MAM
Lever, Star strike deal; HLL ads to be back on air soon
MUMBAI: The country’s largest advertiser Hindustan Lever Ltd (HLL) and lead broadcaster Star India have resolved their differences over ad rates. Though the deal is still to be inked, the two have reached in-principle agreement, Star confirmed to indiantelevision.com.
Attempts to contact Mindshare Fulcrum (which manages the HLL account) head Vikram Sakhuja for his comment on the development were to no avail.
In the end, it looks as if the double burden of not having a presence on the most powerful cable and satellite network, Star as well as on the terrestrial network Doordarshan, proved too much for HLL.
The sticking point till now on the issue of the eight per cent service tax has also been resolved in Star’s favour, it is learnt. Star officials have not commented on this aspect however, except to say that the negotiations that had been going on since 1 August have finally reached a satisfactory conclusion.
As reported in the Economic Times, it was over the service tax issue that HLL lost the sponsorship rights to the India-New Zealand-Australia cricket series starting 8 October. When DD first signed the deal with the sponsors, unlike other private channels, it was exempt from service tax. But in late July, the government issued a circular that henceforth Prasar Bharti will also be subjected to the tax with retrospective effect from 1 April.
DD, which has exclusive telecast rights of the series for India, immediately directed its three main sponsors — Pepsi, Hero Honda and Lever — and five associate sponsors — Perfetti, Castrol, Maruti, Pidilite and LG — to cough up the eight per cent service tax over and above the Rs 42.5 million and Rs 32 million that the main sponsors and the primary sponsors, respectively, had individually paid.
While others paid up, HLL refused to play ball. It was after this that DD cancelled HLL’s sponsorship rights.
Brands
Jubilant FoodWorks faces Rs 47.5 crore GST demand, plans appeal
Tax authorities flag alleged misclassification of restaurant services
MUMBAI:Â 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.
