Ads back on telly as IBF, AAAI resolve differences on Net billing

03 May,2013

By A Correspondent

 

Advertisements will be back on Indian television as the Indian Broadcasting Federation (IBF) and Advertising Agencies Association of India (AAAI) resolved their differences on the net billing issue in a meeting that ended late last night (May 2).

 

Facing tax liabilities on account of non-deduction of TDS on agency commission, broadcasters had stopped airing ads as advertising agencies did not agree to their proposal to move to net billing. While the Advertising Agencies Association of India (AAAI) continues to maintain that the tax demands made on some broadcasters are bad in law, it has committed that it will attempt to get a circular from CBDT that clarifies that broadcasters like other media  are not required to deduct TDS from agency commission since broadcasters do not pay the agency commission.

 

In a meeting that lasted over seven hours, representatives from IBF and AAAI arrived at a solution that met the needs of broadcasters and at the same time assured agencies of their legitimate earnings. Consequently, ads will be back on air starting today (May 3).

 

Arvind Sharma

Says Arvind Sharma, President AAAI, “We are happy that we have resolved the impasse.  We ensured that both broadcasters’ and agencies’ business interests are protected.  We are happy that the solution we have found will meet the needs of our member agencies in terms of their transactions with their clients.” The IBF spokesperson wasn’t available for comment at the time of writing though informally they communicated to this correspondent that all was now well.

 

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One response to “Ads back on telly as IBF, AAAI resolve differences on Net billing”

  1. Himanshu Agarwal says:

    So as I understand, instead of the broadcasters (IBF) it
    will be the agencies (AAAI) who will appeal against the I-T department’s order and get a circular out from CBDT.

    To raise an appeal and till the time it is granted and
    notified vide a circular, who makes an upfront payment to the I-T department, IBF or AAAI?

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