Publishing on KDP from India

KDP's help page on marketplaces states: "amazon.com.br, amazon.com.in, and amazon.com.mx do not support paperback and hardcover distribution." The same page adds: "You may find a detail page created on Amazon.in to reflect the title availability, which are listed by third party sellers."

KDP's language list marks these Indian languages "eBook only": Hindi, Tamil, Malayalam, Marathi and Gujarati. English is listed without an "eBook only" restriction.

KDP says royalty payments for eBook sales on Amazon.com and print book sales on Amazon.com, Amazon.co.jp, Amazon.com.au and Amazon.ca "are subject to 30% US tax withholding". It adds that you may be eligible for a reduced rate if your country of residence has an income tax treaty with the United States.

If you have a US tax identification number, KDP asks for it. If you do not, KDP says you may enter the income tax identification number issued by the tax authority in your country of residence. Your tax form expires on the last day of the third succeeding calendar year from the date signed, and you then update your tax profile.

The India-US tax treaty (Article 12) says royalties paid to a resident of the other country may be taxed in the country they arise, but that tax "shall not exceed" 15 percent of the gross amount in the years after the first five. Article 12 defines royalties as payments for the use of "any copyright of a literary, artistic, or scientific work". Which rate KDP applies to you is what your tax interview shows; ask your CA whether the treaty rate applies to your royalties.

KDP pays royalties approximately 60 days after the end of the month in which the sale was reported (90 days for Expanded Distribution), provided you meet the minimum threshold.

Direct deposit (EFT) has no threshold: "you'll be paid electronically in full no matter the amount accrued." Check and wire payments need a $100 USD minimum in most marketplaces.

Once paid, direct deposit to a bank in India can take 7 to 10 business days past the payment date to show in your account. Wire payments can take 5 to 10 days.

The government texts below are quoted as issued. Later amendments may have changed them; treat each as a starting point for your CA, not a current rate card.

• Ebooks. Notification No. 13/2018-Central Tax (Rate), 26 July 2018, in force from 27 July 2018, substitutes serial number 22 of Notification 11/2017 with an entry for "Supply consisting only of e-book" under heading 9984, at 2.5 in the central tax rate column. It defines "e-books" as "an electronic version of a printed book (falling under tariff item 4901 in the First Schedule to the Customs Tariff Act, 1975) supplied online which can be read on a computer or a hand held device." Ask your CA: does this entry cover my ebook sales, what state or integrated tax applies alongside the central tax, and is it still the current rate?
• Printed books. Notification No. 2/2017-Central Tax (Rate), 28 June 2017, exempts from central tax on intra-State supplies the goods at serial 119: heading 4901, "Printed books, including Braille books". Ask your CA: how does this exemption apply to my paperbacks, and what does it mean for input tax credit on my costs?
• Registration. Ask your CA: do I need a GST registration for royalties from KDP, which pays me from outside India, and if so from when?
• Tax withheld in the US. The Income Tax Department says Form 67 is filed by "a resident taxpayer who has credit for the amount of any foreign tax paid in a country outside India", on or before the due date for the return of income under section 139(1). Ask your CA: can I claim credit for the tax KDP withholds, and what proof do I keep?
• Income tax return. Ask your CA: under which head do my KDP royalties belong, "Income from Other Sources" or "Profits and Gains of Business or Profession", and how are my costs treated?

Because KDP does not distribute paperbacks on Amazon.in, authors who want a printed book sold in India can look at Indian print-on-demand and self-publishing services. Two examples: Notion Press and Pothi.com. Compare what each one prints, where it distributes and what its terms say, on its own site.

AuthorKit, which runs this site, offers self-publishing services.