My US based employer is not registered in India - join middle vendor for pay check until stuck in India?

USA H1B Visa
1

Hello Anil,

Hope all is well. Could you please guide me here.?

Situation - Working with company A (EVVC model) in USA, came here to visit India in March-2020 and stuck here on 221g and still it’s pending. Now, as per vendor ( implementation partner) compliance rules they are not able to give me work in India based on USA contract, but they are helping me to give work with new contract in india, but in that case they were asking if my employer and middle vendor both have India entity( Registered company in India).

Questions : -

  1. My US based employer is not registered in india so can i join middle vendor/ some other company until i am here in India? If I do so will there be any problem in 221g result even implementation partner and client would be same and ready to handle 221g case.? Also,If I join new employer or middle vendor would i lost my h1b continuity with my current employer and will face any problem in h1b in future?

  2. If I join new employer / vendor and later embassy ask me to submit payslip from current employer to check my employment with current employer once they open back after covid -19 will I face any problem, though I am getting pay based on India pay rate in USA bank account.?( I have submitted all asked documents to officer three months back)

  3. If I get pay in india bank account from new employer / vendor will it create problem in future while filing US tax return in 2021? or not continuity with current employer while having 221g in future?

  4. do you have any idea if embassy has started to work on 221g?

Thanks for your time hope you will response as usual.

2

You can join middle vendor if they are ready to keep giving you work and pay in Indian account.

It does not matter for visa stamping as to where you get paid. Once you are out of US, H1B visa does not apply to you at all.

When you go for visa stamping, you have to show the employment documents that will show that you will work legally in US. If you are working in India for last couple of months, visa officer may not ask for US pay slips at all.

What has been requested in form 221g though? Your H1B is still held by the employer who sponsored you.

The middle vendor arrangement that you are talking about is only for short period and as per my understanding, they will not file any H1B. They are just trying to keep paying you salary as a consultant deputed in ‘India’.

4

Hello Anil,

Documents asked were : -

  1. W2(2 yr’s) ,
  2. Client letter,
  3. Employer-employee contract(offer) letter,
  4. employer to client contract paper,
  5. project details,
  6. itinerary of services.

Yes, I think they are not going to ask any more documents once they open back embassy for further process.

Do you have any idea if they are working on 221g cases in background? I read few comments on other blog where people have put comment that their application status got changed from “Refused” to “Admin process”.

5

US embassy is working on 221g cases in the background.

6

H1b extension got approved for consulate processing and I was not authorized to work in US so had to leave the country and get stamped in India.

But since consulates are closed for routine visa issuance I am stuck in India. My employer wants me to continue working for them but they don’t have an entity set up in India or have any other operations.

Which is the best(cheapest and less tax liabilities) way to get paid legally? I will be getting about 5k USD bi-weekly if it makes any difference.

  • Finding an agency that can put me on their payroll and the agency will get in a contract with my employer
  • Invoice the employer as freelancer and they can transfer money to my account directly

Are there any other options?

Thanks!

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