Originally Posted by win_or_win
I need your help on this. My cousin is running this small IT company in india and he mentioned that when US client sends their money to India via Pay Pal or some secure money transfer , they are charging them 4 % of transfer amount.
He ask me that what could be the best way to avoid this fees , some of the option that we thought about,
1) If they (cousin's company) open an bank account in USA and utilize this to transfer the money to indian bank account - Would they still need to pay US tax as money is being deposited into the US account?
2) If I utlize my bank account - I think in this scenarion I have to pay the US tax for whatever money the client is depositing into my account in order to make this legal transfer
3)If US client utilize remit2india, ICICI to transfer money which I highly doubt
I appriciate your responce on this.
Ask him to double check if his clients are using credit cards to do the transfers. Using a bank account has 0 transfer fee for domestic transfers. Not sure if the same applies to international transfers but good to double check.
Edit: Sorry, sanjudba already made a reply similar to mine.