IBF writes to government seeking economic relief and rehabilitation package for broadcast sector

By: |
April 20, 2020 7:14 PM

IBF members’ also raise concerns regarding the payments which have not been received from BOC and other State government advertising agencies/advertisers

IBF has also requested the government for reduction in GST rate on digital services.IBF has also requested the government for reduction in GST rate on digital services.

In the wake of the COVID-19 outbreak, The Indian Broadcasting Foundation (IBF), has sought government’s support to deal with the economic crises in the television broadcast sector. According to NP Singh, president, IBF, complete cessation of production of television shows, cancellations of live sporting events and scheduled advertisements, advertisement bookings has reduced by 50%. Coupled with the fact that the advertising agencies/advertisers and distribution platform operators are also delaying their payments, the broadcast sector is facing the brunt of the slowdown.

“While we welcome the compliance and statutory relaxations granted by the Government in its latest notification of April 15, the broadcast sector is seeking a stimulus package from the government in the form of economic relief and regulatory flexibility so that all broadcasters especially the smaller businesses can be helped to get back on track,” he added.

IBF has also requested the government for reduction in GST rate on digital services (B2C), automatic refund of input credit and immediate processing and issuance of Lower withholding order (LTDS). IBF members’ also raise concerns regarding the payments which have not been received from Bureau of Outreach and Communication (BOC) and other State government advertising agencies/advertisers running in several hundreds of crores.

At the time of lockdown, the government notified print and electronic media including broadcasting, DTH and cable services” as one of the ‘essential services’. However, with employees unable to go to work because of commute restrictions and production schedules halted for programming across the sector, providing content and news to the viewers is posing a challenge to broadcasters.

“IBF has submitted a Standard Operating Procedure (SOP) on prevention/safety measures for organised, safe and sustainable re-start of content production, media operations, transmission and general office operations in the TV Broadcast Sector to the PMO, Niti
Aayog and MIB. The SOP will help the sector to move quickly towards normalcy and we certainly hope that the Government would consider it favourably,” Singh believes.

In its letter to Prakash Javadekar, Minister for Information and Broadcasting, IBF has made the following requests:

  1. Regulatory moratorium for the sector for at least next 18 months.
  2. Phased resumption of production activities.
  3. Extension of moratorium period for GST payment.
  4. Mandating Digital Payments of Subscription and Advertising dues to Broadcasters.
  5. Advisory to DPOs in respect of release of payment of subscription fees for the period upto 29th Feb 2020
  6. Waiver of Processing Fee and Temporary live uplinking fee for live sporting events for a period of one year from the resumption of normal business activities.
  7. Increase in time period of one year to two years for operationalisation of new channels which have been granted permission.
  8. Suspension of requirement of Performance Bank Guarantees in respect of channels sought to be launched for a period of one year.
  9. Waiver of Carriage Fee due to Prasar Bharati for 3 months (April, May and June) for FTA Channels on Prasar Bharati’s Free Dish Platform.
  10. Deferment of payment due to Prasar Bharati for Free Dish carriage by 31 March 2020 be deferred until July 2020.
  11. All pending refunds even exceeding Rs. 5 Lacs should be urgently processed.
  12. The 1st instalment of advance tax (due on 15 June 2020) should be done away with and taxpayers be allowed to pay the 2nd instalment (due on 15 September 2020) directly without any interest liability
  13. The due date for deposit of TDS for the months of March and April 2020 should be extended to 31 May 2020 without any interest liability.
  14. Extension /waiver of permission for FX payments for foreign satellite transponder hiring.
  15. Lower rate of TDS from 10% to 2% on subscription revenues.
  16. Payment of stamp duty on agreements should be deferred upto expiry of ninety (90) days’ from the date of lifting of nation-wide lockdown.
  17. Allow discharge of GST reverse charge obligation through GST input credit rather than paying in cash.
  18. Extend all existing stay of income tax demand for next 6 months without any new hearing.

Read Also: AAAI reaches out to government for business continuity; sends recommendations to help advertising agencies

Follow us on Twitter, Instagram, LinkedIn, Facebook

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

BrandWagon is now on Telegram. Click here to join our channel and stay updated with the latest brand news and updates.

Next Stories
1CSK emerges as the force behind IPL 2020’s social media buzz: Wavemaker IPL Mesh report
2Healthcare startup Wellversed ropes in Yuvraj Singh as brand ambassador
3Mohit Joshi elevated to CEO, Havas Media Group