Netflix came on the radar of Income Tax Department, there is a case of tax evasion of crores - Newztezz Online


Friday, May 12, 2023

Netflix came on the radar of Income Tax Department, there is a case of tax evasion of crores

Netflix, under the I-T scanner, is facing tax liability in India for income from streaming services. Because the Income Tax Department has created many difficulties for Netflix.

The Intax Department has taken Netflix on its radar in the case of tax evasion of crores of rupees. Due to which Netflix has faced many difficulties. Income Tax Department officials have given an income credit of about Rs 55.25 crore ($6.73 million) for the permanent establishment of Netflix in India in the assessment year 2021-22. The Income Tax Department is taking strict steps to tax Netflix's income in India. Because Netflix has been accused of tax evasion of crores of rupees.

Actually, this is the first time that India will impose tax on foreign digital companies providing electronic commerce service to the customers. The logic behind this move by the Income Tax authorities is that Netflix has recruited some of its staff and infrastructure from the parent unit in India to provide support for its streaming services. It has established an establishment in India, which in turn creates a liability to tax.

IT department giving notice to companies

ITR filling forms have arrived for the new financial year. The process of filing income tax return has started. At the same time, the Income Tax Department is giving notices to the companies after scrutinizing the returns of the last few years. Somewhere you have also got the Income Tax Department, so pay attention that pay your tax on time, otherwise the Income Tax Department can create many problems for you. Before this you should know why you are getting tax notices.

Netflix denied this

Explain that this step of the Income Tax Department is part of India's efforts to regulate the digital economy and ensure that foreign companies pay tax on the revenue earned in the country. The Indian government has been discussing the introduction of a digital tax for some time, and this action against Netflix could be seen as a test case for future taxation of other foreign digital companies.

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