IT Department may Tax Netflix's India operations

Netflix's India operations may get taxed, afterall.

Published By: Pranav Sawant
Published: May 12, 2023, 05:31 PM (IST)

Highlights

  • Netflix may have some tax liabilities.
  • Centre may tax Netflix's India operations soon.
  • Income tax authorities attributed an income of about 550 million rupees to Netflix's Indian permanent establishment in year 2021-22.

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 offering FREE 30-day trial again? Here's how to know if you're eligible

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: Netflix users will now need a unique email ID for every profile

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: Netflix reveals Unhinged, a TV horror game controlled by your phone

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

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