I have been sponsored to the US via L1 visa. In case I will be paid in the foreign country, will I still be taxed in the US? Does it mean that my salary will be taxed in both the foreign company and the US?

If your salary is sourced from your home country, you will Not pay U.S. taxes for 2012 unless you gave met the Substantial Presence Test.

ATE, you might want to reconsider this answer. Do you really think that U.S. tax is based on where the payment is made?

Yes, if the non-resident worker has not yet met the Substantial Presence Test. In virtually EVERY tax treaty, if the worker is drawing his salary from his home country and he spends LESS than 183 days in the calendar year, his salary is tax-exempt from all federal taxes.

The STATE may have an argument that the salary is subject to STATE income taxes, but the case for tax exemption from the federal income and employment taxes is black letter treaty law.

I didn't see that he was from a treaty country.

Which treaty is it?

I assumed it was India. Most L-1As that I deal with are from India.