Need help, Taxation Google adsense revenue?

Question

For non-resident alien, non-us citizen who has no other US business connection and only getting revenue from google adsense. Is he taxable in USA, if the his country (india) has a bilateral agreement with US?

In case answer in yes

1) Does he get basic expemption of US 3200 pa (for 2006) for his status category?
2) Is it mendatory for him to file returns in USA?
3)Is it cumpolsary to get TIN (tax idenification number) in USA?

If the answer is no
1) Is he supposed to pay tax and file returns in India?
2) Is it mendatory for him to file returns in USA?
3)Is it cumpolsary to get TIN in USA?

-already reffered some stuff in "www.irs.gov" but could not clearly understand
- income generated currently (at this stage) is not big enough for appointing tax advisor

NotEasilyFooled · Accepted Answer

The general rule, as I understand it, is that the source of income for US tax purposes is the location at which the work is done. Thus, if all the work was done in India, you would not owe US tax on it.

I don't believe that a TIN would be required.

I don't know for sure how India would view the income, but I suspect they will want to tax it.

q4tax · Answer

Are you resident of India? If yes, the income from Google Adsense is taxable in India because for Resident Indian , global income is taxable.
   If the income sustained TDS in USA , there is provision under I T Act for relief from double taxation of same income under Section 91 .
  I do not know the implication under US tax laws if you are USA resident.

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Need help, Taxation Google adsense revenue?

2 Answers