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Tax Deductions On Various Pools At Btc Tote

By Mad Max | 01-Jul-2017

Following are the rates of deductions on BTC tote from today.

WIN 26%
Place 28%
SHP 30%
THP 30%
Forecast 35%
Quinella 35%
Trinella 35%
Treble Pool 45%
Jackpot Pool 45%

Since GST is 28% it is difficult to understand why 2% less on Win Pool? Why the Club instead of adding their commission, reduced 2%..?

From Place Pools BTC added 28+2% commission.
FC, QN, TNL added commission is 7%

From Treble Pool and Jackpot they added 17% commission.

The most important thing is why the club reduced 2% from the Whin Pool whereas the GST fixed is 28%? No Club can do it on their own, when the matter is related to the Tax Department/the central government. Then why this?

I think the club is hiding something from the racing public. Most probably they might have got an assurance from the government/tax department that the GST on horseracing will be reduced to 18%. And the Club is hiding this from the public and taxing the public to the optimum so that they need not do any revision or any reprieve to the racing public when they get the clarifications from the Tax Tribunal.

I reserve my opinion, though I strongly believe the tax cut above published by the Club is based on some assurance from the higher authorities, and it can be more fully explained as follows:-

WIN: GST 18% + 8% Club Commission = 26%
Place: GST 18% + 10% Club Commission = 28%
SHP: GST 18% + 12% Club Commission = 30%
THP: GST 18% + 12% Club Commission = 30%
Forecast: GST 18% + 17% Club Commission = 35%
Quinella: GST 18% + 17% Club Commission = 35%
Trinella: GST 18% + 17% Club Commission = 35%
Treble Pool: GST 18% + 27% Club Commission = 45%
Jackpot Pool: GST 18% + 27% Club Commission = 45%

Can the Horse Talkers agree to my view point?
Post Your reply

4 Replies

Mad Max said ...

04-Jul-2017
@ Tarun
@ Raja_456

The Tax rates furnished in the title thread is DITTO THE SAME published by BTC on last Saturday (1/7/17) on CCTVs.

Raja_456, other website has written in their website the commission is 4%, so you reproduced it here. In fact there is an article in Indiarace, available under NEWS AROUND, wherein Mr. Arvind Raghavan, a member of BTC, said GST will have an adverse effect on racing. “Earlier in the dividends distributable back to the punters, it was Rs 87 for every Rs 100. Under the GST regime, it’s going to be Rs 74 for every Rs 100.

And he was absolutely correct in predicting the GST 26% at GST, that is for WIN ONLY. For other pools the rates are mentioned in the title thread. Raja you are totally missed the correct calculation as also the other website.

Raja_456 said ...

03-Jul-2017
BTC (and all clubs) is deducting 4 % on win pool and adding GST @ 28 % it totals to 32%.

If your total investment is Rs.100 then it includes 32 % deduction.

i.e. Investment - Rs.75.757 and 32 % (GST + commission) is Rs.24.243 = Rs.100.

A lay man calculates the deduction directly on the total investment and it reflects as 24.243%.

Anyway the new structure hasn't effected the collection at Bangalore much. The total collection on Saturday was 9.6 crores and Sunday was over 10 crores.

Tarun said ...

03-Jul-2017
Kindly conform your source of 26% for win as GST. Also what have other clubs done.

Confused P said ...

01-Jul-2017
A valid doubt, especially with tax for win, but even with the current structure I think things look ok especially consider the dividends today.