Withholding Tax and DTAA guidlines

Hi, I would appreciate if anybody can clarifies my query

1. Is withholding tax is applicable if any indian company remitting the payment to any US Citizen or US company for their technical and marketing services provided by them in USA only for and on behalf of Indian company? And they (US service provider) do not have any offices in India.

If yes, then how the US citizen or US company can take the tax benefit that witheld in India if they do not have taxable earnings in USA or in India.

The answer can differ for US citizen and US Company. US Citizen is more likely to have no tax deduction from India provided certain conditions are satisfied. Simillarly the US Company can also escape TDS deduction if all facts of the case are analysed.

If the income is accruing in India and TDS is deducted then the US Company/citizen can adjust the same against its US tax liabillities.

2. If an indian company remits to money to their 100% WOS in USA for the services (Technical and Marketing Support) provided by them for and on behalf of Indian company. is withholding tax will be applicable? If yes, then how to US company can avail the tax benefit in US.

The case needs to be alaysed but there are favorable chances that the TDS may need not be deducted.

Please let me which option is good for the company.

Regards,

Amit