Government will levy tax on Netflix's earnings in India: This will start taxing digital companies outside
The government will levy a tax on Netflix's earnings in India: This will start taxing digital companies outside
The Indian government is considering imposing a tax on income from Netflix's streaming service. The Economic Times has quoted Income Tax officials as saying that in the assessment year 2021-22, the Indian Permanent Establishment (PE) of Netflix has earned an income of about $ 6.73 million (Rs 55.28 crore).
If the government imposes a tax on Netflix, then this will be the first time that a foreign digital company providing electronic commerce services in India will be taxed. Netflix has declined to comment on the matter.
According to the Economic Times, the Government of India has been discussing introducing a digital tax for some time now. This tax will start with Netflix, after which tax can also be imposed on the service charges of other foreign digital companies. Through this, the government wants to regulate the digital economy, in which it has to be ensured that foreign companies pay tax on the income generated from here.
Netflix launched its streaming service in India in the year 2016, which now has over 6 lakh paid subscribers. Then the company introduced a basic plan of Rs 500, a standard of Rs 650, and a premium plan of Rs 800. Right now Netflix's mobile, basic, standard, and premium plans are available.