MAM
Indian ad market projected to grow at 13.9 % by 2017: Carat
MUMBAI: Dentsu Aegis Network’s global media agency, Carat, has forecast global advertising market will touch USD 548.2 billion in 2016, accounting for a 4.4+ per cent year-on-year growth, propelled by digital space, while India is expected to grow at over 13 per cent y 2017.
In Asia Pacific, the buoyant Indian advertising market continues to lead growth prospects of 12+ per cent in 2016 and 13.9+ per cent in 2017, the Carat ad spend report 2016 said.
India continues to be the fastest growing economy where all traditional media platforms still show “positive growth”. Holding the highest share of ad spend of 38.5 per cent in 2016 and 38 per cent in 2017, TV is forecast to grow by 12.3+ per cent in 2016 and 12.5+ per cent in 2017, driven by investment from FMCG brands and e-commerce companies, the report stated.
“We also anticipate that given the tailwinds through the macro-economic factors, GST and other reforms, 2017 will have an even better growth of 13.9 per cent (for India),” Dentsu Aegis Network Chairman and CEO, South Asia, Ashish Bhasin said, commenting on the report.
Dwelling further on the report Bhasin elaborated that Carat expected the digital growth to be about 31.5 per cent in 2016 and to accelerate to nearly 40 per cent in 2017, while mobile will drive digital growth.
“India will transform from a `Mobile First’ to a `Mobile Only’ market very rapidly, aided by better broadband penetration and drop in data costs. What is also unique about India is that all types of media, including print, still continue to grow, albeit at different rates,” he opined.
Based on data received from 59 markets across the Americas, Asia Pacific and EMEA, Carat reports a positive outlook for most regions with particularly robust growth in North America (5.0+ per cent) and strong recovery in Russia (6.2 + per cent), countering lower expectations in some markets.
The Carat report projects moderate growth for China where advertising spend is expected to increase by 5.7+ per cent in 2016 and 5.5+ per cent in 2017 as the market adjusts to a ‘new normal’ economic landscape, the report read.
Brands
Jubilant FoodWorks faces Rs 47.5 crore GST demand, plans appeal
Tax authorities flag alleged misclassification of restaurant services
MUMBAI: Jubilant FoodWorks Limited has landed in a tax tussle after receiving a GST demand of Rs 47.5 crore from the office of the additional commissioner of CGST and central excise in Thane, Maharashtra.
The order, issued under the provisions of the Central Goods and Services Tax Act, 2017, relates to an alleged incorrect classification of certain services under the category of restaurant services. According to the tax authorities, this classification resulted in a short payment of goods and services tax for the period between the financial years 2019-20 and 2021-22.
The demand includes Rs 47.5 crore in GST along with an equal amount as penalty, in addition to applicable interest. The order was received by the company on March 13, 2026.
In a regulatory filing to the BSE Limited and the National Stock Exchange of India Limited, the company said it disagrees with the order and believes its arguments were not adequately considered.
The company is preparing to challenge the decision and plans to file an appeal. It added that once the redressal process is complete, the demand is likely to be dropped.
Despite the sizeable figure attached to the notice, the company said it does not expect any material impact on its financials, operations or other activities.
The disclosure was signed by Suman Hegde, EVP and chief financial officer, who confirmed that the company received the order at 19:06 IST on March 13 and has already initiated steps to contest it.
The development places the quick service restaurant major in the middle of a tax debate that could hinge on how certain restaurant-linked services are classified under GST rules. For now, the company appears ready to take the matter from the tax office to the appeals desk.
