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Saturday, June 25, 2011

Commerce Minister Anand Sharma Negotiates SS Tax Exemption for Indian IT Pros

Why pay for benefits you have never received?

This is the tone behind India Commerce and Industry Minister Anand Sharma's speech at the US-India Trade Policy Forum on Thursday in Washington.

Sharma has laid his Bilateral Totalisation Agreement (BTA) proposal to exempt Indian IT professionals from Social Security taxes to alleviate the cost of visa fee increase last year. According to reports, he convened with US Chief of Staff William Daley to clarify US' intentions on pursuing the trade policy.

Reports said the India minister commented that the IT specialists are working in the US for few months. The India government pays more than $1 billion each year for their US Social Security taxes, but the workers does not receive any benefits. US have also required India to pay additional visa fees since last year to fund US-Mexico border security.

Sharma has negotiated to exempt the Indian professionals from SS taxes and include such condition on the BTA. He also campaigned for less stringent immigration policies to reduce discrimination tensions among US-Indian workers, reports said.

Furthermore, Sharma affirmed that once the BTA is signed, the $60 billion profits from IT offshoring businesses would continue to increase.

The $60 billion profits looks attractive as well as beneficial for US businessmen. The BTA proposal to the Obama administration may go well unless the US legislators push through with the tight immigration policies.

Even if US Officials reject India’s conditions, the IT industry between the two countries would still look brighter in the years to come.

For more information on Social Security taxes, you may consult with a lawyer in Los Angeles. Dial our toll free number at 1-866-772-2889, or email us at in order for us to assess your situation.