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krishnadixit
Mar 18, 2013, 10:44 PM
Hi Tax Gurus,

I am a software consultant, working remotely (providing my services as an external contractor) for a US manufacturing company.

Making it more clear:
I am working remotely from India & providing my services in US sitting here from my home (India).

I have filled & submitted W-8BEN form to the US company, which says flat 30% income tax will be levied in US.

As I am receiving already tax-cut payment from US company, will I get the benefit of India-USA Tax treaty & exempt from Indian Income Tax.

AtlantaTaxExpert
Mar 19, 2013, 06:54 AM
The U.S. company should NOT have withheld ANY taxes for work done in India, because you are NOT LIABLE for U.S. income taxes.

You will need to submit Forms 1040nr and 8833 to get that 30% back.

You need to submit a new Form W-8BEN citing the correct treaty article to prevent future withholding.

If you need professional help, email me at the email address in my profile.