IBF-AAAI spat almost resolved, ads to be back on air today

After pulling off advertisements from television channels over new billing method arising out of taxation issue, broadcasters and advertising agencies are stepping up efforts to end the impasse.

Industry body Indian Broadcasting Foundation (IBF) and Advertising Agencies Association of India (AAAI) said they were in talks to resolve the matter at the earliest.

Going forward, AAAI is to approach CBDT to obtain a circular by May 31, 2013 that broadcasters need not deduct TDS against agency commission. If they succeed, then the current system of gross basis will continue.

In case such a clarification is not obtained by May 31, 2013, then all commercial discussions will take place on net value.

All ROs and billings will henceforth come with the legend, “As per established industry practise between agencies and advertisers, advertising agency will charge an amount not exceeding Rs 100000 plus taxes to the advertiser, including for the services provided by them to the advertiser”.

AAAI has also requested IBF to consider extending the date of getting the circular for CBDT for 120 days in case it doesn’t get it by May 31.

Additionally, broadcasters might send revised bills to agencies for April.

Source: http://cablequest.org/news/national-news/item/2425-ibf-aaai-spat-almost-resolved,-ads-to-be-back-on-air-today.htmlSource: http://cablequest.org/news/national-news/item/2425-ibf-aaai-spat-almost-resolved,-ads-to-be-back-on-air-today.html