Withholding tax

VijeshJain
VijeshJain Posts: 44 storyteller rank
in First-time course creation

Hi good morning to the community members. I am new to Udemy just having uploaded 3 courses. I filled all tax documentation and I was notified that everything is done and no formality is pending. I am fro India and have no citizenship at US or any connection. I submitted all my tax details.

Now my account says that the withholding tax is 15% for me. While my other contacts in India are all enjoying 0 withholding tax. I wrote to Udemy supprt about fee day back, contesting the 15% withholding tax. But there is no response from their side. Can someone tell me where I did the mistake and what step can I take to rectify this tax. I have not received any double tax benefit treaty document from UDEMY. Is there any way to fill that kind of form?

Thanks.

Vijesh Jain

New Delhi, India

Comments

  • MariaG
    MariaG Posts: 2,328 researcher rank

    Hi @VijeshJain
    , please write to instructorsupport@udemy.com so they can further clarify this for you. Thank you!

  • AartiUppalSingla
    AartiUppalSingla Posts: 1 observer rank

    Hi Vijesh,
    Did you find an answer to your query? If yes, then can you share the form details as I'm facing the same issue.
    Thanks in advance.

    Aarti

  • VijeshJain
    VijeshJain Posts: 44 storyteller rank

    Hi. I did get the answer for my question. As I understand the withholding tax of 15% is levied on my sales in US. No withholding tax on other sales. I guess that may be as per the rules and regulations in US. Perhaps double taxation treaty is not valid for sales in US.

    @AartiUppalSingla
    wrote:

    Hi Vijesh,
    Did you find an answer to your query? If yes, then can you share the form details as I'm facing the same issue.
    Thanks in advance.

    Aarti

  • Tech_Admin
    Tech_Admin Posts: 8 researcher rank

    Hello All,

    I have posted my query related to the same issue, kindly check.

    https://community.udemy.com/t5/Introductions/Withholding-Tax/m-p/71423#M5131

  • CA_Abhishek
    CA_Abhishek Posts: 38 traveler rank
    edited August 2

    @VijeshJain @Tech_Admin

    @AartiUppalSingla

    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. Claiming a rebate in INDIA of tax withheld in the US is very complicated, many individuals file their ITR with the wrong procedure, and due to this they do not receive the eligible FTC credit in India, or end up getting notices from the tax department on a later stage. Also, many CA's are not aware of the proper procedure for claiming US FTC. So it is important to file it with the one who has a prior good experience in this thing.

    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 (website removed) or email (e-mail removed)

    Thanks

    CA Abhishek Jain

    Founder: (removed)

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