Ignore taxes for now, we’ll come back to them…
You set the item price to whatever you want, and you get 62.5% of that item price. That’s it, there’s nothing more to it.
That’s based on you selling less than $3750 though, you get more than 62.5% if you’ve sold more.
Now for taxes, the IRS feel that anybody earning money from US sources should be paying tax on that income to the US government. So any company that operates in the US needs to make sure they withhold and remit the relevant amount, which as standard is 30%.
However, the US has tax agreements with a bunch of countries, and those countries have reduced rates. India is 15% as you know. So 15% of the item price will be withheld and transferred to the IRS. But… you’ll be issued an official document at the end of each US tax year to show how much you have had withheld by the IRS, and as your country has a tax agreement with the US, then when you pay taxes in your own country, you should be able to use that document to offset whatever you owe the Indian government. EXactly how that works, I’m not sure, but watch out for a whole bunch of posts on it from January.
So yeah, hopefully that clarifies things a bit!
And last but not least, I’m pretty sure there’s not a theme author in the land who hasn;t needed to provide support at some point, no matter how simple their item. Even if it’s just ‘user error’ kind of requests. And if you did turn off support, you’d still earn exactly the same… as the fees on support isn’t an additional fee that you’re charged because you provide support… it’s just that the fee (which is the same) is split between the item and the support.
So yes, if you turned off support you’d still earn the same money, and not have to provide support, which sounds great… but a lot of buyers want peace of mind when making a purchasing decision. If they’re torn between two items at the same price, and one has support while the other doesn’t… it;s an easy choice for them.