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IBF members agree to block HLL ads; Service tax issue comes to fore again

02-September-2002
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IBF members agree to block HLL ads; Service tax issue comes to fore again

In a major development all IBF members agreed to block HLL ads owing to non resolution of payment of 5% service tax imposed by the government. Our readers would remember that the government had imposed service tax of 5% on all broadcasters. The issue has been simmering for quite some time now with the broadcasters first trying to convince the goverment to drop the law and then trying to pass the tax on to the advertisers. SUN TV is the only network which has so far managed to successfully pass on the tax to the advertiser owing to its complete dominance in the Southern market. Other broadcasters however have found it hard to extarct the extra penny out of the client's pocket.

Talks for resolving the matter are currently on and sources say that some solution might be reached soon.

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