A Study on Taxation Laws on Foreign and Indian Online Streaming Platforms in India

  • Sumanth Ravi and Saaishri. R
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  • Sumanth Ravi

    Student at School of Law, SASTRA University, India

  • Saaishri. R

    Student at School of Law, SASTRA University, India

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This manuscript provides a concise overview of the taxation laws governing foreign and Indian online streaming platforms in India. The Indian government has implemented a set of tax regulations aimed at both levelling the playing field and generating revenue from the booming digital entertainment industry. The tax regulations that are applied to international internet streaming services that operate in India are covered in the first portion of this examination. The Equalisation Levy, also known as the "Google Tax," was implemented as part of this, and it puts a 2% tax on the money that foreign digital service providers get from Indian customers. Additionally, there are different rates of the Goods and Services Tax (GST) (with rates ranging based on the cost) applicable to subscription costs paid to overseas streaming services. A permanent presence in India for tax purposes is an idea that is also looked at. The second part of the article focuses on the tax regulations that apply to Indian online streaming services. Domestic businesses in this sector are required to pay corporate income tax on their earnings, which normally ranges from 25% to 30% depending on turnover. They are also required to collect and return GST at rates based on the price of the subscription. In addition, certain Indian states have proposed or implemented Digital Services Taxes (DST) on the income produced by suppliers of digital services, expanding the tax landscape. The paper emphasizes how these tax policies may affect the competition in the internet streaming sector. It highlights the worries that these restrictions would create an unfair playing field, favoring domestic platforms, and it looks at the difficulties in enforcing tax compliance and collecting money from overseas streaming platforms. This comparative study also examines the global repercussions of India taxing foreign digital services, which have sparked concerns about tax and trade treaties. Last but not least, it talks about how these tax regulations can affect customers and possibly raise subscription prices.


Research Paper


International Journal of Law Management and Humanities, Volume 6, Issue 6, Page 2442 - 2450

DOI: https://doij.org/10.10000/IJLMH.116361

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