Now, IBF will accept net bills, advertisements back on TV
According to a press release issued by Indian Broadcasting Foundation (IBF) advertisements are back on TV channels from 1 May 2013.
Zee Media Bureau
New Delhi: According to a press release issued by Indian Broadcasting Foundation (IBF), advertisements are back on TV channels from 1 May 2013, with broadcasters and advertising agencies reaching an agreement on ways to tackle the billing row arising out of taxation issues.
Over months now, IBF has been in discussions with AAAI for mutual agreement on the process of invoicing. The procedure started from 1 May 2013, as media buying agencies started to accept net bills from broadcasters. As a consequence, broadcasters have started carrying advertisements again.
Leadership from both, AAAI and IBF, along with yeoman-help from their CFOs and tax experts arrived at a way forward that aligns with what is correct and makes life easier for all concerned.
Broadcasters and media buying agencies have been hogging headlines for the last few days.
Broadcasters had stopped carrying advertisements on their channels, as they did not see agencies realizing the seriousness of the issue at hand. Broadcasters have been asked to pay taxes on a practice imposed on them by media buying agencies. The amount in question does not get transacted between broadcasters and agencies, and accordingly, should not result in tax implications for broadcasters. On the same principle, this non-transacted amount should not appear as such on broadcaster-invoices either.
After much ado, advertisements are back, net billing is established and advertisers are happy to see their products and services back on television.