Legal Question in Tax Law in India

I am a writer and had selected a reputed international publisher to publish my work on "self publishing" basis. As per terms 50% of sale price of books was to be retained by the publishing house and 50% was to come to me as Royalty.Accordingly I purchased a publishing package from the publisher and made the payment to the publisher in Great Britain Pounds through banking channels since address of publisher's bank was in London. An agreement came to me through computer which was also signed and returned by me. Now I have received a communication from the publishing house that they would deduct 30% from my royalties as tax and deposit the same with US Government since Publishing company is registered in USA. I am already a Income tax payer with a permanent Income Tax account number in India and would be paying up to 30% tax in India on the royalties received from sale of my books therefore in essence it means that I am being double taxed for the same earnings once in USA and again in India. The publishing house has a office in New Delhi, India as well but say that their payment procedure is centralized. Is unilateral deduction of tax by the publisher at source and its deposit with USA tax authorities Legal? Is double taxing legal under international law? If they give me a tax deduction certificate will it be honoured by the Indian Income Tax authority? Please advise.


Asked on 3/04/14, 2:47 am

1 Answer from Attorneys
anuradha Dixit +9312411481 dixitlawfirm

did they specify this in the agreement you have signed with them??.The Us taxation law does talk about 30% deduction till paperwork is completed and depending on the treaties it has with other countries the tax will be adjudicated.I will need to peruse the agreement before I can give detailed opinion.for further query contact 9312411481.

Read more
Answered on 3/04/14, 3:10 am


Related Questions & Answers

More Tax and Taxation Law questions and answers in India