Centre Plans To Tax Netflix On Income Earned In India
The move is the first time India will tax overseas digital companies providing electronic commerce services to consumers, 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
Logically any Income From India earned by electronic commerce services to consumers even without PE should be taxed in India! Agreed?
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, as per media reports
The country presents a lucrative market for streaming services, with Netflix India reporting a 30% growth in total viewing hours year-on-year in FY21-22. The company’s revenue also rose 25%, the report says
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