Invoice Requirements: India → United States
🇮🇳India freelancers billing🇺🇸United States clients — required fields, VAT treatment, and compliance rules.
Indian freelancers invoicing US clients are required to submit Form W-8BEN to avoid 30% withholding. The India-US tax treaty reduces the withholding rate to 15% for most services, though certain categories may qualify for 0%. Indian freelancers must also comply with Indian GST export rules — services exported from India are zero-rated for GST purposes and may require a Letter of Undertaking (LUT) filed with the GSTN.
Required
Provide Form W-8BEN to your US client before receiving any payment to avoid 30% US backup withholding on your service income.Required
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Indian freelancers qualify as non-US persons under the IRS rules. The W-8BEN also lets you claim the reduced withholding rate under the India-US Double Taxation Avoidance Agreement (DTAA).
The India-US DTAA generally reduces US withholding on technical services and royalties to 15%; claim this rate on Form W-8BEN by citing the treaty and the applicable article.Required
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The standard US withholding rate is 30%, but India-US DTAA Article 12 (Royalties) and Article 15 (Independent Personal Services) may reduce the applicable rate. Consult a tax adviser to confirm which article covers your service type.
Invoice in USD; RBI regulations require Indian freelancers to repatriate foreign currency earnings within 9 months of the invoice date.Required
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Earnings received in USD must be credited to an EEFC (Exchange Earners' Foreign Currency) account or converted to INR within the RBI-specified period. Keep invoice records to satisfy FEMA compliance requirements.
GST registration is mandatory in India once your aggregate annual turnover exceeds ₹20 lakh (₹10 lakh for special category states); exported services are zero-rated under GST if a Letter of Undertaking (LUT) is filed.Required
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Export of services under GST is treated as a zero-rated supply. File Form GST RFD-11 (LUT) at the start of each financial year to export services without paying IGST. Without an LUT, you must pay IGST and later claim a refund, which delays cash flow.
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State clear payment terms (typically NET 30) on every invoice; US clients expect milestone or NET 30 terms for project-based work.
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