06
FOR COMPANIES AND INDIVIDUALS OPERATING ACROSS BORDERS
Cross-Border Tax & Structuring.
Double Taxation Avoidance Agreement analysis across 90+ tax treaties, Form 15CA and 15CB certification, Outward Direct Investment structuring, PFIC and GILTI analysis for US persons, Section 195 TDS across global corridors.
TL;DR
DTAA analysis across 90+ tax treaties, Form 15CA/15CB certification, Section 195 TDS coordination, ODI structuring, and PFIC/GILTI analysis for US persons — cross-border tax done as one integrated stack, not siloed opinions.
How we help
We produce the position memo both the India-side auditor and the US CPA can sign off on, and we coordinate the 15CA/15CB certification through the credentialed CA on our panel.
01 · What we do
Cross-border tax advisory, treaty positions & structuring
We establish the correct, defensible tax treatment for every payment, asset and transaction that crosses India's borders — and document it to survive scrutiny. India has tax treaties (DTAAs) with 90+ countries, and the right answer usually turns on how domestic law interacts with the applicable treaty article.
What we handle
- DTAA & treaty positions — residency, permanent establishment, royalties, fees for technical services, capital gains, and the lower-of-treaty-or-domestic rate.
- Form 15CA / 15CB certification for foreign remittances, coordinated with your authorised-dealer bank.
- Withholding on foreign payments — TDS under the Income-tax Act, 2025 (erstwhile Section 195 of the 1961 Act), Form 27Q and Form 16A.
- Outward Direct Investment (ODI) under FEMA (OI) Rules 2022 — Form FC, Annual Performance Report, FLA and exit.
- US-person exposure — PFIC, GILTI / Subpart F, FBAR and Forms 8938 / 5471, coordinated with your US CPA.
- GAAR & substance — position memoranda and documentation for holding structures.
References to income-tax provisions follow the Income-tax Act, 2025 (effective 1 April 2026, replacing the Income-tax Act, 1961); we cite the erstwhile section where it aids clarity.
02 · Who this is for
Client profiles
Indian companies with cross-border revenue
Companies with foreign customers, foreign subsidiaries, foreign IP licensing, or foreign service providers, requiring DTAA analysis, TDS position memoranda, and transfer pricing alignment.
Foreign companies remitting to India
Foreign companies making payments to Indian recipients (services, royalties, dividends, interest, technical fees), requiring the treaty position from the foreign-side withholding obligation perspective.
Indian residents with foreign income
Indian residents receiving foreign-sourced income or holding foreign assets, requiring DTAA claims, Foreign Tax Credit claims under Section 90, and Schedule FA disclosure.
US persons with India connection
US citizens, green card holders, and US tax residents with Indian business interests, investments, or family holdings, requiring integrated India-US tax planning and FBAR/FATCA compliance.
03 · How we engage
Engagement structure
01
DTAA position memorandum
Treaty analysis for specific cross-border transactions or structures, with integrated position across source and recipient jurisdictions, supporting documentation list, and compliance pathway.
02
Form 15CA and 15CB certification
Operational issuance of Form 15CB certificates and Form 15CA filings for cross-border remittances, coordinated with the Authorised Dealer bank.
03
Outward Direct Investment structuring
ODI category selection, Form FC-RBI filing, annual Performance Report, FLA filing, and the divestment framework at exit.
04
US person India advisory
Integrated India-US tax advisory covering PFIC analysis, GILTI implications, FBAR and Form 8938 disclosure, and optimal structuring of India-side holdings.
04 · Representative scenarios
Illustrative engagements
Representative scenario
Royalty payment from Indian company to US parent
An Indian subsidiary licenses software from its US parent under a licensing agreement, with annual royalty of USD 2 million. Considerations: royalty classification under Article 12 of the India-US treaty (15% treaty rate, 25% domestic rate), TDS compliance under Section 195 at treaty rate, No-PE declaration from US parent (Form W-8BEN-E with India treaty election), Form 15CB certification per remittance, Section 92 transfer pricing position on the royalty rate (defensible 2% to 6% of revenue), and GAAR position on the licensing arrangement. Engagement: integrated position memorandum, per-remittance Form 15CA/15CB, and annual transfer pricing study.
Representative scenario
Indian individual investing in Singapore startup
An Indian resident is making a USD 500,000 angel investment in a Singapore-incorporated startup. Considerations: Outward Direct Investment route under FEMA OI Rules 2022, Form FC-RBI filing, structural choice (direct investment versus through LLP versus through Family Trust), future exit treatment (LTCG under Section 112 for unlisted shares, with treaty interaction), and annual reporting compliance (FLA Return, Annual Performance Report). Engagement: ODI structuring memorandum, Form FC-RBI filing, annual reporting, and exit advisory.
Representative scenario
US-citizen co-founder of Indian startup
A US-citizen co-founder of an Indian B2B SaaS startup, holding 35% equity in the Indian Private Limited Company, requires integrated India-US tax planning. Considerations: PFIC analysis of the Indian holding from US side (typically not a PFIC for active operating companies), GILTI analysis on controlled foreign corporation income, FBAR and Form 8938 disclosure of Indian holdings, Indian-side tax position on founder compensation and ESOP exercise, and potential restructuring to a Delaware C-Corporation parent. Engagement: integrated position memorandum, ongoing annual compliance support coordinated with US CPA, and flip-structuring memorandum if contemplated.
05 · Frequently asked
Questions clients ask
Is a Tax Residency Certificate sufficient to claim treaty benefits?
A TRC from the recipient's home jurisdiction is necessary but not sufficient. The full documentation typically required includes the TRC, Form 41 (Form 10F) (self-certification of treaty applicability), the No-PE declaration where applicable, and the underlying contract supporting payment classification. The Income Tax Department also retains the right to assess commercial substance, particularly for intermediate holding jurisdictions, under the GAAR framework.
What is the typical timeline for Form 15CB issuance?
For a routine cross-border remittance with complete documentation, Form 15CB issuance is typically 2 to 3 working days from instructions. Complex transactions (royalties with transfer pricing dimensions, intermediate jurisdiction holdings, novel payment structures) may take 5 to 10 working days, including the position memorandum supporting the certificate. Form 15CA is filed by the remitter (or by us on the remitter's behalf) following the 15CB issuance.
Does India have a tax treaty with my country?
India has DTAAs with over 90 jurisdictions including the US, UK, Singapore, UAE, Canada, Australia, Germany, France, Netherlands, Switzerland, Mauritius, Cyprus, Ireland, Luxembourg, Malta, and most major economies. The DTAA framework varies materially across treaties. Our position memorandum for any specific transaction covers the applicable treaty with the specific article references.
What is the difference between Form 15CA and Form 15CB?
Form 15CB is the Chartered Accountant's certificate certifying the tax position on a foreign remittance, including the nature of the payment, applicable tax treaty rate, and TDS compliance. Form 15CA is the remitter's declaration filed with the Income Tax Department in electronic form, typically accompanied by the Form 15CB. For remittances below certain thresholds or specified exempt categories, the requirements may be relaxed.
How is the equalisation levy different from Section 195 TDS?
Only one equalisation levy remains in force: a 6% charge on specified digital advertising services (the Google/Meta-style ad-spend levy), borne directly by the Indian payer rather than withheld from the non-resident. The broader 2% levy on e-commerce supply or services was withdrawn effective 1 August 2024 (Finance (No. 2) Act, 2024) — a payment made on or after that date is no longer subject to it, though the underlying Section 195 withholding position (or its absence, where there is no PE) is unaffected by the levy's withdrawal. Unlike Section 195 TDS, the surviving 6% levy is a direct liability of the Indian payer, not a withholding mechanism, and is in addition to (not in lieu of) any income tax obligation.
Does Advisory Monks Consulting coordinate with US CPAs for US person advisory?
Yes. Integrated India-US tax advisory typically requires coordinated work between an Indian Chartered Accountant (covering the India-side position) and a US CPA (covering the US-side position). Our practice operates routinely with US CPAs, and where the client does not have one, we can introduce qualified partners through our Global desk.
What's the reporting deadline after an outbound ODI investment, and what happens if it's missed?
The Indian entity must report the investment — via Form FC under the Overseas Investment Rules, 2022 — within 30 days of the transaction, and then file an Annual Performance Report for the overseas entity every year by 31 December. Missing the initial 30-day window doesn't void the investment, but it moves the filing into RBI's compounding process: a formal application, an admitted contravention, and a compounding fee scaled to the amount and the delay — a manageable but entirely avoidable cost if the filing is calendared from day one.
Can an Indian company claim foreign tax credit for withholding by a country with no DTAA with India?
Yes, though the mechanism is different from a treaty claim. Where no DTAA exists, relief is available under Section 91 of the Income-tax Act — India's unilateral relief provision — rather than a treaty's foreign tax credit article, generally capped at the lower of the foreign tax paid or the Indian tax payable on that income, computed income-item by income-item rather than treaty-article by treaty-article. Documentation mirrors the treaty case: proof of the foreign tax actually paid, filed via Form 67 alongside the Indian return.
Is Form 3CEB required even when related-party transaction value is below the specified threshold?
Form 3CEB itself has no separate value threshold — if a taxpayer has any international transaction or specified domestic transaction with an associated enterprise during the year, an accountant's report in Form 3CEB is required, regardless of size. What the specified thresholds actually govern is the depth of contemporaneous transfer pricing documentation required, and eligibility for Safe Harbour — a small transaction can still need Form 3CEB filed, just with lighter supporting documentation behind it.
What documentation supports a beneficial-ownership claim for reduced treaty dividend withholding?
Beneficial ownership isn't self-certified by the TRC alone — the payer and the Assessing Officer look for evidence that the recipient entity has genuine economic substance and discretion over the income, not just legal title passing through. In practice that means board minutes showing independent decision-making on the funds, no contractual or practical obligation to pass the income to a third party, adequate local staff and office presence relative to its function, and real economic risk rather than a conduit role. A TRC and Form 41 (Form 10F) remain necessary, but for larger dividend flows through an intermediate holding jurisdiction, the substance file is often what actually decides the position on audit.
Does an Indian startup need to register for Equalisation Levy on payments to a foreign SaaS vendor?
Not for the SaaS payment itself, in most cases — the 2% levy that would have covered e-commerce and digital services was withdrawn effective 1 August 2024. The surviving 6% levy applies specifically to digital advertising spend, not general SaaS subscriptions. Since this area has moved twice in recent Finance Acts, confirm the current position against the payment date rather than assuming last year's treatment still applies.
How does POEM risk apply to a foreign subsidiary managed day-to-day from India?
If a foreign subsidiary's key management and commercial decisions are, in substance, made in India rather than at its nominal offshore board, it risks being treated as an Indian tax resident under POEM (Place of Effective Management) and taxed here on its worldwide income — the opposite of what an offshore structure is usually built to achieve. The common failure pattern is a founder who relocates to India while continuing to run a Singapore or Delaware entity from Bengaluru: board meetings held on paper offshore, real decisions made over calls from India. The defence is documented substance — genuine board deliberation and minutes at the offshore location, local directors with real authority, and decisions that demonstrably happen where the paperwork says they happen.
“A rare combination of technical depth, strategic thinking and practical execution — across taxation, regulatory compliance and investment structuring.”
Related reading & tools
- Guide · India–US cross-border tax: DTAA, PFIC & GILTI
- Tool · DTAA withholding rate checker
- Tool · TCS on foreign remittances (LRS) calculator
- Guide · India–UAE cross-border tax
- Guide · India–Singapore cross-border tax
- Guide · India–UK cross-border tax
- Insight · India–US transfer pricing for FY26
- Case study · One India–US memo both sides signed off
- Insight · FAST-DS 2026: fix unreported foreign assets in six months
- Insight · Form 15CA/15CB: paying a foreign vendor without TDS trouble
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