I am a citizen of India, never travelled or worked in the US ever. I have registered a Pvt Ltd in India for doing business with a US-based client. I registered my company in Dec 2015.
I read up and the advice here was:
Part III (Claim for Treaty Benefits): You do not need to claim U.S. treaty benefits to obtain a reduced rate or exemption from U.S. withholding on interest on a bank deposit account or a time deposit.
So left the PART III empty. Now, the this company comes back and needs PART III filled up correctly.
I think 14a, and 14b apply to us. But how do I will 15 ? What Article of the treaty provides me with 0% withholding so that I don't fall under DTTA (double taxation).
How to Fill Out BEN-E for Foreign-Performed Services
When payments are being made for foreign-performed services, the payments are not “withholdable payments” and the foreign entity does not need to complete Line 5 of the BEN-E. Further, the foreign entity does not need to complete Parts 2 through 28 or Part 30 of the form. Instead, in this circumstance the foreign entity must only complete the following:
Part I, Lines 1-4, 6 & 7 (perhaps also Line 9b), and
Part XXIX (an authorized individual signs and dates, and checks the certification box).
By signing the BEN-E, the authorized individual of the entity is certifying that (i) the entity is the beneficial owner of the income (ii) the entity is not a U.S. person, and (iii) the income is not effectively connected income (“ECI”).