Two ways to sell
| Indian exporter (Global Selling) | US company | |
|---|---|---|
| Seller of record | Your Indian business | Your US LLC or C-Corp |
| Who imports into the US | You arrange an importer of record | The US company imports its own stock |
| Main India-side paperwork | IEC, GST registration, LUT, export documentation | Export to your own US company, plus ODI reporting for the US entity |
| US tax on profits | Depends on whether you have a US permanent establishment | US company pays US corporate tax (C-Corp) or files as a foreign-owned LLC |
Selling as an Indian exporter
- Registrations: an Importer Exporter Code (IEC) from DGFT, GST registration, an AD code with your bank, and a Letter of Undertaking (LUT) so exports are zero-rated without paying IGST upfront.
- US customs: goods entering the US need an importer of record who handles duties and clearance.
- Payment: give Amazon a W-8BEN-E for the Indian entity — see the W-8BEN-E guide.
- Export proceeds must be realised in India within the period RBI prescribes and matched to your shipping records.
Selling through a US company
- A US LLC or C-Corp buys stock from you (or your Indian company) and sells it on Amazon.com as a US seller — often preferred by larger brands, and simpler for US customs and US-only programmes.
- The Indian side becomes an export to a related party: the price must be at arm’s length — see transfer pricing.
- The US entity brings its own filings: Form 1120 or the foreign-owned LLC return with Form 5472, Delaware or state fees, and ODI reporting in India.
- Choose the entity type with care — C-Corp vs LLC — especially if the LLC’s owners live in India (why).
US sales tax
Every US state with a sales tax now has a marketplace facilitator law, so Amazon calculates, collects and remits sales tax on sales it facilitates. You generally don’t collect sales tax on those Amazon orders yourself — but sales through your own website are a separate matter. See US sales tax.
FBA and US income tax
Storing inventory in Amazon warehouses is where the US income-tax question arises for Indian exporters. Under the India–US treaty, a foreign business is taxed on business profits in the US only if it has a permanent establishment there. The treaty excludes facilities used solely for storage, display or occasional delivery of goods — and whether regular fulfilment from US warehouses stays within that exclusion depends on the facts. Sellers with significant FBA volumes should get this assessed rather than assume “no US tax”.
A US company avoids the question — it simply pays US tax on the US profit — but then the transfer price between India and the US decides how much profit is taxed where.
Getting paid
- Indian exporter: receive Amazon disbursements into your Indian bank account through channels that generate proper inward-remittance evidence, and reconcile them against shipping bills.
- US company: the US entity’s bank receives the payouts; money reaches India as payment for goods supplied, or as dividends. See US bank account from India.
How to decide
- Testing the market or small volumes: sell as an Indian exporter.
- Large FBA inventory, US team or US retail channels: a US company usually makes more sense.
- Brand building: protect the brand in the US first — see US trademark.
Frequently asked questions
Can an Indian business sell on Amazon.com without a US company?
Do I need to collect US sales tax on Amazon sales?
Does FBA inventory in the US create US income tax for an Indian seller?
Should I use a US LLC or C-Corp for Amazon US?
Please note: this guide is general information based on the rules as they stood on the review date above. Regulations and RBI/CBDT procedures change often — please get advice on your specific facts before acting.