My understanding is that if the work is done overseas, it is not subject to US
taxes and is either expensed or capitalized in the buying company just like a
contract to a US company.
I would also like to know ... What if the Indian company is a wholly owned
subsidiary of the US company?
Other questions:
What if the Indian company has an office in the US?
What if part of the work is done in the US?
WebMaster wrote:
> I have a US corporation and want to give software development services to an
> Indian Private Limited company. I want to know what formalities my
> corporation has to do (any tax witholding, reporting to IRS) to pay to this
> Indian (non-US based overseas) company.
>
> I checked with some CPAs but got different answers. Can anyone give any
> information or contact details of CPAs/professionals who can guide me in
> this.
>
> Thanks,
> Rupesh
>
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Thanks.
Warm regards,
Narayanan Subramanyan
President & CEO
Mentorware, Inc.
408.566.8800 x201
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