Broadcasters to commence net billing for ads to avoid TDS

Broadcaster will start sending net bill henceforth to media agencies for television commercials carried on channels. These will replace the gross bills which used to be the norm. 

This move comes following an Indian Broadcasting Foundation (IBF) decision on the matter. A month or so back, certain broadcasters received notices from the income tax department on gross bills not having a deduction of TDS on agency commissions. The IBF then decided to move over to the net billing system from the first billing cycle of April, something which the Advertising Agencies Association of India (AAAI) opposed. The IBF then told its members to defer the dispatch for another week to allow the IBF, the AAAI and the Indian Society of Advertisers (ISA) to hammer out a solution. Somehow, the three could not meet last week. 

And the IBF sent out another circular on Friday (19 April), advising its members to send out net bills on 22 April. 

While broadcasters have already decided to go ahead with the issuance of net bills on 22 April, AAAI appeared to be oblivious to this development. It says there has been no communication from the IBF that broadcaster members would be dispatching net bills tonight. AAAI has suggested a joint association meeting but that has not materialised yet.

Source: http://cablequest.org/news/national-news/item/2257-broadcasters-to-commence-net-billing-for-ads-to-avoid-tds.htmlSource: http://cablequest.org/news/national-news/item/2257-broadcasters-to-commence-net-billing-for-ads-to-avoid-tds.html