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Centre plans to tax Netflix India's streaming income : Report
The tax authorities stated that Netflix was on secondment in India to promote its streaming services, resulting in a PE and tax duty here.
As reported by The Economic Times, the Indian government is considering taxing the revenue Netflix Inc. receives from its domestic streaming services. The provision of electronic commerce services by foreign digital enterprises is now subject to tax in India for the first time.
An entertainment firm with US headquarters is regarded as having a permanent establishment (PE) in India, necessitating the taxation of its profits there.
According to the draught ruling, Netflix's Indian permanent establishment (PE) made money from streaming its services there and is subject to tax assessment. Authorities claim that Netflix Inc. had some personnel on secondment in India to support its services, which led to a tax obligation, according to the article.
Tax authorities have previously declared that seconded workers, even those who are temporarily borrowed, count as a permanent establishment.