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8% service tax on ad revenues now effective
MUMBAI: It was an announcement made in finance minister Jaswant Singh’s 28 February. But it has just come into effect.
The service tax on advertising spends on television, which was increased from five per cent to eight per cent in Singh’s 2003-2004 budget proposals, is effective as of yesterday.
The Rajya Sabha (Upper house of Parliament) only recently cleared and became effective vide a notification issued yesterday (14 May 2003).
The notification No. 4/2003-Service Tax was introduced in January this year as part of the budget proposals. It was only in mid-2002 that the five per cent service tax rule became applicable.
Effectively, every channel stands to lose an additional three per cent in ad sales revenue at a time when the conditional access bogey is already sending alarm bells ringing across the television scenario.
However, there is some relief in the fact that service providers can claim credit for input costs. This will benefit them in the long run as the industry constituents won’t have to face ‘dual taxation’ burden. For instance, broadcasters will not have to pay for certain costs incurred by the production houses since the production houses have already factored for them. Similarly, clients and ad agencies can claim rebates for services which they provide to clients – such as telephones, faxes, production costs of creatives, amongst others.
The issue of payment of service tax has always been a contentious issue and created a rift among the advertising community and broadcasters earlier too. The broadcasting industry has held that the service tax, being indirect in nature, would have to be borne by the end-user, namely the advertiser. Ad agencies, too, have tried to push the burden to advertisers who have refused to bear the same. Advertisers have tried to push the burden on ad agencies – asking them to toe the line at the risk of losing the account or business.
The advertising community has always contended that the extra burden would add to its costs and have an adverse impact on total advertisement spend by the industry.
NEW DELHI: Hamdard Laboratories gathered a cross-section of India’s achievers in New Delhi on Friday, handing out the Hakeem Abdul Hameed Excellence Awards to figures who have left their mark across healthcare, education, sport, public service and the arts.
The ceremony, attended by minister of state for defence Sanjay Seth and senior officials from the ministry of Ayush, celebrated individuals whose work blends professional success with a sense of public purpose. It was as much a roll call of achievement as it was a reminder that influence is not measured only in profits or podiums, but in people reached and lives improved.
Among the headline awardees was Alakh Pandey, founder and chief executive of PhysicsWallah, recognised for turning affordable digital learning into a mass movement. On the sporting front, Arjuna Awardee and kabaddi player Sakshi Puniya was honoured for her contribution to the game and for pushing women’s participation onto bigger stages.
The cultural spotlight fell on veteran lyricist and poet Santosh Anand, whose songs have echoed across generations of Hindi cinema. At 97, Anand accepted the honour with characteristic humility, reflecting on a life shaped by perseverance and hope.
Healthcare honours spanned both modern and traditional systems. Manoj N. Nesari was recognised for strengthening Ayurveda’s place in national and global health frameworks. Padma shri Mohammed Abdul Waheed was honoured for his research-backed work in Unani medicine, while padma shri Mohsin Wali received recognition for his long-standing contribution to patient-centred care.
Education and social development also featured prominently. Padma shri Zahir Ishaq Kazi was honoured for decades of work in education, while former Meghalaya superintendent of Police T. C. Chacko was recognised for public service. Goonj founder Anshu Gupta received an award for his dignity-centred rural development initiatives, and the Hunar Shakti Foundation was honoured for empowering women and young girls through skill development.
The Lifetime Achievement Award went to former IAS officer Shailaja Chandra for her long career in public healthcare and governance, particularly in the traditional systems under Ayush.
Speaking at the event, Hamdard chairman Abdul Majeed said the awards were a tribute to those who combine excellence with empathy. “These awardees reflect Hakeem Sahib’s belief that healthcare, education and public service must ultimately serve humanity,” he said.
Minister Seth struck a forward-looking note, saying India’s young population gives the country a unique opportunity to become a global destination for learning, health and wellness by 2047.
The ceremony also featured the trailer launch of Unani Ki Kahaani, an upcoming documentary starring actor Jim Sarbh, set to premiere on Discovery on 11 February.
Instituted in memory of Unani scholar and educationist Hakeem Abdul Hameed, the awards have grown into a national platform that celebrates those building a more inclusive and resilient India. For one evening at least, the spotlight was not just on success, but on service with substance.
