New Delhi: Jaypee Sports International (JPSI), organisers of the Formula One Indian Grand Prix, on Wednesday asserted that it has full support of the Indian government in hosting the inaugural race event and if required they are ready to pay the customs duty on the equipment temporarily imported for the three-day affair.
The JPSI clarification comes in the wake of a media report claiming that it will need to pay duty of Rs.600 crore or more on the imported equipment as the government is unlikely to grant tax exemption to the racing event.
JPSI managing director Sameer Gaur, however, said that they have already got the approval of the customs department for the Oct 28-30 race at Greater Noida near here. He added the equipment's estimated worth is around Rs.150 crore and the duty on it will be Rs.8 crores.
"JPSI has full support of the government, the sports ministry and the customs department for the F1 event scheduled for October this year. We have an in-principle approval from the customs department for creating a customs bonded area for F1 equipment that will be temporarily imported to India," said Gaur in a statement.
"If required, as per the law of the land, JPSI will pay customs duty and taxes etc. for the temporary import of equipment. The estimated value of this equipment is about Rs.150 crore and the final duty payable on this will be approximately Rs.8 crore."
The allotment of the custom bonded area is a standard practice in Formula One. The area allows F1 cargo to land and taken to the venue and is flown out of the country after the race.
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