Hydrochem LLC, a US-based company, sought guidance from Majmudar & Partners regarding the necessity of obtaining a withholding tax certificate in connection with an agreement to provide services to an Indian company.

Facilitating the Transaction

Majmudar & Partners provided comprehensive assistance to Hydrochem LLC by:

• Assessing Withholding Tax Obligations: Analyzed the nature of services to determine applicable withholding tax rates under Indian tax laws and relevant Double Taxation Avoidance Agreements.
• Advising on Certificate of Lower Deduction: Guided the process of obtaining a certificate for lower or nil deduction of tax at source, if applicable, to optimize tax efficiency.
• Ensuring Compliance: Outlined the procedural requirements for obtaining the withholding tax certificate, including necessary documentation and timelines, to ensure adherence to Indian tax regulations.
• Coordinating with Indian Authorities: Facilitated communication with Indian tax authorities to streamline the certification process and address any queries or concerns.

Hydrochem LLC’s engagement with an Indian company required precise navigation of withholding tax obligations to ensure compliance with Indian tax regulations. Majmudar & Partners’ comprehensive guidance facilitated seamless compliance, reducing legal and financial risks and enabling Hydrochem to focus on its core business objectives.

Majmudar & Partners specializes in providing expert legal and tax advisory services for cross-border transactions in India. Contact us today to ensure your business operations are compliant, efficient, and strategically structured for success.