Zahlungen für in Indien ansässige Partner

PAN (Permanent Account Number) is the tax identity number in India. A PAN is a mandatory document for onboarding any service vendor in India. As per tax laws, if any vendor has provided a PAN, then payments issued to them will be subject to the standard withholding tax rate prescribed in the law (depending upon the nature of service). Otherwise, a higher withholding rate of 20% shall be applicable.

Individual: If vendor is an individual (in other words, sole proprietor) or HUF (Hindu Undivided Family), then that vendor must select “Individual” as the Tax Classification in the tax interview.

Business: If vendor is a Partnership Firm, Company, LLC, LLP, AOP, Trust, Body of Individuals, or Local Authority, then that vendor must select “Business” as the Tax Classification in the tax interview.

The Legal name provided during the tax interview should match exactly with the name appearing in the PAN document. If the vendor is a sole proprietor or an individual, they are required to update their name as provided in the PAN document.

If you (the vendor) are an agent acting as an intermediary, please select Yes. If you are not an agent, please select No.

Note: If you select Yes, you will be required to fill out a supplemental tax questionnaire and upload it on the second page of the tax interview. This is a declaration in which you confirm that you are the agent who will be receiving payments on behalf of the beneficial owner. Along with your details, you’ll also need to provide the beneficial owner’s tax details. There are 2 different sections in the declaration: The first part is for the agent’s details and the second part is for the beneficial owner’s details.

Domestic digital vendors should select the income type Other Royalties, which is subjected to 10% tax unless an LDC is provided.

LDC stands for Lower Deduction Certificate, which is issued by the Income Tax Authorities on the back of an application made by a payee for availing the benefit of lower tax withholding on their payments. Each LDC bears a unique Certificate Number and consists of details of the payee’s name, PAN, service category, beneficial Tax Deducted at Source (TDS) rate, validity period, and threshold amount. It also consists of the name & TAN of the Amazon Entity to which it is issued. The benefit of lower withholding can be availed by a payee subject to the date of expiry of validity / threshold amount (whichever is earlier).

1. Log in to Video Central Slate
2. Navigate to the Financial section
3. Click on Earnings
4. Select Summary Page
5. Choose the desired territory from the dropdown
6. Click on the payment values for that territory
7. Scroll to the bottom of the page to view the invoices with payment due dates

If your invoice has been rejected, several common reasons may explain the rejection. Common invoice validation errors include missing or incorrect vendor address, PAN number, and banking details, while Amazon-related issues often involve incorrect GST and PAN numbers.

To understand the rejection reason, follow these steps:

1. Log in to the Slate portal
2. Click on Invoices and Payments on the home page
3. Locate the cancelled invoice in the list through Disbursement ID
4. Hover your cursor over the Status option next to the Disbursement ID of the cancelled invoice
5. The rejection reason will be displayed

Once the reason is identified, please rectify the issue and re-upload the invoice in the portal.

Below are some common rejection reasons:

• Incorrect bill-to address
• Wrong mailing or scanning address
• Wrong GST percentage
• Missing or incorrect digital signatures
• Wrong IRN numbers
• QR code validation failures
• Non-legible QR code images that cannot be scanned properly

Guidance on PVD payment system and GST details for No-Billing partners:

Payment Processing: Our PVD payment systems are designed to operate automatically. Please note that our remittances to you include all applicable taxes (inclusive of Goods and Services Tax (GST)). While the remittance may not itemize the tax components separately, the total amount includes these taxes as per Indian Tax laws. To clarify, the offered rates per hour represent the base rate, but the remitted amount includes the base rate and applicable GST.

Invoicing: You are not required to submit invoices to Amazon Seller Services Private Limited (ASSPL) for payments processed through our PVD systems. However, it is advisable to generate and retain invoices and other relevant documents for your tax compliance purposes. For your reference, here are our company details:

Entity: Amazon Seller Services Private Limited
State: Karnataka
CIN: U51900KA2010PTC053234
PAN: AAICA3918J
Service Tax Reg. No: AAICA3918JSD001
GST ID: 29AAICA3918J1ZE
Address: Sattva Horizon, 2nd Floor, Survey No 6/1 and 7/1, Vinayak Nagar Kattigenahalli, Venkatala Village, Yelahanka Hobli, Bengaluru, Karnataka, 560064, India

To obtain information about any potential missing payments, please follow these steps:

1. Navigate to the Financial tab within Video Central and filter the data for the desired reporting period
2. Apply a filter to the Payment Status control to show only items with status “PENDING"; by reviewing the Expected Payment Date column, you will be able to understand the payment due date
3. If the payment status is pending or you encounter other issues, please navigate to the Contact Us page, selecting topic Payment and Reporting > Financial Dashboard

Here is the invoice template you can use: Sample Invoice Template.docx

As the payment due date approaches, please review the following instructions on how to submit an invoice through the new process:

a) Sign in to your SLATE account
b) Once logged in, select “Invoices and Payments”
c) Start invoice submission by selecting the “Create Invoice” button to begin the VIB submission workflow
d) Fill out the webform with the required fields

Note: Please note the following when entering an invoice number:

• Invoice number must be unique
• India GST regulations only permit fewer than 16 characters for invoice numbers
• Only "-" and "/" special characters are allowed in the invoice number

e) ONLY for vendors who are e-invoicing eligible: Please attach your IRP-approved invoice. Attach a PDF of your official invoice. Be sure to attach your IRP-approved QR code or your invoice will not be accepted. A sample invoice is attached for your reference.

f) Submit your invoice. You are done! Amazon will review your invoice and contact you if there are any concerns; otherwise, it will be paid on or before the contractual due date.

Review the attached document for more information on the new invoicing submission process: Invoicing Guide Amazon Prime Video.docx

1. Log in to SLATE with your credentials
2. In the top right corner, click the account symbol dropdown menu
3. Select ‘Payees, Bank and Tax’
4. Click on ‘Payees’ and locate the required payee setup, then click edit
5. Once in the payee setup screen, navigate to the ‘Bank Information’ section below
6. Delete the existing bank details and click “Add new bank details”
7. Once added, click Save

Instructions on how to edit your bank and tax information can be viewed on our Support page: https://videocentral.amazon.com/support/financial-onboarding-payment-and-tax-information/banking-information

As a standard practice for managing Lower Deduction Certificates (LDC) and ensuring tax compliance, we would like to outline our policy guidelines. Once we receive a valid LDC from the tax authority, we will implement the lower withholding tax rate within a 30-day timeframe from the LDC’s issuance date. It is important to note that any transactions where withholding tax was deducted at the statutory rate before the LDC implementation will remain unchanged. In cases where excess tax has been withheld at the statutory rate (compared to the LDC rate), you have the option to claim or adjust this amount in your Corporate Income Tax (CIT) return. We value your cooperation in adhering to these guidelines for smooth tax processing.

1. Log in to the Slate portal
2. Click on Invoices and Payments
3. Select the Paid Invoices tab
4. View all paid invoices along with the TDS line items showing deductions
5. Review the TDS line for the description of the amount deducted
6. Alternatively, calculate the TDS percentage by dividing the TDS line amount by the invoice value
7. To check multiple invoices, click Export to CSV to download the paid invoice data

If the issue remains unresolved, please contact India Tax using the following steps:

1. Log in to Slate Dashboard
2. On the My Account page, click on “Payee setup” (if you are associated with multiple entities, select the appropriate entity)
3. Click “view/provide tax information” under the tax information section and enter the tax dashboard
4. Click on “Help” at the top of the page
5. If your query is not addressed in the FAQ, create a case under “I didn’t find my answer” by selecting the appropriate problem title for your query (General Tax Questions / Tax Interview / Tax Rate / Form 16A)
6. Write your query in detail with relevant invoice details and submit

Please use the following steps and submit your query with detailed information, including the invoice number, to request the WHT certificate:

1. Log in to Slate Dashboard
2. On the My Account page, click on “Payee setup” (if you are associated with multiple entities, select the appropriate entity)
3. Click “view/provide tax information” under the tax information section and enter the tax dashboard
4. Click on “Help” at the top of the page
5. If your query is not addressed in the FAQ, create a case under “I didn’t find my answer” by selecting the appropriate problem title for your query (General Tax Questions / Tax Interview / Tax Rate / Form 16A)
6. Write your query in detail with relevant invoice details and submit

Please contact India Tax using the following steps:

1. Log in to Slate Dashboard
2. On the My Account page, click on “Payee setup” (if you are associated with multiple entities, select the appropriate entity)
3. Click “view/provide tax information” under the tax information section and enter the tax dashboard
4. Click on “Help” at the top of the page
5. If your query is not addressed in the FAQ, create a case under “I didn’t find my answer” by selecting the appropriate problem title for your query (General Tax Questions / Tax Interview / Tax Rate / Form 16A)
6. Write your query in detail with relevant invoice details and submit

Please contact India Tax using the following steps:

1. Log in to Slate Dashboard
2. On the My Account page, click on “Payee setup” (if you are associated with multiple entities, select the appropriate entity)
3. Click “view/provide tax information” under the tax information section and enter the tax dashboard
4. Click on “Help” at the top of the page
5. If your query is not addressed in the FAQ, create a case under “I didn’t find my answer” by selecting the appropriate problem title for your query (General Tax Questions / Tax Interview / Tax Rate / Form 16A)
6. Write your query in detail with relevant invoice details and submit

Please contact India Tax using the following steps:

1. Log in to Slate Dashboard
2. On the My Account page, click on “Payee setup” (if you are associated with multiple entities, select the appropriate entity)
3. Click “view/provide tax information” under the tax information section and enter the tax dashboard
4. Click on “Help” at the top of the page
5. If your query is not addressed in the FAQ, create a case under “I didn’t find my answer” by selecting the appropriate problem title for your query (General Tax Questions / Tax Interview / Tax Rate / Form 16A)
6. Write your query in detail with relevant invoice details and submit

At present, we do not have a systematic process in place to reverse WHT on issued credit notes. Amazon is actively working on aligning multiple invoice systems to address this issue. We anticipate launching this solution in the near future.

Until the new system is implemented, we advise you to claim credit for any WHT not reversed on credit notes in your Corporate Income Tax (CIT) or personal income tax return.

When working with your consultants and tax authorities, there may arise a need for you to provide a reconciliation clearly indicating that the transaction amount in Form 26AS is higher due to the non-reversal of WHT on credit notes by Amazon.

We will notify you promptly once our new system for handling WHT on credit notes is operational.

We appreciate your understanding and cooperation during this transition period.

Thank you for your continued partnership with Amazon.

When making payments to a non-resident outside India, it is crucial to ensure compliance with tax treaty (also known as Double Tax Avoidance Agreements, or DTAA) requirements and withholding tax provisions under the Indian Income Tax Act, 1961. Below are the documents that non-resident vendors must provide to Amazon during the tax interview process and before making such payments:

Permanent Account Number (PAN) of the Non-Resident: If the foreign vendor has obtained a PAN in India, they are required to furnish this information to Amazon. Failure to provide a valid PAN may result in a higher withholding tax rate being applied, with taxes potentially being deducted at the maximum applicable rate.

Tax Residency Certificate (TRC): A TRC is issued by the tax authority in the foreign vendor’s home country and certifies that the non-resident foreign vendor is a resident of that country for tax purposes. It is an essential document for claiming treaty benefits and ensuring the correct withholding tax rate under the DTAA.

Form 10F: In addition to the TRC, the non-resident may also need to provide Form 10F. Form 10F must be completed and submitted by the recipient if the TRC does not include certain specific details such as: (a) Status, (b) Nationality, (c) Tax Identification Number, (d) Residential status. Form 10F is a self-declaration form that helps validate eligibility for treaty benefits. Form 10F is now required to be generated electronically by a foreign vendor on the Indian Income Tax portal.

No Permanent Establishment (PE) Declaration: Non-residents should provide a declaration stating they do not have a PE in India. Under most tax treaties, income is only taxable in India if the non-resident has a PE here, meaning a fixed base or presence that constitutes a substantial part of their operations. This declaration typically includes: (a) The nature of services or transaction details, (b) A statement confirming the non-resident has no PE in India, and (c) Declaration of no fixed place of business, dependent agents, or other factors triggering a PE as per the DTAA.

No Business Connection Declaration: No Business Connection Declaration is a crucial document for foreign entities conducting business with Indian companies. This declaration helps establish that the foreign entity/vendor does not have a taxable presence or “business connection” in India.

Self-Declaration for Beneficial Ownership: If the non-resident is the beneficial owner of the income, they may need to provide a self-declaration confirming this status. Beneficial ownership implies that the non-resident is the true owner of the income, not a mere intermediary. This is especially relevant for claiming lower withholding rates on royalties, interest, dividends, and fees for technical services.

• During the vendor onboarding process, the tax interview section includes attachments of the proforma tax treaty documents. These can be found on the dedicated tax interview page.
• In India, obtaining separate declarations for “No Permanent Establishment” (PE) and “No Business Connection” (BC) serves to clarify and strengthen the tax position for foreign companies and entities engaging with Indian businesses. Permanent Establishment and Business Connection are different legal concepts under India Tax Law and DTAA, with the definition of “business connection” broader than the definition of PE under Tax Treaties. Business Connection does not require as substantial a presence as PE and may be invoked with more indirect involvement (e.g., significant economic presence or sustained business transactions), which could lead to income attribution in India.

o avoid payment delays, it is essential to collect all required tax treaty documents during the vendor onboarding process.

The instructions in the document below can be referred to for generating an Electronic Form 10F.

If any required tax treaty document is missing, a higher withholding tax rate may apply, depending on the service type and the availability of various tax treaty documents.

To enable the upload option for all three treaty documents (TRC, Form 10F, and NOPE declaration), the following steps must be followed:

• Retake the tax interview
• Respond with “YES” to the treaty claim question
• The system will then display the options to upload all the required treaty documents

Yes, the acknowledgment copy of the TRC application can be uploaded for the relevant tax year if there is a prolonged delay in obtaining the TRC from the local tax authorities. However, the tax interview must be retaken to upload the TRC once it is issued by the tax authorities of the home country.

The LDC document can be uploaded during the tax interview. However, the LDC benefit will only be provided if valid treaty documents are also submitted. Uploading the LDC alone does not guarantee the benefit, as it is contingent upon the presence and validity of the supporting treaty documentation. This is applicable only for non-residents who have secured the LDC from the Indian Tax Authorities.

For non-resident vendors outside India, it’s crucial to ensure compliance with tax treaty (also known as Double Tax Avoidance Agreements, or DTAA) requirements and withholding tax provisions under the Indian Income Tax Act, 1961. Non-resident vendors should provide the following documents to Amazon during the tax interview process to determine a lower WHT%. These docs are only required if vendors want to claim a lower rate.

• Tax Residency Certificate (TRC)
• Form 10F
• No Permanent Establishment (PE) Declaration
• Self-Declaration for Beneficial Ownership: If a non-resident is the beneficial owner of the income, they may also need to provide a self-declaration confirming this status. Beneficial ownership implies that the non-resident is the true owner of the income, not a mere intermediary. This is especially relevant for claiming lower withholding rates on royalties, interest, dividends, and fees for technical services.
  

The tax interview page includes attachments of the pro forma tax treaty documents.

To avoid payment delays, it is essential to collect all required tax treaty documents during the vendor onboarding process.

The instructions in the following PDF document can be used to generate an electronic Form 10F.

Form 10F online filing steps.pdf

If any required tax treaty document is missing, a higher tax withholding rate may apply.

To access the upload option for the 3 required tax treaty documents (TRC, Form 10F, and NOPE declaration):

1. Retake the tax interview in the tax dashboard.
2. Under If you are a non-resident of India, do you want to claim the benefit of a reduced withholding tax rate pursuant to a tax treaty? click Yes.
   You’ll then see options to upload all required treaty documents