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Netflix could be preparing to challenge Rs 196-crore tax demand amidst dispute panel's ruling
The move follows the Dispute Resolution Panel's (DRP) recent ruling in favor of the department, upholding the tax demand raised by its international taxation wing.
The projected revenue growth for Q2 2024 is expected to be 16 percent. (Image by ibault Penin via Unsplash)
Netflix is said to be gearing up to appeal the Rs 196-crore tax demand imposed by the Income Tax department for alleged tax evasion. The move follows the Dispute Resolution Panel's (DRP) recent ruling in favor of the department, upholding the tax demand raised by its international taxation wing.
The Income Tax department argued that Netflix Entertainment Services (India) LLP functioned as a dependent agent permanent establishment (DAPE) of Netflix.
The total revenue from the company's operations from April 2020 to December 2020 exceeded Rs 1,145 crore, with a profit that amounted to Rs 1,008 crore approximately. Profits clocked from Indian from operations stood at Rs 503 crore.
According to reports, Netflix proposed Rs 13.36 crore. The remaining profit, associated with operations conducted in India through a Permanent Establishment (PE) arrangement, is subject to taxation for Netflix. This amount was computed at Rs 490 crore.
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