INDIAN Authors - USA(iTin) Tax Discussion Only

Hey it’s Niraj,

I see a lot of discussion is going on about the new Tin? So i thought to make an exclusive Indian Authors only discussion to solve and get the solution much faster?

Here is a Blog post on - “How To Apply for ITIN in INDIA”. its a hard process if you don’t know the steps.

And it will be helpful for the Envato staff to reply, as they have to focus only on India’s tax and treaty with USA

Here is some details that i gathered…{Post modified with details from @surjithctly }

**Hey should we all do a webinar/conference to sort out this - VOTE = Yes/No for a combined webinar? **

But the form requests ITIN => Individual Tax Identification Number. This is not something we’ll get from India. Its provided by US (IRS) to foreign aliens who does not qualify for an SSN (Social Security number)

To Apply for ITIN from IRS, We need to fill W-7 form. (See Instructions2)

Also, I found that applying for an ITIN is not a simple process, It needs some identity proof like attested by US notary (from their Embassy in India). So, I’d rather wait for what my accountant says about.

2 Likes

We Indian author need this TIN Number in order to place “Foreign Tax ID” in envato tax form ?

Same like you i’m also not sure what to provide. It will be great if someone can provide correct details of everything.
What you doing @surjithctly in this matter ?

Hey now we know that 15% of our income will be withhold, then this is the new earning rate schedule of Exclusive Authors will be

Normal Authors = 50% - 15% = 35%

Elite Authors = 70% - 15% = 55%

Now $Elite == $NewbieAuthors + $5%Extra.

echo $WTF;

haha haha

Here is the income tax treaty between USA and INDIA

https://www.irs.gov/Businesses/International-Businesses/India---Tax-Treaty-Documents

Hi I am working individual and i don’t have IT Returns - TIN no.
And i am not getting enough money 2.5 laks - to register for tax - or something.

How i can complete the W8-BEN Form ? We need TIN No For this ?

yes definetly you need tin number… since without tin number you cant make 2.5 lakhs, so you dont need to pay taxes to Indian govt but you will definetly pay 30% tax to usa if you dont have tin.

Hmmmm

I am from India too, however I just expect/wait Envato to adjust their requirements and accept W-8 without foreign Tax ID without cutting treaty benefits. Few other microstock sites already doing this favour, so probably Envato may able to do this.

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i dont think so, as india and USA are into treaty… You will need to pay 15% if you have itin

Guys, we will post what our accountant has to say in this matter. Selling here is becoming too costly now.

As per the tax treaty between India and USA, we (Indians) need to pay 15% tax when our item is purchased by buyer from USA.

So, if we provide foreign Tax ID in W8 form, can we claim that 15% tax at the end of financial year?
If yes, from whom (Indian Govt or IRS)?

I too have some questions in this regard.

After doing the above procedure I get a TIN number that I need to enter into my envato account so that only 15% is cut from my earnings. And as @templatin asked can that 15% paid tax be deduced from the IT returns that we file to our govt.
Can anyone just elaborate the whole process to be done to get the 15% cut rate for our US based sales.

i’m consulting with a tax expert…i will let it know,…appreciate others opinion too

Hello All,

what @UniPixen says in the first post is wrong. AFAIK. Because he explained TIN in india.

But the form requests ITIN => Individual Tax Identification Number. This is not something we’ll get from India. Its provided by US (IRS) to foreign aliens who does not qualify for an SSN (Social Security number)

To Apply for ITIN from IRS, We need to fill W-7 form. (See Instructions)

Also, I found that applying for an ITIN is not a simple process, It needs some identity proof like attested by US notary (from their Embassy in India). So, I’d rather wait for what my accountant says about.

Guys, @axnorpix @abhimanyusharma003 @Muse_Master @KenulJain Don’t apply for TIN as in India. they require ITIN instead. Don’t confuse with TIN (as in India) and ITIN (as in US)

(Also See EIN, The Alternative)

3 Likes

I am a little author , It will be great if someone can provide correct details of everything.
Plz

Yep @surjithctly we will have to wait and hear from a senior level author, please not make a hasty decision guys.

IRS Certifying Accepting Agent in India and in US to help you with your W-7 form to get ITIN number. http://1.usa.gov/1MjplQi

CERTIFIED ITIN PROVIDERS IN INDIA
http://www.praveenjain.com/Pages/default.aspx
http://www.snptax.com/

Thanks @surjithctly for making this more clear… i talked to a accountant & he is still confused about tin & itin, so going to consult with a CA tomorrow .

I am quoting NATMAN

I don’t have a US TIN or a foreign tax identity number, what should I do?

When you complete the W-8 Form, if you are in a country with a tax treaty rate for US RWHT, then you need to add a tax identification number to claim a treaty benefit. Here’s how:

  1. If you have a tax number from your own country (i.e. a “foreign tax identification number”), then add that into the W-8 form where specified. If you’re not sure what is the right number in your country, talk to a tax advisor or accountant. You may need to apply to your country’s government or tax authority.
  2. Alternately, you can apply and get a US number called an ITIN (Individual Taxpayer Identification Number). There is a simple application process with the IRS that involves a form called the W-7. You find the instructions and form here.114 Assuming you’re not a US person, then you will most likely be completing the form as a “Nonresident alien required to get ITIN to claim tax treaty benefit”. Don’t stress, in the US everyone from elsewhere is an alien :smile:

Here the First point one “Foreign Tax identification Number” refers to our country’s TIN which we can apply in India.
The Second point refers to ITIN which has to be applied to IRS of USA. This can be done with the links provided by Kaaz.

So basically TIN from India or ITIN from US either one is good

Please see this link.

Just quoting from that help page.

What will we do with this information?

The W-8 form will determine the appropriate withholding tax rate that will be applied to your sales to US buyers. At the end of each financial year we’ll send to you and the IRS the appropriate IRS Form 1042 so that you can accurately report your income to your local tax authorities and claim any credits for the taxes withheld and remitted to the IRS.

So you should be able to claim a refund or show the withheld tax as deductions etc in India. But consulting an auditor is best.