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Change in TDS norms hit TV Channels

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Change in TDS norms hit TV Channels

Indian broadcasters are caught in a tizzy over the two new taxation rules — P & L account tax system for foreign satellite companies and re-introduction of section 194-H, which is applicable to all television channels and air-time sellers.

They have approached the CBDT and sought tax deduction at source rates applicable to the foreign telecasting companies. And their problems seem further compounded as TDS on the 15 per cent commission paid by advertisers to the Indian agents of foreign telecasting companies and the advertising agencies has been re-introduced.

The Indian Broadcasting Foundation has taken up these issues with CBDT. Sources say CBDT is looking into both issues. IBF is likely to make a representation to CBDT on the 15 per cent commission issue soon.

According to IBF sources, the FTCs would want TDS rates to be fixed by CBDT and the year ending tax deduction rate lowered to the 30 per cent level applicable on domestic companies.


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