Outsourcing web development to India from United States

IST is 10h30m ahead of Eastern time and 13h30m ahead of Pacific time in winter. The difference is 1 hour less during daylight saving time, from the second Sunday in March to the first Sunday in November, except in Arizona, which keeps 12h30m. IST is 14h30m ahead of Alaska in winter and 13h30m in summer; it is 15h30m ahead of Hawaii all year. Agree on call times and check them when daylight saving time changes.

Generally, there are no geographic restrictions on transferring personal data out of the US, apart from rules on storing some government records and information.

The US Justice Department's Data Security Program prohibits or restricts certain transactions that could give countries of concern or covered persons linked to them access to US government-related data or Americans' bulk sensitive personal data. India is not listed among the countries of concern.

From 13 May 2027, India's DPDP Act provisions will include an exemption for certain processing in India of personal data of individuals outside India under a contract with a person outside India. Most Data Fiduciary obligations, Chapter III data principal rights and the section 16 transfer rule will not apply in that case, but sections 8(1) and 8(5), covering responsibility for compliance and reasonable security safeguards, still apply.

IRS Publication 515 says a payment is subject to chapter 3 withholding if it is US-source FDAP income. For personal services, the place where the services are performed determines the source, regardless of where the contract was made, the place of payment or the payer's residence.

Under India's Integrated Goods and Services Tax (IGST) Act, 2017, an export of services is a zero-rated supply. A service qualifies as an export only if the statutory conditions are met, including the supplier's and recipient's locations, the place of supply, the permitted form of payment and the relationship between the parties.

An Indian invoice for export of services must carry the applicable export endorsement. It must also give the recipient's name and address, the address of delivery and the country of destination.

Agree payment timing with the supplier. India's Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026 require an Indian exporter to realise and repatriate the full value of exported services within nine months from the invoice date, or twelve months if the export is invoiced or settled in Indian rupees. The exporter's Authorised Dealer bank may permit an extension on request.

If you are a covered entity sharing protected health information with a business associate, the HIPAA Privacy Rule requires satisfactory assurance that the information will be appropriately safeguarded. That assurance must be documented in a written contract or other written agreement.

If you are considering arbitration, check the applicable terms. India applies the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards only to awards made in another contracting State and to differences considered commercial under its national law.

Start with the checks below. Forty-five US states and the District of Columbia levy a statewide sales tax; Alaska, Delaware, Montana, New Hampshire and Oregon have no statewide sales tax.

• Agree call times around the India–US time difference.
• Identify any government records or sensitive personal data you plan to share.
• Check whether a written agreement is required for protected health information.
• Check the source of personal-services income when considering US withholding.
• Ask the supplier for an export invoice with the required details.
• Agree payment timing with the supplier.
• Review arbitration terms if you plan to include them.