US govt allows law on H-1B visa fee to lapse

The duration of law, which was expected to end in September 2014, was extended by another year under James Zadroga 9/11 Health and Compensation Act of 2010.

Oct 03, 2015 10:10 IST India Infoline News Service

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The US government has allowed the law imposing a US$2,000 tax on H-1B visas to lapse.

The legislation with regard to a US$2,000 fee on H-1B visas for companies having more than 50% of its employees oversees was adopted by the US Congress in 2010.

The law contains provision to hike H-1B and L-1 visa fee per application by US$2,000 and US$2,250, respectively, for a qualifying firm.

The duration of law, which was expected to end in September 2014, was extended by another year under James Zadroga 9/11 Health and Compensation Act of 2010.

The National Association of Software & Services Companies (NASSCOM) welcomed the US move to allow the bill to be lapsed.

“We have been raising this issue at all levels with the US government. This rule was targeted at India and India-centric companies, and it is discriminatory,” said Shivendra Singh, vice-president at NASSCOM.

The Indian IT industry could save as much as US$80mn a year if this fee is revoked, he said.

But Singh warned that this bill could reappear in some form or the other during the course of this year.

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