Foreign receipt

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Rohit (Querist)
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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)
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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)