May 02--Almost 80% of advertisements across television channels were dropped on Wednesday because of a dispute between broadcasters and media buying agencies over billing, which may cost the industry some Rs.40 crore a day.

"The drop in advertising is significant except with those agencies and advertisers that are willing to move to tax-compliant practices," said Shailesh Shah, secretary general of the Indian Broadcasting Foundation (IBF) grouping of TV channels.

The broadcasters locked horns with media agencies over billing practices after the TV stations got notices from the income-tax department for non-payment of tax deducted at source on the 15% agency commission shown on the bills presented to the media agencies by broadcasters. The latter have been suggesting a switch from the existing gross billing system to a net billing system.

Gross billing is the value of the bill, including the 15% agency commission. Net billing is the value of the bill minus the commission. read more http://investing.businessweek.com/research/markets/news/article.asp?docKey=600-201305020001KRTRIB__BUSNEWS_58896_49978-1