A US brand is sponsoring my YouTube video: what applies?
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Short answer
A sponsorship signed directly with a brand located in the US, paid in foreign currency, can be an export of services because the place of supply is the recipient's location under section 13(2) of the IGST Act.1 DGFT maps sponsorship and brand promotion services to purpose code P1099, every export needs an Export Declaration Form, and payment must arrive within nine months of the invoice.345 The fee is taxable in India as business income, and a W-8BEN usually prevents US withholding on work done in India.67
A Pune tech reviewer is paid $3,000 by a California gadget maker to feature its earbuds in a video. The money is separate from AdSense revenue and is a direct contract between creator and brand. That makes it a services deal, with the usual export questions.1
Is a sponsorship from a US brand an export of services?
It can be. Section 2(6) of the IGST Act requires you in India, the brand outside India, the place of supply outside India, payment in convertible foreign exchange, and no branch relationship.2 Promotion services are not in any special category, so section 13(2) makes the place of supply the brand's location.1 With all five conditions met, the deal is zero-rated. If you are below ₹20 lakh of aggregate turnover you need not register; if registered, invoice under a Letter of Undertaking.8
Watch who signs. Deals arranged through an Indian talent agency or a brand's Indian subsidiary often make the Indian entity your client, which turns the deal domestic.2
What does the RBI require?
From 1 October 2026, file an Export Declaration Form (EDF) with your bank within 30 days from the end of the invoice month, or on or before the payment date.4 Realise the fee within nine months of the invoice date.5 DGFT's mapping puts sponsorship and brand promotion services (SAC 998397) under P1099, "Other services not included elsewhere".3 If your role is closer to producing an advert, ask your bank whether P1007 fits better.
Will the US brand withhold US tax?
Usually not, if you make the video in India. IRS Publication 515 says the place where services are performed determines the source of personal service income.6 Give the brand Form W-8BEN; see Form W-8BEN for Indian freelancers. Sponsorships that include filming in the US are a different case.
How is the sponsorship taxed in India?
It is business or professional income, added to your AdSense and other earnings. Content creation is not one of the specified professions in section 62(4) of the Income-tax Act, 2025, so the 50% presumptive scheme does not clearly apply.7 Because the label of the deal, the signing entity and any product received change the answer, confirm your setup with a chartered accountant. AdSense itself is covered in YouTube AdSense income: GST and tax.
How did we verify this?
We checked this page against the sources below on 28 October 2026. Read our methodology or report an error.
- [1]CBIC: IGST Act, 2017, section 13 (place of supply where supplier or recipient is outside India)
- [2]CBIC: IGST Act, 2017, section 2 (definitions), clause (6)
- [3]DGFT: Purpose Code and SAC Code Mapping, Version 1.0, 10 November 2023
- [4]RBI: Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026, Notification No. FEMA 23(R)/2026-RB, amended up to 22 September 2026 (regulations 3 and 5)
- [5]RBI: Notification No. FEMA 23(R)/(1)/2026-RB dated 22 September 2026 (amendment to regulation 5)
- [6]IRS Publication 515, Withholding of Tax on Nonresident Aliens and Foreign Entities (checked 28 October 2026)
- [7]Income Tax Department: Income-tax Act, 2025, section 62 (specified profession, sub-section (4))
- [8]Notification No. 10/2017-Integrated Tax (exemption from registration for inter-State suppliers of taxable services), GSTZen reproduction
Frequently asked questions
Is it still an export if the brand's Indian subsidiary signs the deal?+
No. Section 2(6) of the IGST Act needs the recipient to be located outside India. A deal with an Indian entity is a domestic supply.2
What if the brand sends me a free product as well as cash?+
The product can be part of what you are paid for the promotion. How to value it for GST and income tax depends on the deal; ask a chartered accountant.
Which purpose code should my bank use?+
DGFT maps sponsorship services and brand promotion services (SAC 998397) to P1099, "Other services not included elsewhere".3
Do I need GST registration for one sponsorship?+
Only if your aggregate turnover, including AdSense and brand deals, exceeds ₹20 lakh in a financial year (₹10 lakh in special category States).8
This page is general information for Indian service exporters, not tax or legal advice. Rules change and outcomes depend on your facts, so confirm with a chartered accountant before acting.
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