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IBF: Net bills to be accepted starting May, 1, 2013
After an announcement from AAAI, early this morning, IBF has rolled out its own version on the agreement. Both the announcements include that 'the Ads are back on the television screens', which were off-air since May, 1, 2013. Below is the IBF press release.
Leadership from both, Advertising Agencies Association of India (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.