Snapshot of the relocation scene

Mark McAlea, consultant with international assignment management specialist IPM, speaks to Re:locate about current mobility issues in India.

‘India is very much a destination of choice at the moment for many of our big clients. There are two key areas that they and others have to overcome.

Entry and exit

‘The first is that it is difficult on occasion to secure the right visa to enter the country. India has a number of different visas, from three-month to 12-month visas, depending on the applicant’s job role in the country.

‘It is up to the embassy which length and type of visa is issued. This can be a single-entry visa. So, if the employee leaves the country, they need another to re-enter.

Home truths

‘The second issue, and a bigger concern, is that there is a mismatch between expectations and the available accommodation. It can be the case that top-level employees are shown round properties by real estate agents that aren’t in a fit state.

‘Some real estate agents are also trying to lock clients into two-year lease agreements when assignments are just for a year or 18 months.

‘The price of accommodation can also very wildly. Prices have grown exponentially over the last few years or so. We’ve therefore put together a framework for accommodation budgets for each of the major centres so our clients can get a good handle on the costs involved.

Taxing questions

‘The tax system is very similar in principle to the UK. This is especially the case with the concepts of resident in India for tax and ordinarily resident in India for tax.

‘The top rate of tax is 30 per cent, with a 10 per cent surcharge for those earning in excess of 1 million rupees – most high-earners will therefore be subject to this.

‘Employers are also subject to a “fringe benefit tax”, where non-salary benefits and payments are taxable.’

IPM, established in 1995, is currently helping clients manage international assignees in more than 50 home and 60 host countries. For more information, please contact www.ipmltd.co.uk.

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