Results are out! Find what you need...fast. Get quick advice or join the chat
Hey there Sign in to join this conversationNew here? Join for free

Indian GP pushing it's luck?

Announcements Posted on
Live webchat: Student Finance explained - on TSR from 2 - 3pm 17-09-2014
Got a question about Student Finance? Ask the experts this week on TSR! 14-09-2014
    • Thread Starter
    • 0 followers
    Offline

    ReputationRep:
    Just read this story on Autosport (it's a week old I know), that India is looking to tax the drivers and teams 1/19th of their yearly earnings for their weeks stay in India.

    Surely if they keep acting like this the teams are bound to pull the plug eventually?

    http://www.autosport.com/news/report.php/id/94871
    • 0 followers
    Offline

    ReputationRep:
    Doesn't this all extend from the Indian government classing F1 as "entertainment", rather than a "sport"? Therefore, they tax it heavily. If this continues, I reckon this will be the first and last Indian grand prix.
    • 6 followers
    Offline

    ReputationRep:
    This news is quite old. They've negotiated it and the state has come to the conclusion that they are exempt from that tax.
    • 0 followers
    Offline

    ReputationRep:
    (Original post by chaz1992)
    This news is quite old. They've negotiated it and the state has come to the conclusion that they are exempt from that tax.
    Are they? The article seems to suggest otherwise (while referencing that the organisers offered to pay all customs duties). I remember seeing the stories about the organisers paying the customs/import tax, but this does seem to be a new story:

    (Original post by Autosport)
    "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."
    • 6 followers
    Offline

    ReputationRep:
    (Original post by thomasp)
    Are they? The article seems to suggest otherwise (while referencing that the organisers offered to pay all customs duties). I remember seeing the stories about the organisers paying the customs/import tax, but this does seem to be a new story:
    Again, F1 teams would never go to India if there was such a taxation. I think it was on pitpass late last week that F1 teams have been made exempt. F1 is all about money, aside from racing. Midfield teams look to finish as high up the contructors as they can to get more money. This issue has been sorted out.

    I'll see if I can find the source...

    http://news.bbc.co.uk/sport1/hi/form...e/14916208.stm
    • 0 followers
    Offline

    ReputationRep:
    Looking at the article dates (14th Sept for BBC, 27th Sept for Autosport), it seems the issue has flared up again. After reading the PlanetF1 article (http://planetf1.com/driver/3213/7176...ms-row-defused), it seems to me that only the customs bill has been sorted, not the 1/19th of earnings tax bill.

    The BBC article says "JPSI have now offered to pay the costs of teams releasing their equipment from customs ahead of the race on 30 October." - that's not all of what they have to pay though, that's not covering the 70% corporation tax.
    • 6 followers
    Offline

    ReputationRep:
    (Original post by thomasp)
    Looking at the article dates (14th Sept for BBC, 27th Sept for Autosport), it seems the issue has flared up again. After reading the PlanetF1 article (http://planetf1.com/driver/3213/7176...ms-row-defused), it seems to me that only the customs bill has been sorted, not the 1/19th of earnings tax bill.

    The BBC article says "JPSI have now offered to pay the costs of teams releasing their equipment from customs ahead of the race on 30 October." - that's not all of what they have to pay though, that's not covering the 70% corporation tax.
    It also says:

    Jaypee Sports International (JPSI) have now offered to pay any customs duties and taxes if required.

    Red Bull were in India doing a demonstration run which is classed as 'entertainment', however they didn't have to pay the tax.

Reply

Submit reply

Register

Thanks for posting! You just need to create an account in order to submit the post
  1. this can't be left blank
    that username has been taken, please choose another Forgotten your password?
  2. this can't be left blank
    this email is already registered. Forgotten your password?
  3. this can't be left blank

    6 characters or longer with both numbers and letters is safer

  4. this can't be left empty
    your full birthday is required
  1. By joining you agree to our Ts and Cs, privacy policy and site rules

  2. Slide to join now Processing…

Updated: October 5, 2011
New on TSR

Writing your personal statement

Our free PS builder tool makes it easy

Article updates
Useful resources

Quick link:

Unanswered motorsport threads

Groups associated with this forum:

View associated groups
Reputation gems:
You get these gems as you gain rep from other members for making good contributions and giving helpful advice.