AAAI reaches out to Govt for key support
By M4G Bureau - April 16, 2020
The association has made a representation to the I&B Ministry
Advertising agencies are coming under increasing pressure on their respective businesses in the wake of the extended lockdown. Bringing this situation to the attention of the Government, Ashish Bhasin, President, Advertising Agencies Association of India (AAAI) has sent a detailed set of recommendations Union Minister of Information & Broadcasting Prakash Javadekar.
Commenting on the key assertions made, Bhasin cited, “What we have asked the Government is very reasonable. We want principally money that is owed to us by way of I-T and GST refunds, and dues from Government and PSUs for our advertising bills to be settled immediately. We have also said that any payment made to us should not suffer any TDS deduction going forward, since there is unlikely to be any significant profit for the year. Further we have sought a direction to banks and our debtors that they provide the much needed cashflow to pay salaries and meet other essential expenses, etc.
“These do not lead to any revenue loss to the Government. They just need to show a kind heart. The timely help they will provide actually is the help they are providing to the people of India. Advertising is a critical input that can provide a ripple effect in reviving many sectors of the economy,” he said.
One other recommendation made is to treat advertising expenses as an investment and have this cost amortised over the next three years. AAAI believes this will encourage larger advertising outlays which will help revive the economy faster. In the same vein, AAAI also suggested that advertising expenses could be given weighted deduction while computing taxes. The suggestion was that every Rs 100 spent on advertising, should be treated as Rs 200, while computing the taxable income.
AAAI hopes that the Government looks at the requests made with full earnest and urgency.