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 will attribute an income of around Rs 550 million ($6.73 million) to Netflix’s Indian permanent establishment (PE) in assessment year 2021-22, the report said. ,Read also: Meet Linda Yacarino, the woman rumored to be Twitter’s new CEO — in pictures,
Tax authorities argued that the US firm had some employees and infrastructure from the parent entity in India to support its streaming services, leading to PE and tax liability, the publication reported. ,Also read: Elderly woman separated from family, Google Translate helped to meet again – do this,
The move is the first time India will tax foreign digital companies providing electronic commerce services to consumers, the people told ET.
Netflix did not respond to a Reuters request for comment.