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Amazon and Tax Withholding For India

Since so many people ask me about this, I emailed an Amazon (India) official about it. Her response:

The U.S. Internal Revenue Service (IRS) requires Amazon to collect 30% from royalty payments issued to non-U.S. entities. We automatically deduct the tax withholding from your royalty payments.

https://kdp.amazon.com/help?topicId=201274690

Essentially,  IN residents can claim a reduced withholding rate (15%) through India’s tax treaty with the US for sales on the marketplaces listed on that page (US, JP, CA, IN, MX, AU) if they file the W8-BEN with a US TIN on it. That is stated in the first section on that page.

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  1. July 23, 2014 at 10:18 am

    Seems we are going to get very little Rasana 😦

  2. July 23, 2014 at 10:52 am

    To claim that 15% (on profit), we need to register as a sole trader, file service tax returns twice a year, and get a US TIN. Too much of a hassle. If there is lot of sales, one can consider doing all this, I guess.

    Destination Infinity

    • rasanaatreya
      July 23, 2014 at 11:12 am

      One can always hope!

  3. November 14, 2014 at 8:07 pm

    Oh wow! That seems like a lot of trouble for someone just heading out for the yonder! And with a poetry book too 😉 Just what does amazon do in case the sales are even below the 30% margin?

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