May 12 (Reuters) – India is looking for to tax Netflix Inc’s earnings earned from streaming providers within the nation, the Economic Times reported on Friday, citing individuals aware of the matter.

In a draft order, the tax authorities attributed an earnings of about 550 million rupees ($6.73 million) to Netflix’s Indian everlasting institution (PE) within the evaluation yr 2021-22, the report added.

Tax officers reasoned that the U.S. agency had some staff and infrastructure from the dad or mum entity on secondment in India to help its streaming providers, resulting in a PE and tax legal responsibility, the publication reported.

The transfer is the primary time India will tax abroad digital corporations offering digital commerce providers to customers, the individuals advised to ET.

Netflix didn’t reply to a Reuters’ request for remark. ($1 = 81.7800 Indian rupees) (Reporting by Urvi Dugar in Bengaluru; modifying by Uttaresh Venkateshwaran)