India–US cross-border tax: treaty, withholding, PFIC and GILTI.

How payments and holdings between India and the US are taxed — treaty positions, withholding and 15CA/15CB, US-person exposure, and transfer pricing, in one place.

Start with the treaty

Most India–US payments turn on the India-US tax treaty: residency, permanent establishment, and the article for the payment (royalties, fees for included services, business profits, capital gains). The taxpayer applies the lower of the treaty or domestic rate, with a Tax Residency Certificate and Form 10F.

Withholding & 15CA/15CB

Payments from India to a US recipient attract TDS under the Income-tax Act, 2025 (erstwhile Section 195 of the 1961 Act). Each remittance needs Form 15CB (a CA certificate) and Form 15CA before the AD bank releases funds.

US-person exposure

• PFIC on Indian mutual funds and certain holdings.
• GILTI / Subpart F on controlled foreign corporations.
• FBAR & Form 8938 / 5471 disclosures.

We hold the India-side position and coordinate with your US CPA so both returns agree.

Transfer pricing

Indian arms of US groups (including GCC captives) document arm's-length pricing — Safe Harbour, APA or a benchmarking study — on Form 3CEB.

Common questions

This guide is general information, not legal or tax advice; positions turn on the facts of each case and the notified Rules. Get in touch for advice on your situation.