- News>
- Technology
IT Department Looking To Tax Netflix`s India Operations
The move is the first time India will tax overseas digital companies providing electronic commerce services to consumers, the people told to ET.
New Delhi: 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.
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: Meet Linda Yaccarino, The Woman Rumoured To Be New Twitter CEO --In Pics)
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: Elderly Woman Separated By Family, Google Translate Helped Her Reunite - Here's How)
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.