The broadcasters, advertising agencies and the advertisers have been deliberating over the issue of who is going to take the brunt of the 5 per cent service tax levied by the Finance Ministry. The broadcasters had proposed to incorporate this 5 per cent service tax as part of the release order to advertising agencies. Advertising agencies would have passed the 5 per cent service tax to the advertisers. Most of the large advertisers who are part of Indian Society of Advertisers (ISA) have expressed reservations over it. To discuss this, ISA and Advertising Agencies Association of India (AAAI) representatives would meet on Wednesday 31st July, in Mumbai .
Senior AAAI executive confirmed the same to exchange4media. When contacted, a spokesperson of a large advertiser opined that it was unfair to pass this 5 per cent service tax burden on to the advertisers as he/she was already grappling with market shares and cost issues and confirmed that the meeting on Wednesday was an attempt to share and discuss these view points with advertising agencies. The broadcasters, advertising agencies and advertisers are keenly looking forward to this meeting so that this contentious issue gets resolved soon.