A author in India, of engineering book published by US publisher, 30% tax on royalty deducted.Is it OK?

thirty percent statutory rate of withholding tax on royalties paid nonresidents of united states. technically, tax should collected respect sales in united states, though publisher may lump sales together. if case, may entitled refund of excess withholding.

more importantly, however, us-india income tax treaty provides reduction in royalty withholding tax rate 15% recipient resident of india. in order obtain benefit of rate, must provide publisher completed form w-8ben on certify entitled treaty benefits. once publisher has received form, should begin withholding @ 15% rate.

entitled refund of excess amount withheld, have file tax return (form 1040-nr) after end of year in tax withheld claim refund. cannot claim refund or credit excess withholding tax publisher.

additional information available @ link below.

federal govt tax deducted @30% of royalty publisher(in usa) indian author & citizen. correct

Business & Finance Taxes United States Next