During the winter parliament session, Indian Commerce Minister Nirmala Sitharaman informed that the Indian technology companies paid $22.5 billion as taxes in the US. Today, Sitharaman in a written reply told, “The Indian tech industry invested more than $2 billion in USA during FY 2011-13, has paid $22.5 billion in taxes during FY 2011-15 and supported 4,11,000 jobs in FY2015 directly or indirectly.”
The report from where the Commerce minister took the data from, is a report by NASSCOM titled ‘Contributions of India’s Tech Industry to the US Economy’.
As covered in recent news, the US government put a hike on the Visa fee which is likely to affect the Indian IT industry’s impact in the west. This might hurt India’s impact in the US economy. To survive in the US, Indian companies would have to pay a fee of $8,000 and $10,000 per H-1B visa from next financial year. This hike is not only the result of Consolidated Appropriations Act 2016 (Act signed by President Obama) but also some additional taxes imposed by the Congress over the past decade.
H-1B visa application fee is $325, as per the act signed by Obama – A company having more than 50 employees and 50 percent of them working on H1B or L1 Visa status would have to pay an additional sum of $4,000/H1B visa and $4,500 for L1 visas. Not only this, but the Indian companies also pay $1,225 as premium processing fee and $1,000-$2,000 as attorney fee for H-1B visa. Also, the people working for companies in the US pay Social Security and Medicare as a part of their role.
On papers Indians who pay the social security fee are eligible to receive the benefits even if they leave US provided they have paid it for at least 10 years. On the other hand, the H1-B visa does not allow the time to exceed beyond 6 years, so the entire amount becomes non-partible.Category Governance News