ITAT Ruling On Netflix India : Rejects Re-characterization Of Limited Risk Distributor

BACKGROUND

• The Mumbai bench of Income Tax Appellate Tribunal (ITAT), on 17th October 2025, issued a ruling in favour of Netflix Entertainment Services India LLP¹ ('Netflix India' or 'Taxpayer'), rejecting the Revenue's recharacterization of Netflix India from a limited-risk distributor to an entrepreneurial content and technologyserviceproviderin India.
• Netflix India operates as a non-exclusive distributor, providing access to the global Netflix streaming platform within India. Its responsibilities include marketing, subscriber billing and collections, customer support, and regulatory compliance. It does not create or own any intellectual property, content, or technology related to the Netflix platform. All core content, platform technology, and intellectual property rights remain with foreign affiliates, primarily Netflix Inc. ('Netflix US') and Netflix International B.V.