Regional Sports Club’s Request for Building Tax Exemption Rejected

Recently, the application of the Regional Sports Club (RSC) requesting building tax exemption was rejected by the Kerala State Government.

The RSC operates on the Kerala State Sports Council’s (KSSC) land at Kadavanthra, Kochi. It was asserted by the club that as per government policy, “sports is part of education” and since the club is an educational institution and a charitable organization, it is eligible for tax exemption.

After perusal of the necessary documents, and considering details such as membership fee charged, number of members, rent collected for accommodation provided, etc., the state government concluded that RSC is not entitled to get tax exemption. Rejecting its application and claims, the state revenue department ordered the RSC to pay tax to the tune of Rs. 60 lakhs.