Bengaluru: The Bangalore Turf Club (BTC) now faces a dispute on the taxation front. The club has been issued a notice by the Commercial Tax Department asking why it has remitted only Rs. 9.77 crore as against Rs. 44.40 crore of Goods and Services Tax (GST) it has claimed was due for July.
The department argues that though the club had to pay GST on the full amount collected from tickets sold, it has remitted GST only on the commission charged. The club, however, contests this calculation and says that it has paid tax as per the Act.
The BTC which reported a turnover of close to Rs. 2,000 crore in 2016-2017 until now collected 10 per cent as commission. Of this, it paid the State government 4 per cent and kept 6 per cent for administrative expenses.
However, post-GST, the tax structure has changed. In a letter to the BTC, the Commercial Tax Department has said that the service provided by a race club by way of totaliser is subsumed as principal supply for which the club has to pay GST at the rate of 28 per cent, with full input tax credit.
