US-India Tax & Cross-Border Advisory
The economic corridor between the United States and India encompasses technology outsourcing, venture funding, executive mobility, and substantial cross-border capital investment. NTaxSolution provides structured tax and regulatory advisory within the Indian legal and tax framework for US investors, founders, and Non-Resident Indians.
Tax & Treaty Framework (DTAA)
The US-India Double Taxation Avoidance Agreement (DTAA) governs the allocation of taxing rights over business profits (Article 7), dividends (Article 10), interest (Article 11), royalties and fees for included services (Article 12), and capital gains (Article 13). Critical issues frequently involve withholding taxes under Section 195 of the Indian Income-tax Act, Form 15CA/15CB certifications, Foreign Tax Credit (FTC) under Form 67 in India, and Foreign Account Tax Compliance Act (FATCA) disclosures.
Commercial & Business Context
Many technology startups establish 'Delaware Flip' or twin-company structures, where a Delaware C-Corporation owns an Indian operating subsidiary under a master services agreement (Cost-Plus Transfer Pricing). We advise on the Indian tax, FEMA, and transfer pricing implications of such corporate architectures.
Core Compliance Focus Areas
- FEMA reporting via RBI FIRMS portal for foreign direct investment inflows into India
- Transfer pricing benchmark documentation (Section 92D) for cross-border software and support transactions
- Lower TDS certificates (Form 13) for US citizens and NRIs liquidating Indian residential property
- Schedule FA (Foreign Assets) and Schedule FSI reporting in Indian tax returns for repatriated residents
- Assistance with Form 10F and Tax Residency Certificate (TRC) validation for US treaty benefit claims in India
Advice is rendered regarding Indian tax implications under the Income-tax Act, 1961, FEMA regulations, and applicable DTAA provisions. For domestic tax filings in United States, coordination with local CPAs is advised.
Frequently Asked Questions
Does NTaxSolution provide US federal or state tax (IRS) filing services?
NTaxSolution specializes in Indian direct tax, FEMA compliance, and Indo-US tax treaty advisory. For US domestic tax filings (such as IRS Form 1040, 1120, 5472, FBAR, and state returns), we collaborate with US CPAs to ensure seamless dual-jurisdiction compliance.
How does an Indian subsidiary bill its US parent company?
Typically, the Indian subsidiary executes an Arm's Length Inter-Company Service Agreement on a Cost-Plus basis. The Indian entity invoices in foreign currency and qualifies for zero-rated export of service under GST through an LUT (Letter of Undertaking).
Planning transactions between United States and India?
Discuss withholding tax certification, Form 15CA/15CB, or entity formation with our team.
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