New stamp duty worries advertisement industry

   Print    Email

Email To		[Close]
		You must make entries in all fields
Your Email
Your Name
Send to Email
		Send

The Bombay high court did not give any relief to the advertising industry, which has filed a petition against new law which levies stamp duty on advertising-related contracts.

Earlier, there was no stamp duty on contracts entered into by advertising agencies with their clients and with the media companies. But in 2005, state government amended Bombay Stamp Act, and provided for duty on “all instruments related to advertisements in mass media for promotion of a product”.

Advertising Agencies Association Of India, Indian Society of Advertisers and Indian Newspaper Society alongwith a few others then filed the present petition, saying that the amendment was unconstitutional.

The main arguement against the amendment is that the constitution does not allow state governments to levy tax on advertisements in newspapers, radio, or TV. It falls in the union government’s domain.