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    rauf2007's Avatar
    rauf2007 Posts: 1, Reputation: 1
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    #1

    Apr 12, 2007, 10:33 PM
    US-India tax treaty
    The India-US tax treaty states 'the tax treaty benefits will be lost retroactively if your stay in US exceeds 2 year period'. What does the phrase mean? Does it mean that if one has to be here for a 3rd year, he/she will have to repay ALL the tax in retrospect, including that of the first 2 years.

    In other words, if your project demands you extend your stay beyond 2 yrs, do you have to repay all the tax amount that was exempted for you for the 1st 2 years?
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
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    #2

    Apr 20, 2007, 09:38 AM
    Yes, you would have to pay the two years of taxes retroactively.
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