It’s pretty safe to say that the sport of Formula One will not be looking to revive the Indian Grand Prix any time in the near future, as the government taxes Formula 1 World Championship Limited (FOWC) for income from the event. The matter was heard by the Supreme Court of India.
The decision has been made to tax the FOWC for the income from the India Grand Prix held from 2011 to 2013. The case still needs to be calculated by an assessing officer to decide the tax rate by the government, but it is estimated to be 40% with additional interest added to the total.
The case revolved around whether or not the Buddh International Circuit could be considered a permanent establishment for business performed by the sport of Formula One. As such, Formula One would be responsible for paying taxes on business income. This includes licensing fees paid to FOM for the use of trademarks in promotional material.
There are no current estimates on the total sum that FOWC will have to pay in taxes to the Indian government at this time.
