India Should I pay income tax for my apps sold by Microsoft thru its app store in US?

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I am an Indian software developer.

I am selling apps not directly to anybody, but thru the Microsoft app store which is in the United States.

Customers purchase the app from the Microsoft app store. Then Microsoft deducts some amount from it and deposits the remaining to my bank account in India.

My questions are,

1) Should I pay income tax to India for these revenues?

2) Microsoft has got a sign from me in the tax treaty form W-8BEN. What is the purpose of it?
 

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