India wants us to exempt professional from social security taxes

India wants US to exempt professional from social security taxeS :=. . . . . Negotiations regarding the Bilateral Totalisation Agreement (BTA) between India and USA have been going on with India asking the US to exempt professionals from payment of security taxes, as a counterweight to balance the visa fee hike last year. As part of the agreement, India would reciprocate by exempting professionals from the US from paying any social security taxes. The move, when the agreement is signed, will come as a relief to lakhs of Indians working in the US and paying social security taxes but not getting any benefits for it, along with the Indian IT industry (worth USD 60 billion) that obtains 60 per cent of its business from the US. Last year, America had imposed 2 per cent tax on US government procurement from foreign companies and also extended the present visa fee on certain categories by one more year from 2014 to 2015. The issue came up at the India-USIBC meeting at Washington between Commerce and Industry Minister Anand Sharma and William Daley, Chief of Staff in the US administration. The Indian Minister argued that the exemption was necessary since the US government had imposed 2 percent taxes on government procurement from foreign companies and also hiked the visa fee in H1B and L1 categories. . . . . . . . . . .. , . . . . . “There is a requirement for investment to bring about the Second Green Revolution in India and to develop the agro-processing and food processing sectors", Sharma said.The meeting also focused on bringing in more investment from the US, especially in fields like agriculture, infrastructure and agro-processing and more technological collaboration between the two nations. With India being one of the fastest growing economies in the world, Sharma identified the benefits of a strategic partnership with the United States and the tremendous opportunities available to invest in various sectors available in India, be it pharmaceuticals, manufacturing, energy or research and development. . . .