Invoice for USA based company

You are correct in principle:

• If your company receives $100, and then pays $30 each to the photographer and the security personnel, and they issue invoices to your company, then:

  • You will show $100 as revenue.

  • The $60 paid to them is an allowable business expense (assuming proper documentation and TDS compliance).

  • You will pay income tax only on your net income = $40.

However, ensure the following:

• They raise proper invoices for their services.

• You deduct TDS (likely under Section 194J for professional services or Section 194C for contracts).

• You maintain records of agreements/emails/invoices to justify the expenses if needed during assessment.
  
  

Thanks & Regards,
Damini Agarwal
Founder 
Witcorp India Advisors LLP

Your invoice mentions:

• "Export under LUT without payment of IGST"

• Appropriate SAC Code (998599 for production-related services)

• Clear declaration under Rule 96A of CGST Rules

This aligns well with GST compliance for export of services. So yes, your invoice is correct and you do not need to charge GST.

Thanks & Regards,
Damini Agarwal
Founder 
Witcorp India Advisors LLP

- Before raising an invoice to the overseas client, firstly apply for LUT for the F.Y. 2025-26. The format of invoice shared by you is incomplete. The missing details are as below:

- Name of supplier of services

- Address of supplier of services

- LUT ARN

- Place of Supply

1) Assuming you are fulfilling all the conditions for export of services without payment of GST then there is no need to pay GST on such export of services

2) 100$ would be your turnover/gross receipts and 40$ would be your net profit. Income tax is payable on the net profit. Pay Advance tax timely to avoid outlfow of interest. Ensure deduction and payment of TDS if applicable

3) You would be liable to pay GST@18% on 60$ as import of services

4) You can also claim refund of Input tax credit on business expenses incurred for export of services

5) Retain documents such as LUT, FIRC, Bank statements, copy of invoices, copy of agreement etc.

6) Description of services should be as per the agreement if any

7) SAC code should be 998311 "Management consulting and Management services including financial, strategic, human resources, marketing, operations and supply chain management"

If you are charging actual cost of the crew services incurred by you on behalf of the foreign client then you can raise an invoice showing separately the cost of the crew services procured and the amount of services provided by you

If there is a markup on the crew services then there is no need for breakup. 

For detailed discussion you may opt for phone consultation

Service Description (to include on invoice):

We are providing Artist Management and On-Site Crew Coordination Services. This includes the arrangement and supervision of essential support personnel such as photographers and security staff required for the smooth execution of the event. As the central point of contact, our company is responsible for coordinating all crew-related logistics and ensuring quality service delivery. The total amount invoiced represents a bundled fee for these end-to-end management and facilitation services, provided under a single contract. This service qualifies as an export of service under LUT without payment of IGST, in accordance with Rule 96A of the CGST Rules. SAC Code: 998311 – Management consulting and management services.

Additional Notes:

• If your agreement with the US client requires transparency, you may optionally provide a breakdown (e.g., $30 for photography, $30 for security, $40 as your management fee). Otherwise, a consolidated fee is perfectly valid and compliant.

• Ensure all documentation (LUT, FIRC, crew invoices, and TDS filings) is maintained for compliance.

Let me know if you’d like this.