Working in India Paying tax to US

[deepak1979]

I am a Nepali citizen currently working in India. I came to India when my 6 Years H1B (US Work visa) was exhausted last year. While working in India I was still getting paid in USD and paying tax to US government.
All of sudden, I got a call from local HR and he told me that they cannot pay me in USD and my US payroll will be stopped immediately.
My question is;
1. Can they ask me to return back all the $$ that they paid me while I was in India? (It is even legal to ask?)
2. I came to India because they assigned me a project in India. They never gave me any deputation letter while returning back from USA to India. All I have is an offer letter that was given to me when I joined this company in US. Company Provided me airline ticket while coming to India.
3. Do I need to pay Tax to Indian government as my salary directly gets deposited to my US bank account and I don’t have bank account in India?

[raghvi]

Working in India Paying tax to US

Technically one should pay income tax to the country where one is working. So in effect you should have been paying taxes to Indian government while you moved to India. Also, you would have to read terms and conditions of your offer letter and talk to your HR about these. Once the company stops paying you US salary, ask them how they intend to pay you the Indian salary, most probably in an Indian account and you should pay taxes to Indian govt on it. There are several issues at play here, more related to International taxation and HR policies rather then immigration. This is my opinion, do consult experts too.

[deepak1979]

Thank you.
Can they ask me to return back salary that was paid in USD while working in India ?

I came to India because they assigned me a project in India. They never gave me any deputation letter while returning back from USA to India. All I have is an offer letter that was given to me when I joined this company in US. As per the offer letter i should be getting salary in USD.

[shervin143]

Can they ask me to return back salary that was paid in USD while working in India ?
>>> No.

I came to India because they assigned me a project in India. They never gave me any deputation letter while returning back from USA to India. All I have is an offer letter that was given to me when I joined this company in US. As per the offer letter i should be getting salary in USD.
>>> This is a civil matter between you and your company. You need not have to pay them back the salary that was already paid to you for your service. But if they do not want you to be in their U.S payroll any longer, then there is nothing much you can do about it as you no longer maintain the H1B status.

[deepak1979]

I thought this case was over but today i got an email from my previous company. Do you have anything suggestions ?

"Not so long ago you were part of the XYZ family and you chose to pursue opportunities outside. Hope you are doing well in your new employment / venture. Our records indicate that your last working day with XYZ Limited was 4/27/2012 (MM/DD/YYYY).
Your contributions and support during your employment with XYZ highly appreciated. Following a review of our records, there are some open matters pertaining to your employment with XYZ as regards your final settlement. As per our audit on the Remuneration/Payments processed, we found that the below given amount paid have not been recovered from your salary completely and are still pending as recoverable due in your account. The net amount re-payable by you in USD/CAD: 40096.95Recoverable amount is towards: Excess Salary We request you to go through the details given and if you have already repaid this amount, please provide us the details of payment to update the same at our end. If you are in agreement with the above given details please revert back to us we will share you with the mode of payment details. For any further clarification, request you to revert to us at [email protected]. We request you to reply back soon and we look forward to hear from you soon. We thank you for your cooperation and deeply regret any inconvenience caused to you in this regard. Thanks and Regards
"