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I-T department looking to tax Netflix’s India operations: Report
Popular streaming platform Netflix could face taxation in India as the country’s income tax department is exploring the possibility of such a move. The government is seeking to tax Netflix’s income earned from streaming services in the country, reported The Economic Times after speaking to people familiar with the matter. If the tax department goes through with the move, it would be the first-ever move by the government to tax overseas digital companies for providing electronic commerce services to India, the sources told the publication. But why is the income tax department planning the move and does it even have the right to impose a tax on Netflix for its operations in India? Yes, it seems. This is because income tax authorities have indicated that the US-headquartered entertainment company, which is one of the most popular content streaming platforms across the globe, has a permanent establishment (PE) in India, and therefore, is liable to get its income generated from the country assessed for tax. Source -India Today
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