221g-Remotely working from India

[Prasad]

I need help from experts out here. I was given 221g and have been remotely working and getting paid in US dollars. I work in EVC model and I am an employee of a Desi consulting company with about 60 employees.

Could any one please direct me to a good CPA firm with whom I can file taxes for 2011. From the little information I gathered looks like I need to file exemption from US and file taxes in India.

Responses from folks who worked remotely during 221g processing and filed taxes would help.

Thanks.

[nvijay]

Hi Prasad,

I am in the same boat, could you please let me know since how long are you working? also please let me know if have more details like what is the max period we can work? and next time when you go to interview, do we need to tell US consulate that we worked remotely or not?

[whywhe]

are you paid in dollars or rupees ?

[whywhe]

sorry for my ignorance..you would need to file only in US.you do not need to file in india unless your employer has an office in india and pays you in rupees.that's my understanding since i'm working in the same way.

[Prasad]

sorry for my ignorance..you would need to file only in US.you do not need to file in india unless your employer has an office in india and pays you in rupees.that's my understanding since i'm working in the same way.

I am getting paid in USD, but I read some online articles which says we have to file taxes in India and pay exemption from US taxes and there are some rules to it. Did u contact any CPA?

[Prasad]

Hi Prasad,

I am in the same boat, could you please let me know since how long are you working? also please let me know if have more details like what is the max period we can work? and next time when you go to interview, do we need to tell US consulate that we worked remotely or not?

U don't have to tell the VO unless u choose to if u are swtiching ur employment to a new company.

[mantmo]

I need to do the same. Heard you get good returns. Working remotely from past 1 yr. Why pay taxes to US when we are not using their services for over an year?

I plan to wait till April and if I do not get any help, have no option but to pay the taxes for nothing but uncertainty in life, frustrating night duties and screwed up married life in India!

[whywhe]

I am getting paid in USD, but I read some online articles which says we have to file taxes in India and pay exemption from US taxes and there are some rules to it. Did u contact any CPA?

You will pay taxes in India and can get exemption only if you are paid in Rupees by your employer having office here.Can you share those articles that you have come across.I guess the below link from IRS can give you better picture on how you can determine if you have pay taxes or not ?

http://www.irs.gov/businesses/small/international/index.html

[Prasad]

You will pay taxes in India and can get exemption only if you are paid in Rupees by your employer having office here.Can you share those articles that you have come across.I guess the below link from IRS can give you better picture on how you can determine if you have pay taxes or not ?

http://www.irs.gov/b...onal/index.html

Can u plz share ur contact number. U can get my email ID from my profile ID.

Here is the link I was talking abt and u can google more

http://****************

@mantmo, Please let us how u r proceeding with your taxes. I too was working m from India since May 2011.

[Prasad]

@mantmo, Can u please let us how u r proceeding with your taxes.

[mantmo]

@Prasad

I am planning to do it through Turbotax, however I have asked my friend to find out from his CPA if I can get more returns after being out of US for last one financial year.

If there are too many complexities involved I will go for regular filing as I do not have enough time. I was hoping to get back to US to pay the taxes so delayed it and now I don't have any time left on me. Will keep updated.

[Prasad]

@Prasad

I am planning to do it through Turbotax, however I have asked my friend to find out from his CPA if I can get more returns after being out of US for last one financial year.

If there are too many complexities involved I will go for regular filing as I do not have enough time. I was hoping to get back to US to pay the taxes so delayed it and now I don't have any time left on me. Will keep updated.

Thanks mantmo, I am also filing through regular process rite now.

[INDNewYork]

God! You guys are already lucky working remotely in India and earning in dollars and again trying to save on taxes. Earning dollars & Not missing Indian food, life etc...Hats on!

[mantmo]

God! You guys are already lucky working remotely in India and earning in dollars and again trying to save on taxes. Earning dollars & Not missing Indian food, life etc...Hats on!

Actually so illogical! Working for the same company in US, getting paid in US, paying taxes in US, just not allowed to STEP in the US :)

Regarding luck - Not so easy! Uncertainty in life - Unable to live a planned life.

[nvijay]

Is it really legal to generate US payroll, while a person is in India, and how long a person can work remotely, did anybody did research on tax implication in India?

[man_1975]

@nvijay,

It is legal to generate US payroll while a person is in India untill your receive revocation your petition from USCIS. during the review/NOR of your petition by USCIS you can legaly work on your petionar compnay even if you are not in US.

[mantmo]

@Prasad: My friend had a meeting with CPA yesterday. Unfortunately there is no additional returns for staying out of US over last 1 yr!!

I have anyway asked him to file extension, so I can wait till October to pay the taxes.

[mmohankr]

So, Do you have to pay taxes in India or just in US?

 

I am in a similar situation, but I am stuck in Canada and my HR says I cannot get paid because of tax issue with Canada, as I am located in Canada and not in Omaha.

[JoeF]

@nvijay,

It is legal to generate US payroll while a person is in India untill your receive revocation your petition from USCIS. during the review/NOR of your petition by USCIS you can legaly work on your petionar compnay even if you are not in US.

You can of course be paid in US dollars while abroad.

And you likely have to pay taxes in the country you are staying in.

This stuff is not easy, so both the employer and the employee should consult with a good CPA knowledgeable about cross-country salary issues.

 

What is often done, making it easier for the employer, is to work as independent contractor while abroad. That way, the US-based company just pays invoices, and the person abroad is responsible for paying local taxes.

[mmohankr]

Thanks for the information JoeF. You seem to have more information than I have, so please excuse me for a few more questions. I just don't know where to start... My attorney doesn't seem to know about this and he had mentioned I could work while in Canada remotely for my employer as long as my employer approves it. How and on what basis do I pay taxes in Canada? Is it my employer who has to pay taxes to Canada govt?

Even though I am staying in Canada, I am working for US company and I do not have a Canada SIN number (equivalent to SSN) to be able to pay taxes. How can I convert to an independent contractor from a Full Time position? Any suggestions?