Latest Expert Exchange Queries

GST Demo Service software link: https://ims.go2customer.com
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
 
 
 
 
Popular Search: articles on VAT and GST in India :: cpt :: TDS :: Central Excise rule to resale the machines to a new company :: ACCOUNTING STANDARDS :: due date for vat payment :: list of goods taxed at 4% :: VAT RATES :: ACCOUNTING STANDARD :: TAX RATES - GOODS TAXABLE @ 4% :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: VAT Audit :: ARTICLES ON INPUT TAX CREDIT IN VAT :: form 3cd :: empanelment
 
 
News Headlines »
 Have you missed the due date of filing your Tax Returns?
 What you should know about income tax refunds
 Income tax scrutiny to remain limited despite surge in returns filed
 Regarding Filing of online return for first quarter of 2017-18 extension upto 01-09-2017
 Deadline to file returns extended to 28 August for biz with transitional
 GST input tax credit form
  How to rectify income tax returns
 Govt extends tax exemption for industry in North East, hilly states
 Should you file revised Income Tax returns; find out here
 Tax Deducted at Source (TDS) in Goods & Services Tax (GST)
 10 companies that blamed GST for soft June quarter

To get less taxing for Indians
October, 01st 2009

The some-pain-no-gain era of double payments by Indian workers on temporary assignments abroad will no longer happen in Germany at least. 

They will now not be required to pay social security taxes there as the India-Germany Social Security Agreement (SSA) signed last year comes into effect on Thursday. This is the second such pact after the India-Belgium SSA.

A social security agreement, or totalisation agreement, is a reciprocal program that prevents double payment to social security systems. Thus, when India signs such an agreement with a country, Indian workers on temporary assignment will not be required to contribute to the social security system there, if they are already contributing to the Employees Provident Fund Organisation (EPFO).

Similarly, temporary workers from that country on assignment to India would not need to contribute to EPFO if they pay social security taxes in their home country.

Contribution to social security systems in most developed countries is mandatory. But temporary foreign workers on short stays rarely qualify for social security benefits as withdrawals are permitted usually after contributing for over 10 years. So, while employees do not get any benefit, it puts additional burden on employers too as they usually have to contribute to the social security system in their country and India.

In fact, some countries that get large numbers of temporary Indian workers end up collecting substantial sums on this count, but the employees get no benefit from its proceeds. According to estimates, for instance, Indian IT professionals in the US contribute close to $1 billion every year on social security taxes.

Interestingly, until last year, it was not mandatory for international workers in India to contribute to EPFO. Now, EPFO is the recognised Indian agency under the totalisation agreements that India is entering into.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Our Vision

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions