Winning Bizness Desk

Mumbai. The Government of India has started imposing tax on digital companies outside as it has decided to impose tax on the income from Netflix's streaming service. Income tax officials have told 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 tax on Netflix, then this will be the first time that a foreign digital company providing electronic commerce service in India will be taxed. Netflix has declined to comment on the matter.

Govt wants to regulate the digital economy

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 started service in India in 2016

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. There is a separate plan for viewing on mobile and tablet and separate plan for viewing on mobile, tablet, laptop TV which starts from Rs.149 to Rs.649.