INDIAN Authors - Tax Withheld Discussion

Every time i make a sale in the US 15% of Tax is withheld on that sale, what i would like to know is that if we can get that withheld tax back to us. As my store is new and its not been an year i believe by 15th March 2018 envato will send me Form 1042 as a tax summary, so can i get my withheld tax returned back to my bank account somehow?

Please help out, i would like to know better on this matter.

Thanks :slight_smile:

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I am also looking for this solution. Many says PAN card is enough to get some go with ITIN but need to hear from some one who have already got that back. I haven’t heard any one who did get withheld tax back. I am author work mostly on ThemeForest and Codecanyon but rules are the same for all.

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Did someone got solution for to it?

You can not get the withheld tax amount back but yes you can claim it against your calculated tax in India when submitting your income tax return

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@imithemes
Can you elaborate on how to calculate that 15% withheld tax against IT Return in India, please!

@imithemes
And while entering the Tax Information in your Settings menu, did you selected Individual Taxpayer Identification Number (ITIN) or Foreign Tax ID Number under Tax ID Type?

I was notified by my CA few days back that they are not considering it for the next IT Return as of now. There are some confusions whether we can claim it in whole of some part of it as TDS. Still not cleared with this, if have any update will share it here.

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And while entering the Tax Information in your Settings menu, did you selected Individual Taxpayer Identification Number (ITIN) or Foreign Tax ID Number under Tax ID Type?

Foreign Tax ID should be your choice

And that is the PAN number right?

Yup if individual then yours and company’s PAN if registered Pvt. Ltd. or Ltd. Company

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Thanks for all the answer man. Thanks a lot.
So at this moment, 15% tax that is withehld, we cannot get it back anyhow, right?

Not for now, all lost money you see ;(

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Hello,

Fill up W8 with your tax number hope not happen any issue about this.
The withholding rate for India is 15%, but you’ve been withheld 30%, which means you’ve filled out the W8 but not included your foreign tax ID number. Do that and you’ll have 30 cents withheld rather than 60 cents on a similar sale.

Thanks

@imithemes can you please check this document credit_of_taxes_withheld_outside_india_available.pdf (280.6 KB)

Thanks for sharing it. Seems like helpful in getting back our money, will have a discussion about the same with my CA.

@imithemes According to me - we can not get this money back but we can use it as credits inside our final IT return.

For example:- A person is going to pay Rs 80K as income Tax in India but he has paid Rs 50k as USA withholding Tax then he only need to pay Rs 30K (80k - 50K) as Income Tax in India. We can save money under double taxation policy.

Hope your CA can provide better advice on it, I’ll wait for your answer.

Yes, I too believe so but will still seek experts view on this. Will update here what they comes up with

@imithemes we have also received last year(1 jan - 31 dec 2019) 1042-s withholding tax pdf from envato, hope you have already received.

I have asked with 5-6 CAs regarding this and all are confused hope you can find some expert advice on it.