Udemy pays tax to my indian government or should i pay tax separately ?

NagaSaiNikh517
NagaSaiNikh517 Posts: 1 observer rank
in First-time course creation

Hi friends, I have published few courses and earnt little bit. i submitted the tax forms udemy asked. Now udemy pays the tax to my indian government or should i pay separately ?

thank you

Comments

  • Bella
    Bella Posts: 3,694 traveler rank

    Hi @NagaSaiNikh517, thanks for reaching out!

    We have a section on our Help Center for documentation regarding Taxes that you can read in this link.

    For sales taxes, as we currently operate in India, Udemy is the merchant of record with students and sales tax is Udemy's responsibility to collect and report to government collections. Therefore this should not affect the way you report income. We highly recommend that you consult with a tax adviser to clarify any questions or responsibilities you may have.

    For any other questions about how Udemy handles tax, please do contact our Instructor Support team here. They'll be able to provide further information about this.

    Bella Almeida

    Udemy Community

  • Bella
    Bella Posts: 3,694 traveler rank

    Hi @NagaSaiNikh517

    I just wanted to add another piece of information I've obtained after researching this a bit further. In Udemy's case, we are required to withhold tax from copyright royalties when the student taking the course is in the US. This is separate from any tax you owe in your country.

    I hope this additional information helps!

  • CA_Abhishek
    CA_Abhishek Posts: 38 traveler rank

    @NagaSaiNikh517
    Hi, I am a Certified Chartered Accountant and would like to reply to your question.

    Udemy collects and pays tax to respective countries on their income which it collects from students. Then it distributes some portion of its revenue to instructors like you after deducting withholding tax and claims it as expenses.

    Now, income which you receive from udemy is called royalty and its your income / turnover. on this your tax implications would be completely different that those of udemy US. As you are resident in india, your worldwide income would be taxable. you have to pay tax on this income as well. however, tax withhold by udemy US can be claimed in india as rebate and you can reduce your total tax laibility up to that extent.

    Other tax is GST,

    As you are providing service to Udemy US by uploading your course there, you also must apply for GST and do all the GST compliance throughout the year. However, you can apply for exemption from payment of GST as you are exporting the service out of India and for applying the said exemption, first you need to register yourself for GST.

    Hope, This will helps you to clear your understanding regarding tax in india.

    If you or anybody else needs assistance or would like to know more about this topic on income tax return filing + Annual GST compliance for the income from Udemy US, you can have a one-to-one free on-call consultancy with me and i I would be happy to solve each of your doubts. You can connect with me through my website www.tax2save.in or email caabhisheksjain@gmail.com

    Thanks & Regard
    CA Abhishek Jain

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