Monday 12 October 2015

H-1B visas to get cheaper as US lets fee rule lapse

 In a breather for Indian IT firms, the "discriminatory" $2,000 H-1B fee mostly imposed on them has now lapsed in a Republicanmajority US Congress. 

The charges, often called outsourcing fee, had forced Indian IT companies in the last few years to pay millions of dollars towards protecting the US-Mexican border from illegal immigration. Indian firms had described the fee on highly-qualified IT professionals coming to the US on an H-1B visa as "discriminatory ." 

The legislation with regard to a $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 mainly at the instance of a group of lawmakers led by Senator Charles Schumer

Passed on August 10, the law contains provision to hike H-1B and L-1Visa fee per application by $2,000 and $2,250 respectively for qualifying firm; which mainly targeted Indian IT companies. The duration of law was extended from four to five years under James Zadroga 911 Health and Compensation Act of 2010 to provide healthcare and financial compensation for the firefighters and other 'First Responders' who helped out in the aftermath of the 911attack. 

In a report released last month, Nasscom said Indian tech industry contributed an estimated over $375 million during this period to the US Treasury including helping America secure its borders. 

In a recent interview, Nasscom president R Chandrashekhar described the fee as unjustified. "It had nothing to do with the IT industry . It was applied in an inequitable way , which specifically targeted Indian companies," he said, adding that he would welcome any move to eliminate the fee.

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