US doubles H1B visa fee; Indian companies to be hit
Washington, Dec 17, 2015, PTI:
Notwithstanding India’s objection, the US Congress has doubled a special fee on the popular H-1B and L-1 visas, raising it up to $4,500 to fund a 9/11 health and compensation act and biometric tracking system that will hit Indian IT companies.
Congressional leaders, while agreeing on the $1.1 trillion spending bill, on Wednesday decided to impose a special fee of $ 4,000 on certain categories of H-1B visas and $4,500 on L-1 visas. The US House of Representative is slated to vote on the $1.1 trillion spending bill deal on Friday.
The money generated from the special fee, expected to be more than a billion dollars per annum, would be used to fund a biometric entry and exit tracking system, in addition to funding health screenings and treatments for 9/11 first responders.
According to the agreed bill, the new $4,000 fee would apply to companies having at least 50 employees with 50 per cent of their employees on H-1B or L-1 visa.
Such companies would have to pay a new fee of $4,000 for H-1B visas and $4,500 for L-1 visas. While the specific provisions of the spending bill has no mention of Indian IT companies, the language of the bill suggests that it would have a big impact on Indian IT companies.
Though the lawmakers behind the bill described it as a temporary provision, the new H-1B and L-1 visa fee increase is for a period of 10 years as against a previous provision of five years. The previous such provision from 2010 to 2015 of $2,000 for H-1B visas lapsed on September 30.
Nasscom had earlier stated that Indian IT companies have paid between $70 to 80 million annually for the US treasury.
Congressional leaders, while agreeing on the $1.1 trillion spending bill, on Wednesday decided to impose a special fee of $ 4,000 on certain categories of H-1B visas and $4,500 on L-1 visas. The US House of Representative is slated to vote on the $1.1 trillion spending bill deal on Friday.
The money generated from the special fee, expected to be more than a billion dollars per annum, would be used to fund a biometric entry and exit tracking system, in addition to funding health screenings and treatments for 9/11 first responders.
According to the agreed bill, the new $4,000 fee would apply to companies having at least 50 employees with 50 per cent of their employees on H-1B or L-1 visa.
Such companies would have to pay a new fee of $4,000 for H-1B visas and $4,500 for L-1 visas. While the specific provisions of the spending bill has no mention of Indian IT companies, the language of the bill suggests that it would have a big impact on Indian IT companies.
Though the lawmakers behind the bill described it as a temporary provision, the new H-1B and L-1 visa fee increase is for a period of 10 years as against a previous provision of five years. The previous such provision from 2010 to 2015 of $2,000 for H-1B visas lapsed on September 30.
Nasscom had earlier stated that Indian IT companies have paid between $70 to 80 million annually for the US treasury.
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