Export Service from India (SEZ) to USA

[Sai Prasad]

Does USA entity require to deduct WHT for services from India (SEZ)?

If yes, please confirm the rate at which it will be dedcuted.

AI Summary

USA entity not required to withhold tax on services from Indian SEZ unit under treaty provisions A discussion forum addressed whether a USA entity must deduct withholding tax on services from an Indian Special Economic Zone unit. Two respondents confirmed that no withholding tax is required under U.S. tax law and the India-U.S. Double Taxation Avoidance Agreement, provided the Indian entity has no Permanent Establishment in the USA and services are performed entirely in India. The applicable withholding tax rate is 0% for such business profits, with proper treaty documentation required through Form W-8BEN-E.