India has a tax treaty row in the IRS table, so a W-8BEN from India can claim a reduced rate on royalties instead of the default 30 percent. The IRS lists 15 for patents and copyrights. You'll need your PAN on the form, and treaty benefits depend on your own situation, so check with a local accountant.
If you earn from US platforms from an Indian home base, the W-8BEN is the form that decides how much US tax comes off your payments before they reach you. I've gone through the IRS instructions, the IRS treaty table and India's own Income Tax Department pages, and I've kept to what they say. I'm a marketing consultant, not an accountant, so treat this as a map and not as advice.
What the IRS table lists for India
The IRS treaty table gives the country its own row. That matters, because countries without a row fall into a catch-all line that shows 30 in every royalty column. For India, the royalty columns read 10 for industrial equipment and 15 for know-how, patents, film and TV, and copyrights.
The IRS also warns that the table isn't a full guide to every eligibility condition, and it tells readers to check the treaty text itself. So the numbers show you where the treaty sits. They don't promise that your particular payment qualifies.
The footnote that's specific to India
One footnote in the table is written for India alone. It says the rate also applies to fees for included services, and points to the article of the US-India treaty that deals with them, plus a memorandum of understanding. If you sell consulting or technical help to a US company, that wording is worth reading with your accountant, because the label on your invoice may matter.
PAN is the number the form wants
The IRS instructions say that to claim certain treaty benefits you complete line five with a US number or line six with a foreign tax identification number. For someone in India, the foreign number is your PAN. India's Income Tax Department describes it as a ten-character code made of letters and digits, and says a person may hold only one.
The department also says Aadhaar must be linked to PAN and that an unlinked PAN can become inoperative. If yours has been sitting unused, sort that out before you submit a form that quotes it. Eligible individuals can get an instant e-PAN in PDF form based on Aadhaar, which the department says is free and carries the same validity as the physical card.
Non-residents of India, use different application forms: the department names Form 95 or Form 96, while residents use Form 93 or Form 94.
Line ten and the royalty trap
The IRS instructions say you must complete line ten if you claim treaty benefits on royalties and the treaty has different rates for different types of royalties. India's row is exactly that: ten for industrial equipment and fifteen for the others. So you'd normally state the type of income and the treaty article you're relying on. Guessing here is how forms get rejected, so ask the platform or your accountant which category your income falls under.
| What I checked | What the official pages say for India |
|---|---|
| Treaty row in the IRS table | Yes, India has its own row |
| Patents and copyrights columns | 15 each |
| Industrial equipment column | 10 |
| Special footnote | Rate also applies to fees for included services |
| Foreign tax number | PAN, one per person, linked to Aadhaar |
| Default if no valid form | 30 percent withholding |
What happens if you skip it
The IRS instructions say that failing to give a W-8BEN when asked may lead to withholding at 30 percent, or at the backup withholding rate. Google says much the same for its payments, and adds that it can't decide for you whether you qualify for a treaty rate. Patreon's help centre goes further: creators who aren't US citizens must submit a W-8BEN before they can pay out their funds.
Amazon KDP's help says its royalties on some sales carry 30 percent US withholding, that you need a TIN before the rate can be reduced, and that you should look in the royalties column under copyrights for your country's treaty rate. For Indian authors, that column reads 15.
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How long the form lasts
According to the IRS instructions, a W-8BEN generally stays in effect from the day you sign it until the last day of the third calendar year after that. A change in circumstances can end it sooner, and you should tell the payer within 30 days. Moving to the United States is the obvious example, but so is any change to the details on the form. Put a reminder in your diary for the renewal, because lapsed forms push you back to the default.
If you're setting up a few platforms at once, the payout side matters too. I've covered how Payoneer works for people in India, what PayPal allows in India and how Amazon KDP pays authors in India, and each of them asks for the same tax form.
Questions to take to your accountant
- Which royalty category does my income fall into: patents, copyrights or something else?
- Does the included-services wording in the footnote affect my invoices?
- How do I report the income, and the US tax withheld, in India?
- Is my PAN linked and active before I submit the form?
Tax is personal, and the treaty has conditions the table can't show. Bring the platform's own tax page, the IRS table row and your payment statements, and let a local accountant make the call.
Frequently asked questions
Does India have a tax treaty with the United States?
The IRS treaty table has a row for India, with 15 listed for patents and copyrights and 10 for industrial equipment. The IRS says the table isn't a full guide to eligibility.
What tax number do I put on a W-8BEN in India?
The IRS instructions ask for a foreign tax identification number to claim certain treaty benefits. For individuals in India that's the PAN, which the Income Tax Department says is a ten-character code.
What is withheld if I don't submit a W-8BEN?
The IRS instructions say failing to provide the form may lead to withholding at 30 percent or the backup withholding rate.
How long is a W-8BEN valid?
The IRS says it generally lasts until the end of the third calendar year after signing, unless your circumstances change and make it incorrect.
Do Patreon creators in India need a W-8BEN?
Patreon's help centre says creators who aren't US citizens must submit a W-8BEN or W-8BEN-E before they can pay out their funds.
