India Citizen working in India on US Payroll?

[globalcitizen]

Hi Everyone.
I work for a large US multinational Engineering & Service Firm (50K+ employees worldwide) on H1B visa with a PERM priority date of Oct 2012. As I am growing professionally, I have been tasked with leading a regional team out of India for EMEA (Europe/MiddleEast/Asia). While my H1B visa is currently valid, will my PERM application need to be withdrawn? Also, my company's officials tell me that I cannot be on US payroll while working in India since I am a citizen of India. Can someone please confirm this and/or suggest a solution to retain the pay package as on US payroll?

Some details:
- India Citizen to work in India on US payroll
- Currently in US on H1B visa
- EB2 priority date Oct 2012
- 2 year assignment to work from India (flexible on the assignment term - even less than 1 year to make things work and repeat)
- Need to retain US payroll (or some international Payroll) to keep the same pay package
- Willing to work with alternative solutions to spend less than 100% time in India as long as I can stay compliant with norms.

All suggestions are welcome! Thank you so much!

[raghvi]

Hi Everyone.
I work for a large US multinational Engineering & Service Firm (50K+ employees worldwide) on H1B visa with a PERM priority date of Oct 2012. As I am growing professionally, I have been tasked with leading a regional team out of India for EMEA (Europe/MiddleEast/Asia). While my H1B visa is currently valid, will my PERM application need to be withdrawn? Also, my company's officials tell me that I cannot be on US payroll while working in India since I am a citizen of India. Can someone please confirm this and/or suggest a solution to retain the pay package as on US payroll?

Some details:
- India Citizen to work in India on US payroll
- Currently in US on H1B visa
- EB2 priority date Oct 2012
- 2 year assignment to work from India (flexible on the assignment term - even less than 1 year to make things work and repeat)
- Need to retain US payroll (or some international Payroll) to keep the same pay package
- Willing to work with alternative solutions to spend less than 100% time in India as long as I can stay compliant with norms.

All suggestions are welcome! Thank you so much!

Is it EB2/EB3? Your PERM need not be withdrawn.

I dont see any issue with this arrangement except the part that the company, for obvious reasons, may not be willing to pay you US salary in India. Even if they not willing to put you on US payroll, there is nothing stopping them from giving you equivalent pay in Indian Rupee terms, provided they are willing to do so.

Further, from a taxation point of view, I believe you would be taxed in India. So even if you get paid in US/India, you would come in the appropriate tax bracket in India and should file taxes in India.


This is my opinion not legal advice.

[globalcitizen]

Thank you so much for the reply, Raghvi!
It is an EB2 PERM, and I thought the same thing - about not needing to withdraw it. Also, due to the double tax avoidance treaty between US & India, I will need to pay taxes in only one of the countries (while getting credit in the other filing).

However, HR is adamant that if I am on an India Payroll, the pay needs to be commensurate with the local structure (and not a US equivalent). I am wondering if there is a legal way around it. Multiple Short Term assignments maybe?

Is it EB2/EB3? Your PERM need not be withdrawn.

I dont see any issue with this arrangement except the part that the company, for obvious reasons, may not be willing to pay you US salary in India. Even if they not willing to put you on US payroll, there is nothing stopping them from giving you equivalent pay in Indian Rupee terms, provided they are willing to do so.

Further, from a taxation point of view, I believe you would be taxed in India. So even if you get paid in US/India, you would come in the appropriate tax bracket in India and should file taxes in India.


This is my opinion not legal advice.

[globalcitizen]

One option we are exploring is if an Indian citizen is allowed to do temporary assignments in India on a non-India payroll. Anybody with experience on that front?

[raghvi]

One option we are exploring is if an Indian citizen is allowed to do temporary assignments in India on a non-India payroll. Anybody with experience on that front?

What one does and how one gets paid (legally) while outside US is not exactly a US immigration issue and needs to be addressed between you and your HR.

If you have a valid multiple entry work visa of US you can pretty much enter and exit and work in US at will as long as you conform to the local laws while in US.

This is my opinion not legal advice.

[globalcitizen]

Thanks again for the reply, Raghvi!
However, the question (and the circumstance) has changed slightly. Now we are only trying to concentrate on finding if it is valid to work in India on a non-India payroll. Not necessarily US payroll, but any non-India Payroll - so it has nothing to do with retaining a US visa anymore.

Would love to find some experience on this front.

What one does and how one gets paid (legally) while outside US is not exactly a US immigration issue and needs to be addressed between you and your HR.

If you have a valid multiple entry work visa of US you can pretty much enter and exit and work in US at will as long as you conform to the local laws while in US.

This is my opinion not legal advice.

[raghvi]

Thanks again for the reply, Raghvi!
However, the question (and the circumstance) has changed slightly. Now we are only trying to concentrate on finding if it is valid to work in India on a non-India payroll. Not necessarily US payroll, but any non-India Payroll - so it has nothing to do with retaining a US visa anymore.

Would love to find some experience on this front.

You still being an Indian citizen , I dont think you need any special permission to work in India. As for taxation I believe if you work out of India for more than 180 Days in a Financial Year you would have to file taxes in India and would need help of a Indian tax expert to determine how to report your non India income , if any.

This is my opinion not legal advice.