Exporting Services to the USA From India: EDF, Invoicing and Payment Guide

The United States is the largest market for many Indian service exporters, and the compliance chain is the same as for any other country, just with American paperwork habits layered on top. You invoice in US dollars, collect by wire or ACH, declare each month's invoices on one EDF within 30 days from the end of the month, and realise each invoice within 9 months. Expect your US client's accounts payable team to ask for a W-8BEN-E form before they release the first payment.

Key takeaways

• Invoice in USD unless your contract says otherwise; show "United States" as the country in EDF Part 2B for each US client.
• Common payment routes are international SWIFT wires and US-domestic ACH into a collection account offered by a regulated provider.
• US clients usually ask Indian companies for Form W-8BEN-E (W-8BEN for individuals) to document foreign status. Your CA can help you complete it.
• India and the US have a tax treaty (DTAA). Whether any US tax applies to your fees, and how treaty benefits work, is a question for your CA.
• Each invoice must be realised within 9 months of its date; net-60 and net-90 terms fit, but slow AP cycles need watching.

Invoicing a US client

US clients are used to straightforward invoices, but your invoice also has to satisfy Indian GST and support your EDF. Include:

• your legal name, address, GSTIN and, where you have it, IE code;
• the client's legal entity name and US address (state matters to them for their own records);
• invoice number and date, which drive your EDF month;
• a clear description of services and the period covered;
• amount in USD, payment terms (net 30, net 45) and your bank or collection details;
• SAC code and, if you export under LUT, "Supply meant for export under LUT without payment of IGST".

US accounts payable teams often want a purchase order (PO) number on the invoice. If the client issues POs, quote them; missing PO numbers are a common reason US invoices sit unpaid. Our export invoice generator has fields for all of this.

Payment rails: wire or ACH

Many US companies prefer ACH because it is cheap and routine for them. If you offer an ACH option through a provider, find out how payouts reach India and what remittance evidence you get. See our glossary entry on ACH transfers for the basics.

W-8BEN-E and US tax questions

US payers document whether a vendor is foreign. For an Indian company, the usual form is Form W-8BEN-E; for an individual it is W-8BEN. The form asks for your entity details, country of residence and, where relevant, treaty claims.

Whether US tax should be withheld on payments to you depends on the nature and location of the services and on US rules and the India-US tax treaty. Do not assume the answer either way, and do not let the client guess it for you. Have your CA review the form before you sign it, and if tax is withheld, ask how to claim credit in India using Form 67. Our guide on W-8BEN and W-8BEN-E for Indian providers covers each part of the form.

Filling the EDF for US clients

Your US invoices go on the same monthly EDF as any other exports.

• Field 1.17 (country of final destination): United States, if all invoices that month are US clients; if you have several countries, the country column in Part 2B carries the detail.
• Part 2B country column: "United States" (or "USA", consistently) for each US invoice.
• Currency: USD.
• Field 1.4: Internet for services delivered online.
• Field 1.22: total in rupees, in figures and words, using a rate you apply consistently.

Worked example. Harbour Lane Analytics Pvt Ltd in Pune serves three US clients. In October 2026 it raised:

One EDF, three rows, all "United States", due 30 November 2026. The Illinois insurer pays on net 60, so payment is expected around 9 December. All three should be realised well inside 9 months: by 1, 10 and 24 July 2027 respectively.

Realisation timing with US clients

The 9-month rule (12 months for rupee invoices) usually poses no problem with US clients, but three things cause delays:

1. Vendor onboarding. Large US companies require vendor setup, tax forms and banking verification before paying. Start this on contract signature, not at the first invoice.
2. PO mismatches. An invoice that does not match the PO amount may be rejected silently. Check AP portals if the client uses one.
3. Bundled payments. US AP often pays several invoices in one remittance with a separate remittance advice. Save it; your bank needs it to match.

If an invoice will clearly be paid after 9 months, request an extension from your AD bank before the deadline.

This is general information, not legal or tax advice.

Frequently asked questions

What currency should I invoice US clients in?

USD is standard and is what most US clients expect. Invoicing in rupees is possible where your contract and bank arrangements allow, and rupee invoices have a 12-month realisation period instead of 9.

Do US clients deduct tax from payments to Indian service providers?

It depends on the service, where it is performed and US rules, together with the India-US tax treaty. Do not assume either way: have your CA review your W-8BEN-E and any withholding the client proposes.

What country do I write on the EDF for a US client?

Enter "United States" in the country column of Part 2B for each US invoice. If every invoice that month is for US clients, field 1.17 can also show United States.

Is ACH or wire better for receiving US payments?

ACH is cheaper and familiar to US clients, but it needs a US collection account through a provider, so check how payouts reach India and what remittance document you receive. Wires go straight to your Indian bank but may lose intermediary charges.

Bottom line

Selling services to the US is mostly about clean USD invoices, early vendor onboarding and a remittance document for every payment. Declare monthly, match carefully and watch slow payers. Prepare your next US invoice and EDF with our free EDF form generator.