PDA

View Full Version : Avoiding double tax in India and USA


12apple34
Jul 31, 2007, 02:37 PM
I am based in India and I am planning to write a book and the publishers are based in USA .
Can someone tell me how I can avoid double taxation on the royalty of the book, as I think there is a double taxation treaty between USA and India.

The publishers have asked me to fill form W-8BEN, but I am not sure how I would be able to save double taxation on the same. Can I avoid tax being cut in US

Thanks in advance

AtlantaTaxExpert
Aug 1, 2007, 12:17 PM
Publishing royalties are normally taxed at 30% for non-resident aliens.

Though I am not an expert in Indian Tax Law, I suspect that you will be able to claim a credit against your India income tax for payment of this 30%. This effectively avoids the double taxation that you are afraid of.