If the payment is being made by an advertising agency to the railways for putting up hoardings or display panels on railway premises, such payment will amount to the payment for the use of railway assets, as the payment is for the use of space on the premises. However, where an advertiser is making payment to the railways for the display of advertisements on hoardings or displays on railway premises, such a payment is in the nature of payment for the services of advertisement, and not for the use of railway assets.
Any sum payable to Indian Railways for the use of railways assets shall be allowed on a payment basis. Any sum payable to Indian Railways for its services shall be allowed as per the method of accounting regularly employed by the assessee.