Help Needed In Filling W-8BEN-E Tax Form

Tekianaio537

Hi, We are a firm from India. I see W-8BEN-E is suitable form for us. I would like to know anyone from India has experience filling in the form.

We are not sure what to select in Treaty Claim statement.. for the section "Please select the applicable Limitation on Benefits provision under which you are eligible for benefits (see instructions). Note that the dropdown below is an exhaustive list; your country's tax treaty may not include all provisions. "

ElianaC

Hi @Tekianaio537
For instructors who are looking to make a treaty claim on their W-8BEN or W-8BEN-E forms, certain information is required:

• You must be a resident in a country that has negotiated a tax treaty with the United States (you can see the recent list here).
• You must enter a valid Tax Identification Number (either a foreign TIN or a US-issued TIN) on your form.
• You must indicate that you are claiming the treaty rate on the “Treaty claim statement” page of the form submission process.
• If you are filing as a business entity, you must also specify which “limitation on benefits” provision you qualify under, based on the ones named in your country’s tax treaty. These provisions detail which types of businesses are eligible for the lower rate. You can find more information about LOB provisions here.

Unfortunately, we are unable to answer your question as that would be considered tax advice. I highly recommend reaching out to a local tax expert for help. You can also click the informational buttons on the platform to get a further explanation about a certain phrase or section.

Eliana Cerna

Udemy Community Moderator

Rahul Iyer

Hi @Tekianaio537
,

I am based in India and I can share what I had selected to update my tax form. It looks like you are applying as an organization. I had also applied as an organization and selected "Company with an item of income that meets active trade or business test." It worked fine.

Disclaimer: Before selecting this option, I had sought its validity from my local CA. I would suggest you do the same. After completing these formalities, the US withholding tax reduces from 30% to 15% for Indians. Also, the withholding tax is only applicable for sales made in the U.S.

Further, India has a Double Taxation Avoidance Agreement (DTAA) with the U.S. In this, if you are taxed in the U.S., you need not pay that much amount in India as taxes. You can get tax relief. To gain these benefits, you will be required to submit all of your Udemy income statement to your CA and he will take those reliefs for you when filing the IT returns or paying quarterly taxes.

Hope this helps.

Tekianaio537

Hi Rahul, Thanks for your reply. If you can share further steps as well , it would be very helpful.

ShodiyorAbd1539

Hello everyone. I need some help with tax form.

CA_Abhishek

hi, @ShodiyorAbd1539 @Rahul Iyer @Tekianaio537

I am a certified chartered accountant and am already handling GST + Income tax for Indian instructors on Udemy income. I want to reply to your post regarding GST & Income tax implications on income from Udemy income.

For Income Tax [withholding tax by Udemy from your income]: -

Udemy deducts Tax in the US from your royalty income and deposits to the US government. However, you can claim that withholding tax back while filing your Indian tax return as per the India - US tax treaty and accordingly reduce your Indian income tax to that extent.

GST is Applicable for interstate and Export services without any limit. For intrastate [within the same state] sales GST is not applicable until your turnover crosses the threshold.

As you are providing service to Udemy US, you also have to 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. However, you can claim an exemption from the export of service case by filing for LUT. But for that, you will need to get yourself registered under the GST.

Important Note: You may lose the FTC [Foreign Tax Credit] permanently for a particular year if you do not apply for a rebate before filing your ITR/Revised ITR and a similar is also applicable for GST if you did not apply for GST exemption at the earliest.

Suppose you or anybody 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. In that case, you can have a one-to-one free on-call consultancy with me and I would be happy to solve each of your doubts. You can connect with me through my website (removed) or email (removed)

Thanks

CA Abhishek Jain

Founder: (removed)