I-T department looking to tax Netflix’s India operations

India is seeking to tax Netflix Inc’s income earned from streaming services in the country, the Economic Times reported on Friday, citing people familiar with the matter.

In a draft order, the tax authorities attributed an income of about 550 million rupees ($6.73 million) to Netflix’s Indian permanent establishment (PE) in the assessment year 2021-22, the report added.

Tax officials reasoned that the US firm had some employees and infrastructure from the parent entity on secondment in India to support its streaming services, leading to a PE and tax liability, the publication reported.