IndiGo & taxes:
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Intruderone
I think the company is only following the law of the land process of TDS (Tax deducted at source). If I am not mistaken it is the same in the USA where your employer makes all statutory deductions from your pay slip and gives you a summary every week/month and then gives you a form to file end of the year with your taxes. Your applicable tax is based on how you structure your pay with them in consultation with a tax consultant to best suit you.
Much like the USA standard deductions etc are permitted and a very similar tax code. If one is working in a country it is by choice and after full disclosure and it is therefore their duty to obey the laws of the land thereafter which includes paying tax as stipulated.
Considering you are USA based what would your tax and statutory deductions be on a monthly pay of of $13,000 in a similar position?
I think the company is only following the law of the land process of TDS (Tax deducted at source). If I am not mistaken it is the same in the USA where your employer makes all statutory deductions from your pay slip and gives you a summary every week/month and then gives you a form to file end of the year with your taxes. Your applicable tax is based on how you structure your pay with them in consultation with a tax consultant to best suit you.
Much like the USA standard deductions etc are permitted and a very similar tax code. If one is working in a country it is by choice and after full disclosure and it is therefore their duty to obey the laws of the land thereafter which includes paying tax as stipulated.
Considering you are USA based what would your tax and statutory deductions be on a monthly pay of of $13,000 in a similar position?
Intruder
Wannabe flyer is right . As per GOI tax laws the employer has to deduct tax at source and deposit it with the Govt. But it wont be a 4000 usd loss for you. The Indian companies cleverly have what are called voucher payments like conveyance/layover/meal allowances etc which are tax free which should see you net about 11000 usd . Southern Indian bases like Vomm or Vobg are good . Average flying 75 to 80 hrs . Not a bad choice if you are unemployed.
Wannabe flyer is right . As per GOI tax laws the employer has to deduct tax at source and deposit it with the Govt. But it wont be a 4000 usd loss for you. The Indian companies cleverly have what are called voucher payments like conveyance/layover/meal allowances etc which are tax free which should see you net about 11000 usd . Southern Indian bases like Vomm or Vobg are good . Average flying 75 to 80 hrs . Not a bad choice if you are unemployed.
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To Wannabe Flyer::
Yes I do understand how tax codes work. In the USA you would pay almost that much tax on that type of salary,but....... and this is the big difference.
In the US I could write off all my expenses, training, travel basically anything that pertains to the job.....so at the end of the year the IRS would give me allot of that back, at least half. As a foreign pilot working in a foreign county I don't think I could file any kind of deductions with them. They are basically just going to keep the entire amount.
As in the US if you are not a citizen and you are here on a contract the IRS is just going to take your money, you cannot file unless you are a citizen, I can't believe its any different in India. The IRS is not going to give me money back on taxes I paid somewhere else.
If this is incorrect I would like to be wrong:
Yes I do understand how tax codes work. In the USA you would pay almost that much tax on that type of salary,but....... and this is the big difference.
In the US I could write off all my expenses, training, travel basically anything that pertains to the job.....so at the end of the year the IRS would give me allot of that back, at least half. As a foreign pilot working in a foreign county I don't think I could file any kind of deductions with them. They are basically just going to keep the entire amount.
As in the US if you are not a citizen and you are here on a contract the IRS is just going to take your money, you cannot file unless you are a citizen, I can't believe its any different in India. The IRS is not going to give me money back on taxes I paid somewhere else.
If this is incorrect I would like to be wrong:
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http://www.irs.gov/pub/irs-trty/india.pdf
also
Double Taxation Agreements with United States of America | Agreements | Law Library | AdvocateKhoj
Apologies if this isn't what you meant
also
Double Taxation Agreements with United States of America | Agreements | Law Library | AdvocateKhoj
Apologies if this isn't what you meant
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Thanks.....yes I understand the US will not tax you twice......but is getting any of that 4000 plus dollars in tax you've already paid back possible.I can't see India returning any of that to a foreign worker,maybe they do.
As hifly787 mention somehow the way the company does it you end up with around $11000,if that's the case then that would be ok.The terms I looked over though mention nothing about that.
The friend that sent me the terms has a interview in a few weeks and I'm sure he is going to get a answer on this topic, he thought the taxes did not seem realistic.
I thought a pilot working there would chime in but maybe not.
As hifly787 mention somehow the way the company does it you end up with around $11000,if that's the case then that would be ok.The terms I looked over though mention nothing about that.
The friend that sent me the terms has a interview in a few weeks and I'm sure he is going to get a answer on this topic, he thought the taxes did not seem realistic.
I thought a pilot working there would chime in but maybe not.
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Intruder one
If you are a foreign employee on a work visa (H1 or L1) in the USA you have to pay all the taxes as a citizen and can avail of all the standard deductions as a citizen. You get back a portion of your taxes and not all your taxes in the USA based on your deductions you make and file at the end of the year. No different and often times get no benefit for your Social security and medicare benefit if you do not convert to a citizen and therefore lose all that.
If you are a foreigner in India on a work visa you have to pay all the taxes of an Indian citizen and you can avail of all the deductions and options available to an Indian Citizen. Difference being that the company structures it for you into your payroll so that you don't have to do the running around end of the year (as described by Hi Flyer787) and therefore instead of getting a refund at the end of the year from the Indian Govt you get a smaller deduction on your pay check every month and therefore more cash in hand. $13000 as per HIflyer will bring you about $11,000 in hand post taxes.... I am assuming the same in the USA or less?
I am sure based on the Double taxation treaty the US will therefore not allow you to claim deductions twice. However if in addition to those expenses you are claiming in India you have more expenses stateside and are eligible for more rebates I am sure you can claim them. The US embassy here is very helpful with guidance on this matter.
AS in my first post I therefore recommend a tax consultant to structure this to ensure you get the best deal.
Many ex pat aviators and workers in India and if you browse the forum I have yet to come across a topic where they have an issue on taxation.....other issues abound but then that is a personal opinion.
If you are a foreign employee on a work visa (H1 or L1) in the USA you have to pay all the taxes as a citizen and can avail of all the standard deductions as a citizen. You get back a portion of your taxes and not all your taxes in the USA based on your deductions you make and file at the end of the year. No different and often times get no benefit for your Social security and medicare benefit if you do not convert to a citizen and therefore lose all that.
If you are a foreigner in India on a work visa you have to pay all the taxes of an Indian citizen and you can avail of all the deductions and options available to an Indian Citizen. Difference being that the company structures it for you into your payroll so that you don't have to do the running around end of the year (as described by Hi Flyer787) and therefore instead of getting a refund at the end of the year from the Indian Govt you get a smaller deduction on your pay check every month and therefore more cash in hand. $13000 as per HIflyer will bring you about $11,000 in hand post taxes.... I am assuming the same in the USA or less?
I am sure based on the Double taxation treaty the US will therefore not allow you to claim deductions twice. However if in addition to those expenses you are claiming in India you have more expenses stateside and are eligible for more rebates I am sure you can claim them. The US embassy here is very helpful with guidance on this matter.
AS in my first post I therefore recommend a tax consultant to structure this to ensure you get the best deal.
Many ex pat aviators and workers in India and if you browse the forum I have yet to come across a topic where they have an issue on taxation.....other issues abound but then that is a personal opinion.
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Ok well it appears this topic has been covered pretty well.....all the info was very helpful and I'm sure it works about the way its been explained or I doubt they would be able to keep any pilots. Those terms from Sigma need to be revised, there is no explanation like has been covered here.
On another topic I understand they have about 9 pilot bases.hifly787 indicated the southern bases were better. Any recommendations....which ones fly the least, quality of life ,things to do etc....
On another topic I understand they have about 9 pilot bases.hifly787 indicated the southern bases were better. Any recommendations....which ones fly the least, quality of life ,things to do etc....
