If the same is taxable in US then it will not be considered for gst in india
Treatment of royalty in USD in GST returns
We are receiving royalty and sale proceeds from Amazon originally in USD (converted to INR and credited to our account by Amazon after 3 months) Question is - should we treat this inflow as EXPORT TURNOVER or DOMESTIC TURNOVER while filing GST returns
Asked 6 years ago in Taxation
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6 Answers
The royalty you receive must be for some product or logo or software that you designed and is being consistently used by the company.
Therefore it must have been done in India and hence the laws of India shall apply. Amazon India is a subsidiary of Amazon and therefore it is a domestic transaction and hence domestic turnover.
Regards
Hi Sir How do we know it is taxable in US or not
Asked 6 years ago
As no deduction is made from your account prima facie proves that it is not chargeable. But still it's better if you inquire in detail.
The GST for royalty is at 18%.
You may have to pay it at this rate which can be considered as GST for domestic turnover.
If you have details about the taxes paid in US then you can produce it here to waive the GST payable in India.
Check with the Amazon, if payment is received after deduction of TDS, if yes than Amazon will provide certificate in same way Form 16A issued by party who deducts TDS. Same will record in your I T reruns so that double taxation can be avoided. Dual taxation treaty with US, so quite possibility of TDS deduction.
It will consider as Export turnover if product delivers out of India.
