The Indian government is seeking to tax Netflix’s income earned from its streaming services in the country.
According to reports, income-tax authorities have held that the US-headquartered entertainment company has a permanent establishment in India and is liable to get its income in the country assessed for tax. In a draft order, taxmen attributed Rs 55 crore income to Netflix’s Indian establishment in the assessment year 2021-22.
This is the first such move to tax overseas digital companies providing electronic commerce services to consumers in India. Foreign entities are sure to resist development.
