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| indiantelevision.com's Media, Advertising &
Marketing Watch |
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| Star to put HLL ads back on air |
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The Indiantelevision.com
Team
(6 September 2002 7:15 pm) |
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MUMBAI: A day after the other big broadcasters
like Zee and Sony did it, Star India too, followed suit. Star India
said that though no signed deal was in place yet with Hindustan Lever,
all clients had agreed to pay the contentious 5 per cent service tax
on ad billings.
Star India ad sales head Raj Nayak said: "All clients have agreed
to pay and will be on air as soon as we can put them on." Referring
to HLL, Nayak said: "Star does not have a signed deal with HLL and
will negotiate with them to pay service tax when a new deal is done.
We stand firm that we will follow the IBF-ISA-3AAAs-of-I agreement
to air only spots of clients who pay service tax."
A Star India spokesperson had been quoted yesterday as saying that
all the advertisers had agreed to the pay the 5 per cent service tax,
except for HLL, Colgate and Pepsi, with whom negotiations were still
going on. Well, these negotiations appear to have resulted in Star
getting Colgate and Pepsi to bend but not so HLL, which has been consistent
in its stand that it follows the Indian Society of Advertisers' line
that advertisers are willing to accept billing requirements which
show service tax separately so long as the total cost payable remains
within the agreed rate. For HLL, "the agreed rate" has meant that
the service tax be kept out of the ambit of its negotiations.
Not surprising really considering that at Rs 1.5 billion, HLL's annual
TV ad spend is streets ahead of any other advertiser. By blacking
out HLL, Star TV was losing Rs 2 million every day, reports said.
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Sony,
Zee blink on service tax issue, Star stands firm
Lever,
Colgate ads off air on main satellite channels over service tax
issue
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