India entity selling to US customers
Equalisation levy, Section 9 nexus, transfer pricing on related-party flows.
NRI Founders · Cross-border tax
Cross-Border Tax for NRI Businesses — DTAA, GAAR, Equalisation Levy and Section 9
The four pillars of international tax that quietly eat margin from NRI-owned cross-border structures — and the engagement that surfaces them before they become a notice.
Why this matters
The stakes, plainly.
Most NRI founders run lean and don't see the international tax exposure until a US audit or Indian assessment surfaces it. 10-25% of margin leakage is normal in unmanaged structures.
Common situations
Where this usually comes up.
Foreign IP holding company
Royalty withholding, GAAR exposure, beneficial ownership tests.
Founder dual-resident year
Personal tax residency and DTAA tie-breaker layered with company exposure.
What goes wrong
Expensive mistakes we keep cleaning up.
Royalty without WHT
Indian payer is personally liable for under-withheld tax.
Transfer price not documented
TP adjustment + penalty in assessment.
Beneficial ownership not established
Treaty benefits denied; full WHT applies.
What we cover
The engagement, in writing.
- 01Annual cross-border tax review
- 02Transfer pricing study and benchmarking
- 03Royalty, fees-for-technical-services and WHT mapping
- 04GAAR and PPT defensibility check
- 05Founder personal tax + company tax aligned position
Common questions
Answered, candidly.
- What is equalisation levy?
- 6% on online advertising payments to foreign vendors; 2% on certain e-commerce supplies to Indian customers.
- Do I need a transfer pricing study?
- Yes if related-party international transactions exceed ₹1 Cr in aggregate, with safe harbours for some categories.
- What is GAAR?
- General Anti-Avoidance Rules; broad anti-abuse provision. Defensible commercial substance is the safest position.
Authored authority
The frameworks on this page are drawn from NRI Tax Blueprint 2025 — written by Regi Tom Antony, FCA, the practicing CA who advises on the same problems every week.
On the record
What clients say after the plan ships.
“Regi mapped out the RNOR window before I moved and saved us nearly two years of needless India tax on our US brokerage. The plan was written, dated, and exactly what I needed.”
Recovered USD 38k in pre-empted tax via RNOR sequencing.
Figures reflect aggregate RTA & Associates client engagements, 1997–2025; individual outcomes vary.
Anand R.
Tech founder, returning from California
USA → India
“We sold our Bengaluru flat from Dubai. The Section 197 lower-deduction certificate alone freed up ₹42 lakh of working capital while the sale closed. No other CA we spoke to even raised it.”
TDS reduced from 14.95% to 4.1% via Form 13.
Figures reflect aggregate RTA & Associates client engagements, 1997–2025; individual outcomes vary.
Farah K.
Investment banker, Dubai
UAE → India
“Clear, direct, on the record. Regi told us what would and wouldn't work — and exactly what the next filing was. No upsell, no fog.”
Priya & Mahesh S.
Doctors, NHS, planning return
UK → India
Related
Keep going.
Powered by the wider practice
- RTA & Associates· Chartered Accountants
- NRI Tax Blueprint· Authored playbooks
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