India will press with the US during President Barack Obama's visit here next week for a social security pact aimed at providing relief from double taxation to over one lakh [100,000] Indians working there who pay nearly $ one billion annually as social security tax. ...If the pact comes through, then Indian professionals working in the US on short term contract up to five years will not require to make any social security contribution provided they continue to make the payment in India.
The US has not been forthcoming in signing such a pact with India as US gets over $ one billion as social security tax from the Indians working. However, top Indian IT companies including Infosys and TCS have been pushing for such a pact with the US.
"Compared to Indians working in the US, the number of American professionals working here is very less. So US feels the pact will only benefit India but we have argued that as nuclear commerce with US expands, lot many US professionals will require to work here and they will also be benefited from the pact," the official said. ...
"There are indications that formal negotiations will begin following Obama's visit," said the official. Obama will be in New Delhi on November 7 and 8 during which he will meet Prime Minister Manmohan Singh and other leaders.
Nov 1, 2010
India To Press For Social Security Treaty
From the Hindustan Times:
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2 comments:
"Indian professionals working in the US on short term contract up to five years will not require to make any social security contribution"
Bad idea.
Yep, bad idea. There is not enough employment for US professionals in India to make a totalization agreement beneficial to both parties. A#1 is prezactly keerect. Bad idea. Nancy Ortiz
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