International IBF to take up service tax issue with government

IBF to take up service tax issue with government

Author | NULL | Monday, Jan 01,1900 7:23 AM

IBF to take up service tax issue with government

At the annual general meeting of the apex body of broadcasters held in Delhi yesterday, the Indian Broadcasting Foundation, decided to push the government to defer the levy of 5 per cent service tax for a period of five years. IBF has set up a high powered panel to take up the issue of service tax with the government and will be presenting their case to the Finance minister.

Headed by Anil Baijal, CEO, Prasar Bharati and president of IBF, an industry delegation comprising Star TV CEO, Peter Mukherjea, Sony TV CEO, Kunal Dasgupta, Zee TV chief, Sandeep Goyal, Sahara TV’s Mahesh Prasad and Aaj Tak’s G Krishnan would be making a presentation to the finance minister soon on why the broadcasting industry is opposed to the service tax.

The delegation would also approach the information and broadcasting minister Sushma Swaraj to plead its case.

Though a proposal to raise advertising rates by 5-10 per cent has been floating around in the industry, the IBF made it clear that it would have to be an individual decision at each company’s level.

The taxable service, according to the government, is any service provided to a client by a broadcasting agency or organisation in relation to broadcasting. This has been interpreted by the advertising industry, according to the sources, as it being exempt from the service tax, which should be paid by broadcasters.

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