The income of Netflix India in the nation is apparently being examined by the country's income tax authority. A report claims that the government is considering taxing the revenue Netflix Inc. receives from domestic streaming services.
The action would be the first to tax foreign digital corporations offering services to Indian consumers, according to a report. Netflix is apparently subject to having its income in India assessed for tax because it has a permanent establishment (PE) there, according to the income tax authorities.In keeping with the same idea, the study also states that Netflix's Indian PE earned approximately Rs 55 crore in income during the evaluation year 2021–2022.
According to reports, the government also claimed that Netflix had infrastructure and parent company personnel on secondment in India to support its streaming services, creating a PE and tax responsibility for the nation.The decision was made in light of Netflix's 2016 launch of its streaming services in India, which was a huge success. Currently, Netflix has more than 6 million customers in India, according to the study.
Regarding subscribers, Netflix once came under fire for dropping numbers in a lot of different regions. After this, the firm added that it would take actions, such as forbidding password sharing and others, to keep its subscriber base and revenue from declining.
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