Exemption from WHIT deductions for NewsPrint Media

[umairahmed]

"
<font color="blue">(16A) The provisions of section 153(1)(b) shall not be
applicable to the news print media services in
respect of the advertising services.”;
</font id="blue">"

As per the above change through Finance Act 20009, We cannot deduct 6% WHIT from the bills of news print media. But there is no definition of news print media is given in the act.

Do the fashion magazines, digests & cooking magazines meets the definition of news print media? or just the news papers falls under the definition of news print?

Please clarify

An early reply will be highly appreciated

Thanks,
Umair

[awaisaftab]

<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by umairahmed</i>
<br />
"
<font color="blue">(16A) The provisions of section 153(1)(b) shall not be
applicable to the news print media services in
respect of the advertising services.”;
</font id="blue">"

As per the above change through Finance Act 20009, We cannot deduct 6% WHIT from the bills of news print media. But there is no definition of news print media is given in the act.

Do the fashion magazines, digests & cooking magazines meets the definition of news print media? or just the news papers falls under the definition of news print?

Please clarify

An early reply will be highly appreciated

Thanks,
Umair




<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">

[awaisaftab]

<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by umairahmed</i>
<br />
"
<font color="blue">(16A) The provisions of section 153(1)(b) shall not be
applicable to the news print media services in
respect of the advertising services.”;
</font id="blue">"

As per the above change through Finance Act 20009, We cannot deduct 6% WHIT from the bills of news print media. But there is no definition of news print media is given in the act.

Do the fashion magazines, digests & cooking magazines meets the definition of news print media? or just the news papers falls under the definition of news print?

Please clarify

An early reply will be highly appreciated

Thanks,
Umair




<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">


Definition of term “News Print Media Services" is not provided in Income Tax Law. The two most common print media are newspapers and magazines. Thus magazines are not fall within the meaning of News Print Media Service. But it is the principle of law that the benefit of any ambiguity in law is provided to tax payers superior courts (Supreme Court and High Courts) in many of their verdict have given decision that unless and until an ambiguity in not clarified by regulatory bodies then the benefit of ambiguity will be available to tax payers or any other individual.

In the light of above discussion you may assume ambiguity in law and give the benefit of ambiguity to the magazines. But in my opinion the word "News" included in the term is added to give expression that only the newspapers are exempted. So under strict definition and on doing deep analysis of term we reach at point that the term News Print Media Services can only be used for newspapers. But there is still an ambiguity in the law because law makers have not defined the term. Hence the benefit of ambiguity can be provided to magazines. Secondly some news groups also publish magazines so they can misinterpret the terms and can mould the term to get benefit. Currently government department and advertising agencies are not deducting any tax on the share of newspaper while making payment for advertisement expenses.

Regards,

Awais Aftab

[umairahmed]

<font face="Book Antiqua"></font id="Book Antiqua">
Dear Awais,

Thanks for the reply.

I have started deducting tax from the payments to magazines & digests. However some of them are not agreed & saying that the other advertisers have discontinued to deduct withholding tax from July 2009. Means, the magazines like even cooking & fashion are being considered as newsprint.

Regards,
Umair Ahmed