Netflix is here but where is our 'Netflix' tax framework?

There are many methods across the world for taxing cross-border digital delivery of services.

In India we are still not ready with the model legislation and the e-commerce companies are facing many issues in different State with regards to taxation.

It is high time to frame laws in this regards as the internet based delivery of services and goods is going to increase manifold in coming days.

Best way for services is to follow the Japanese model where the service provide should have representative office in India and get registered and pay taxes as per place of supply rules or consumption base tax.

With GST is in the making, we should think of digital services and e-commerce taxation mechanism to avoid loss of revenue as well as ease of doing business.

Generally we are late and start thinking after the damage has been done.
This happened in case of transfer pricing and undervaluation, transfer of profit out of India by way of many transactions.

Arbind Aggarwal

Schneider1 Schneider1 18/01/2016