Hello Sir,
I am going to US in L-1 visa in the month of Jan 2009.All my salary will be paid by the indian compant in US & I will be getting allowance in US for the period of stay(Min I will be there for 1.5 years).

Whether I need to pay tax both in India & US or since indian company is paying salary so I can avoid paying taxes in US (or) vice versa.

In case if I need to pay tax in US ;- what are the things I need to do?

Explain me at [email protected]

Regards,
Karthik
+91 98999 58017

Your salary as well as allowances are taxable in the U.S. irrespective of who has paid it. On the U.S. tax return, you can claim moving expenses.
For India taxes, you can post at mytaxes - Index (http://mytaxes.in)

Agreed. The allowances MAY have been tax-free if an accountable plan was used, but only if your stay was less than one year.

If you know going in that your stay will exceed one year, then the reimbursements for your daily expenses are taxable as compensation.