Team Blitz India
NEW DELHI: India is seeking to tax Netflix Inc.’s income earned from streaming services in the country, people familiar with the matter said.
It’s the first such move to tax overseas digital companies providing electronic commerce services to consumers in India, they said according to media reports on May 12.
The income tax authorities have held that the US-headquartered entertainment company has a permanent establishment (PE) in India and is thus liable to get its income in the country assessed for tax.
In a draft order, the tax authorities attributed about Rs 55 crore income to Netflix’s Indian PE in the assessment year 2021-22, they said.
The tax officials have reasoned Netflix had some infrastructure and employees from the parent entity on secondment in India to support its streaming services, leading to a PE and tax liability in the country.
