Hi,

I am an Indian citizen working for an American based company in India. Now I came to US on L1 Visa (Blanket). My salary structure for this US assignment is as follows.
- I will continue to get India salary in India (with tax for that being paid in India)
- I will be paid $5000 in US every month as "cost of living allowance" (per diem)
- My stay in US will be for 6 months.

My company told me like if I submit bills then I don' t have to pay tax for that amount in the allowance. If I don' t submit the bills (after returning back to India) I have to pay tax in India.
Also I was asked to take SSN after reaching US.

Kindly let me know whether I should pay tax in US for my allowance. If so, do I have to do it myself or my company will have to do it.

Is there anything like if I pay tax in India then I don't have to pay tax in US.


Thanks.

If you are in the U.S. for LESS that 183 days, AND your income source is from India, then your company is correct: you are NOT liable for U.S. income taxes.

That 183-day time limit is ABSOLUTE: You stay for 184 days and the tax becomes liable for U.S. and state income taxes.

Hi,

Thanks for your response.

That means even if I take SSN and I stay in US for less than 183 days I don't have to pay tax for the allowance as its source is from India. Is that right.

If my stay goes more than 183 days, then do I need to pay tax for the allowance that I got from day 1?

Actually, you would pay taxes on the per diem amount AND on your Indian salary starting on the 184th day. A dual-status return would be required.