the lights and camera. As a model he brings to his work
> a degree of imagination, creativity and skill to arrange elements in a manner
> that would affect human senses and emotions and to have an aesthetic value.
> No doubt, being a successful cricketer has added to his brand value as a
> model. But the fact remains that he has to use his own skills, imagination
> and creativity. Every sportsman does not possess that degree of talent or
> skill or creativity to face the lights and camera. The income received by him
> from modeling and appearing in TV commercials and similar activities can be
> termed as income derived from the profession of an artist."
>
> Tendulkar had also claimed deduction of Rs 57,969 towards staff welfare
> expenses that included expenses incurred on tea and snacks provided to his
> staff, Rs 50,000 each on account of entertainment expenses and telephone
> expenses and Rs 1,42,824 on account of car expenses. However, the tribunal
> dismissed these claims saying that the use of telephone, car and food was for
> him and his family.
>
> This is one act where the man who holds almost all the batting records in
> cricket has outdone himself.
>
'Stash-in' could be a better name, but he's god in batting :)
> __._,_.___
