TreatyIndia–US DTAA
RiskPE & tax residence
PaymentsForm 15CA/CB
OutboundFEMA ODI
USA desk · India–US
A US company is a US taxpayer. Indian residents who own it, work for it, or receive dividends still have Indian tax and FEMA work to do. A state filing does not make the income tax-free in India.
What this file usually covers
- India–United States Double Taxation Avoidance Agreement — dividends, interest, royalties, and business profits follow treaty articles and limitation-on-benefits tests.
- Permanent establishment risk if the US company is managed from India or has a dependent agent in India.
- Form 15CA/CB and withholding when an Indian company pays the US entity for services, royalties, or interest.
- FEMA outbound investment when Indian residents subscribe to US share capital or send share-application money.
- NRI or US-resident individuals — split-year, residence tie-breaker, FBAR/FATCA where they apply, and Indian foreign-asset reporting.
- Transfer pricing if associated Indian and US entities trade goods, services, IP, or intra-group finance.
How we keep both files on the same facts
- 1List owners, officers, where decisions are made, and every India–US payment.
- 2Characterise dividends, services, royalties, and finance under the DTAA.
- 3Align IRS numbers, Indian ITR, 15CA/CB, and FEMA papers.
- 4Review PE and residence if people or contracts move mid-year.
PJRJ’s international tax desk in Delhi and Gurgaon leads the analysis. US filings that must be signed locally stay with US CPA partners. This page is general information, not an opinion on your residence or PE.
India–US Cross-Border Tax FAQs
No. Indian residents remain taxable on worldwide income unless a specific exemption applies. Treaty relief under the India–US DTAA, PE analysis, dividend characterisation, and FEMA ODI reporting still apply. We coordinate both files.
Discuss your India–US requirements
Speak with a PJRJ USA desk partner — we respond within one business day.