India is seeking to tax Netflix Inc’s income earned from streaming services in the country, the Economic Times reported on Friday, citing people familiar with the matter. Also Read - Netflix begins password sharing crackdown in the US, UK, and other regions
In a draft order, the tax authorities attributed an income of about 550 million rupees ($6.73 million) to Netflix’s Indian permanent establishment (PE) in the assessment year 2021-22, the report added. Also Read - Airtel vs Jio vs Vi vs BSNL: Best postpaid plans under Rs 1000 with OTT benefits
Tax officials reasoned that the U.S. firm had some employees and infrastructure from the parent entity on secondment in India to support its streaming services, leading to a PE and tax liability, the publication reported. Also Read - Airtel vs Jio vs Vi vs BSNL: Top postpaid plans under Rs 500 with best OTT benefits
The move is the first time India will tax overseas digital companies providing electronic commerce services to consumers, the people told to ET.
Netflix did not respond to a Reuters’ request for comment.
($1 = 81.7800 Indian rupees)
—Reuters
