The INS issues best practices to encourage accurate reporting by publications in MRV

The Indian Newspaper Society (INS) has found that there are inaccuracies in the data reported in their Monthly Review Verification (MRV) that are uploaded by member publications every month. The report contains details of previous outstanding, current billing, payment receipt as well as current outstanding beyond the credit period of 60 days.

Based on this information, the INS takes action against agencies by issuing a disaccreditation notice against them if they are found to have arrears beyond the permissible limit of 5% of the outstanding amount. However INS has found several inaccuracies explained below.

1)     Bills/ Invoices delayed / not sent to the agencies but reported in MRV as outstanding.

2)     Payment received, yet shown as outstanding in MRV.

3)     The outstanding amount pertains to extra credit period time, as per the mutual agreement between the publication and the agency and are still being reported in the MRV system.

4)     Non deposit /filing of GST Return and thus denying the advertising agency the benefit of Input credit.

When disaccreditation notice is issued to agencies it severely impacts the revenue of other publications who are not allowed to accept ads from these agencies, hence INS cautions against wrong reporting of monthly data by member publications that results in the withdrawal of disaccreditation notice as it reflects poorly on the INS.

To avoid such errors in the future, the INS has advised:

1) To send the bills / VTS on time to enable the Agency to raise the bills to their clients for payments. Please note payment becomes due from agency 60 days from their receipt of bill. Not to show the outstanding in MRV until the bills/VTR are supplied to Agency.

2) In case the payments received from the Agency after the due date, then it may be reported under the “Late Payment” column of the MRVs.

3) In case of any dispute between the Client, Agency and Member Publication, the amount may be reported under the “Disputed Bill Amount” column until the matter is resolved.

4) If the Publication accepts PDCs from an Agency, it means that the credit period has been extended, therefore such amounts should not be reported under the MRV as outstanding amount.

5) The GST should be deposited and Return filed within the stipulated time period, as otherwise the agency will not be entitled to the Input credit.

d) The outstanding reported should only be that of INS Member Publications. Outstanding dues pertaining to other mediums like TV /Radio / events etc. should not be reported in MRV system.

7) It is also noticed that times the Publishers enter into agreements ( in case of Treaty / Deal with clients) with advertising agencies on discounted rates for specified business and non-fulfilment show this as outstanding amount. They are not able to provide RO’s, voucher copies etc for this and thus such activities cannot be part of MRV analysis.

 

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