Foreign receipt

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Rohit (Querist)

30 May 2012 one of my client is in a process of receiving fees in foreign currency from a customer resides in USA. That USA based customer has sent a form W-8BEN. can anyone give me a brief about this form.
who are required to fill up this form
why this form is required
EIN is mandatory for this form or not
kindly suggest.

CA.Mini

CA.Mini (Expert)

31 May 2012 W-8 Ben is the certificate of Foreign status of Beneficial owner for US Tax withholding.Foreign persons are subject to tax @ 30% on income they receive from US sources(interest,dividends, royalties,rents,premiums,annuities,compensation for services performed,substitute pmts in Security lending transaction,other fixed or determinable annual/ periodical gains or income.)if u receive certain types of income u must provide Form W-8 Ben to establish that u are not a U.S person.U must give Form W-8 Ben to the withholding agent or payer.if ur client is a U.S citizen or other U.S person do not use W-8 Ben instead ,use Form W-9(request for Tax Identification no. and Certification)

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