Residential Permits for short-term assignees on assignments up to six months
These permits will now contain a new endorsement stating that a No Objection Certificate/Tax Clearance Certificate from the Indian Income Tax Department must be submitted at the Foreigners’ Registration Office (FRO) in Gurgaon prior to final departure.
Affected nationals must, therefore, contact their tax consultant to apply for a Tax Clearance Certificate. The special endorsement on the Residential Permit must then be cleared at the FRO in Gurgaon.
What This Means for Employers and Foreign Nationals
Foreign nationals holding Residential Permits in Gurgaon with the special endorsement will not be able to exit India without submitting a copy the Tax Clearance Certificate and clearing the related endorsement.
Impacted assignees in Gurgaon should contact their tax advisor to obtain the Tax Clearance Certificate and should contact their immigration professional for assistance with the clearance process.
In India hiring domestic staff is a common practice but this may be an unusual experience for employees who have relocated. In this post, Preeti Roongta looks at the topic in more detail.
It’s very common in India to have domestic helpers to assist you in your daily housekeeping tasks. Domestic helpers can be hired for practically everything – driving, cooking, cleaning, laundry, washing up, babysitting etc. You name it - India has skilled people for the task.
Domestic staff arrangements
When employing domestic staff in India, there is some flexibility based on the number of hours of work required each day:
Foreign nationals who wish to reside long-term in India (typically longer than 180 days) are required to visit the FRRO (Foreign Regional Registration Office) within 14 days of their arrival in India.
The FRRO's role includes issuing residence permits, visa conversions, and addressing matters related to visa extensions related to non-nationals. In short, FRRO deals with all the legal formalities that need to be completed by those intending to stay long term.
Indian bureaucracy has a reputation for being lengthy and onerous but automation and IT are being deployed to ease these issues. However, for relocating employees and their HR teams…
You may have read our recent post about India as a potential destination for businesses considering expanding overseas. If not, you can read it here.
And who should make front page news this week by setting up business in India? None other than global brand and the world's largest furniture retailer, IKEA.
The Hyderabad store is IKEA's first opening in India, followed by plans to open shops in all major cities over the coming years, with sites already purchased in Mumbai, Bangalore and New Delhi.
IKEA's global chief executive Jesper Brodin said, "The market of India for us is a dream."
India is fast becoming an attractive destination for foreign investments.
The Indian Government has taken huge steps to ease the regulatory environment for foreign investment, catapulting India into the position of one of the fastest-growing economies in the world.
It has been ranked among the top attractive destinations for inbound investments in the world, according to Ernst and Young.
So, what has India got that is so attractive to foreign businesses?
You have made your decision: you are going to work abroad. You are becoming an expat. For a year, two years, maybe even five years. On the one hand, you are (probably) looking forward to this new and exciting opportunity. On the other hand, there is so much to take care of before you can actually relocate. Are you well prepared? And how do you know if you have taken everything into account before moving?
India isn't just a country - it is an experience that may well overwhelm your senses if you are not prepared. To help mitigate culture shock and to help you make the most of your time in India, here are some great practical tips you should know before you move there, courtesy of Preeti Roongta.
1. Local Registration
If you plan to stay in India for more than 180 consecutive days, you are required to register at the Foreigners’ Regional Registration Office (FRRO) within the first 14 days of your arrival.
Do You Have to Pay Tax?
When renting a residential property in the UK, the tenant must pay Stamp Duty Land Tax (SDLT) if the rent is over a certain rental amount in England and Northern Ireland, Land and Buildings Transaction Tax (LBTT) in Scotland, or Land Transaction Tax (LTT) in Wales (as of 1st April 2018).
The value thresholds are £125,000 in England and Northern Ireland, £145,000 in Scotland, and £180,000 in Wales (as of 1st April 2018).