Dikhyaa Mohanty 
According to persons familiar with the situation, according to a story in the Economic Times on Friday, India is attempting to tax Netflix Inc.’s profits from its domestic streaming services.
According to a draft ruling, the tax authorities estimated that Netflix’s Indian permanent establishment (PE) earned around Rs 550 million ($6.73 million) in the assessment year 2021–2022.
According to the magazine, tax authorities reasoned that the American company had the infrastructure and certain workers from the parent organization on secondment in India to support its streaming services, resulting in a PE and tax liability.
The move is the first time India will tax overseas digital companies providing electronic commerce services to consumers, the people told to ET. Netflix did not respond to a Reuters’ request for comment, the report added.
