The Central Government is mulling to Tax the over the top (OTT) platform Netflix on income earned in India.
According to sources, the Bharatiya Janata Party (BJP) led Indian Government is seeking to tax Netflix income earned from streaming services in the country. As per sources, the 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 2021-2022. With this huge amount of income annually, the Income Tax authority and the Indian Government said, the United States of America (U.S.A.,) firm is operating with a number of staff in India.
With this establishment in India to support the streaming platforms, especially with the Indian content for audiences makes the OTT liable to pay taxes.
The move is the first time that the Indian Government would tax overseas digital companies providing electronic commerce services to consumers.
It is to be noted, an official announcement in this regard is awaited.
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