Most of TV Channels Stopped Showing Commercials ADs. Uday Shankar, CEO of Star India, says the broadcaster has been negotiating with advertising agencies for almost two months.

He Said  “We will not run any commercials tomorrow because the advertising agencies are not agreeing to the net billing system,”.

“We have been negotiating with the agencies for nearly two months now. But it is a standoff now.”
“So we decided to clean up the system,” Shankar said. “We will now raise a bill for Rs.85 (and not Rs.100 as before) and get paid Rs.85 only. It will be a transparent system.”
“I am not saying that all the ads will be switched off tomorrow, but if they do not find a solution, we will be left with no choice but to go without advertising,” Shah said.
The total tax liability runs into more than Rs.1,000 crore due over the last three years. At least 30 channels in Delhi, Mumbai, Chennai and Kolkata have got the notices and Shah expects more to receive them.
He also said that the order didn’t reflect reality: “Channels do not receive this money nor do they pay this amount to the agency. We pay tax on what we receive. The tax order on us is ridiculous.”
A top news broadcasting company executive said: “The agencies are asking for more time. One, we do not understand what their issue really is in making this change. Secondly, why should we take on a tax burden just to do them a favour? It’s crippling for the industry.”

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