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us india tax treaty for google adsense, youtube, google play
Certificate of Foreign Status of Beneficial Owner for United
States Tax Withholding and Reporting (Individuals)
▶ For use by individuals. Entities must use Form W-8BEN-E.
▶ Go to www.irs.gov/FormW8BEN for instructions and the latest information.
▶ Give this form to the withholding agent or payer. Do not send to the IRS.
1. The profits of an enterprise of a Contracting State shall be taxable only in that State unless the
enterprise carries on business in the other Contracting State through a permanent establishment situated
therein. If the enterprise carries on business as aforesaid, the profits of the enterprise may be taxed in
the other State but only so much of them as is attributable to
(a) that permanent establishment;
(b) sales in the other State of goods or merchandise of the same or similar kind as those
sold through that permanent establishment; or
(c) other business activities carried on in the other State of the same or similar kind as
those effected through that permanent establishment.
Motion Picture and TV (YouTube, Google Play)
Other copyright (YouTube, Google Play)
Article 12 and paragraph 2A 11
15%, 30%
Adsense:
Article 7 and paragraph 1 withholding rate 0%, 30%
US Law Without indian treaty 30%
Google will deduct 30% of the revenue you earned from the United States of America.
US and India have a DTAA treaty. 15% royalties
DTAA: Double Tax Avoidance Agreement is a treaty that is signed by two countries.
Income earned from US, taxed in India. if US taxes then that would exempted in india.
withholding rate is only 15% for Indian citizen with no permanent establishment in the US. for copyright royalties.
us india tax treaty Article 7 and paragraph 1 services / Business Profits
Business Profits
paragraph 1: The profits of an enterprise of a Contracting State shall be taxable only in that State unless the
enterprise carries on business in the other Contracting State through a permanent establishment situated
therein. If the enterprise carries on business as aforesaid, the profits of the enterprise may be taxed in
the other State but only so much of them as is attributable to
(a) that permanent establishment;
(b) sales in the other State of goods or merchandise of the same or similar kind as those
sold through that permanent establishment; or
(c) other business activities carried on in the other State of the same or similar kind as
those effected through that permanent establishment.
us business & permanent establishment india (read & watch more videos on us india tax treaty) full pdf here us india tax treaty pdf
30% default, 0% reduced withholding rate
Point: No Permanent Establishment US.
https://www.irs.gov/pub/irs-trty/india.pdf
us india tax treaty for google adsense, youtube, google play
24% default as a US citizen unless you provided us india tax treaty info.
(ii) during the subsequent years, 15 percent of the gross amount of royalties or
fees for included services;
us india tax treaty ARTICLE 12
Royalties and Fees for Included Services
1. Royalties and fees for included services arising in a Contracting State and paid to a resident of the
other Contracting State may be taxed in that other State.
2. However, such royalties and fees for included services may also be taxed in the Contracting State
in which they arise and according to the laws of that State; but if the beneficial owner of the royalties or
fees for included services is a resident of the other Contracting State, the tax so charged shall not
exceed:
Under penalties of perjury, I declare that I have examined the information on this form and to the best of my knowledge and belief it is true, correct, and complete. I further certify under penalties of perjury that:
I am the individual that is the beneficial owner (or am authorized to sign for the individual that is the beneficial owner) of all the income to which this form relates or am using this form to document myself for chapter 4 purposes,
The person named in the Tax identity section of this form is not a US person,
The income to which this form relates is: (a) not effectively connected with the conduct of a trade or business in the United States, (b) effectively connected but is not subject to tax under an applicable income tax treaty, or (c) the partner’s share of a partnership’s effectively connected income,
The person named in the Tax identity section of this form is a resident of the treaty country listed in the Tax treaty section of the form (if any) within the meaning of the income tax treaty between the US and that country, and
For broker transactions or barter exchanges, the beneficial owner is an exempt foreign person.
US Foreign Tax ID Number in india
What is tax identification number in india?
PAN
PAN in India is the TIN*
PAN India treats as the Tax identification number for tax payers, GSTIN / vat is gst within india, tan for tax collectors. commercial tax identification number by tin.
PAN is used as an identifier for financial transactions while TAN is used as an identifier for the collection of taxes. TIN was used to track VAT-related activities, and GSTIN is now used for tracking GST-related activities.
Google Adsense Tax US & India TAx Information Sample
Certification: Yes
Tax treaty country: India
Income type: Services
Article and paragraph: Article 7 and paragraph 1
Withholding rate: 0% (reduced rate)
Income type: Motion picture and TV
Article and paragraph: Article 12 and paragraph 2A II
Withholding rate: 15% (reduced rate)
Income type: Other copyright
Article and paragraph: Article 12 and paragraph 2A II
Withholding rate: 15% (reduced rate)
How to check Tax Impact on youtube ?
go youtube analytics,
select earnings, and select US America,
Check the the earnings , 15% Of Those will be taxed.
if you earned 100$ from from US, 85$ will be yours,
If tax not submitted 76$ dollar will be yours 24% for US Citizen, google treats as you US cizti\zen unless you submit the Details.
US Government Charges 30% as a default rate otheroutiseders in United states of America.
We’re reaching out because Google will be required to deduct U.S. taxes from payments to creators outside of the U.S. later this year (as early as June 2021). Over the next few weeks, we’ll be asking you to submit your tax info in AdSense to determine the correct amount of taxes to deduct, if any apply. If your tax info isn’t provided by May 31, 2021, Google may be required to deduct up to 24% of your total earnings worldwide.
Disclaimer” article is only purpose of awareness, not for adise,
(this article is under phase 1, as a draft)
Note: this article updates frequently this latest info
