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Published on 9/10/2019 10:50:29 AM | Source: Dion Global Solutions Ltd

India, US should sign totalisation agreement for social security: TPCI

Posted in Economy News| #India #Economy #US

Trade Promotion Council for India (TPCI) on Tuesday suggested that India and the US should sign totalisation agreement as it will provide social security to Indian professionals in America. TPCI Chairman Mohit Singla said that the totalisation agreement is an international social security pact that eliminate dual social security taxation, both in the home country and in the nation where an employee works. He said that this agreement should be part of the trade deal being negotiated by India and the US. "Once it is signed, the agreement would benefit workers of both the countries and ensure equality of treatment," Singla said in a statement.

Indian works are paying whopping taxes on their income in the US. So, either they are allowed to avail all social security benefits after eight years or their working visa is extended beyond 10 years so that they are not adversely impacted and get all benefits at par with US citizens, he added. It is a long pending demand of India for early conclusion of the totalisation agreement or Social Security Agreement with the US. It aims to protect interests of professionals of Indian-origin who contribute more than USD 1 billion each year to the US social security. Under this pact, professionals of both the countries would be exempted from social security taxes when they go to work for a short period in the other country. Further, he said that industry is hopeful that India-US trade deal would reduce trade friction and also curb dispute cases, undergoing in the World Trade Organisation. "Out of 32 cases that have been filed against India so far at WTO, 8 cases has been from US side alone," he added.