Preparations are underway to tax Netflix’s earnings in India. The Income Tax (IT) Department has drafted an order for this. According to the report of ET Telecom, the Income Tax Department may issue this order for the company’s earnings of Rs 550 million in India in the financial year 2021-2022. The Indian unit of Netflix has earned this through Permanent Establishment (PE) in the financial year 2021-22.
This is happening for the first time in India when a foreign digital company is providing e-commerce service in India. However, Netflix has not issued any statement in this matter. Last month, Netflix beat Wall Street earnings estimates for the first quarter of the year. The company has offered a softer forecast given the development challenges the streaming service will face.
password crackdown feature
Netflix may launch the unsanctioned password feature in the coming months. After its launch, the company is expected to earn more revenue than in the first quarter. Apart from this, the company is also looking for new ways to earn revenue, including password crackdown and new ad supportive service.
According to a Reuters report, Netflix has earned about $ 2.88 per share i.e. Rs 20 in the first quarter. The total revenue of the company has been $ 8.162 billion i.e. approximately Rs 67,000 crore. The company’s co-chief executive Ted Sarandos says that the company is growing and profitable. Netflix has a clear vision to drive growth. It is being implemented for revenue and profit.
Will roll out in June
Only last month, Netflix announced the timeline of the password crackdown feature. It can be brought to American users by the end of June. At present, many users are using the same account through password sharing, due to which the number of subscribers of the company is not growing as expected. To overcome this, the company is preparing to launch the paid password sharing feature globally. Last year, the company had planned to roll it out by March 2023, but it could not be implemented.
According to a report in the past, this password crackdown feature of Netflix can make a 180-degree change in the company’s business model. Apart from this, the company is facing tough competition from streaming platforms like Disney +, Amazon Prime, Peacock, Paramount. In India too, the company has recently launched a mobile only plan to increase the subscriber base. This plan is cheaper than the regular plan of the company.
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