If a person happens to be doing some outsourcing work on an individual basis,and is paid in US dollars, why is he asked to submit a US INCOME tax form, when he is not a citizen of the USA?
This is the case with me. I did some web designing work worth USD250, and now the company is asking me to submit an American taxation form no.. so that they can release my payment.
Is this the newest way to get your work done and freeze payments by telling non-US citizens sorry, as you are not a US taxpayer, you shall not be paid in dollars, because you cannot submit the required form.
By the way, I am an Indian taxpayer and have never been to the USA.
Please help.

If you are a foreign person and did the work while living in the foreign country, then this income is not subject to U.S. taxes.
Employer may ask you to submit form W8-BEN to confirm your foreign status.