Hi - that is correct - in India - fees for technical services paid to residents of the US are subject of mandatory withholding at the source of income
i. during first five years of the agreement
- 15 per cent if the payer is Government or specified organisation ;
- 20 per cent in other cases ;
ii. subsequent years, 15% in all cases
See for reference - http://law.incometaxindia.gov.in/Directtaxlaws/dtrr2005/R10.htm
Let me know if you need any help.
Thanks for your research. I'm not a techie. I'm providing business development services -- sales and marketing -- and not providing any technical services. I'm basically serving current customers as well as developing new ones. All technical services and production for digitization of content is done in India. All I'm doing is brokering the deal. Does that still fit into their definition of "technical" for US citizens who are contracted to find and develop new customers.? Thanks.
you do provide some service - and receive a compensation for that.
tax authorities will not investigate what exactly service you provide.
Any payment for services is considered as for technical services unless you are selling a tangible goods.
Please pay attention that withholding is different based on your residency.
See for reference - http://www.incometaxindia.gov.in/publications/9_Income_Tax_For_NRI/Chapter008.asp
Fees for technical services' means any consideration for the rendering of any managerial, technical or consultancy services, whether such consideration is paid in lump sum or in any other manner. It also includes consideration for providing services of technical or other personnel as part of their service contract. It, however, does not include consideration for any construction, assembly, mining or like projects undertaken by the recipient or consideration which would be income of recipient chargeable under the head 'salary by virtue of the existence of employer-employee relationship between the parties.