This will benefit sectors such as aviation, telecom and infrastructure, which employ a large number of expats, making it easier for them to attract talent from abroad. Earlier, expats could take only 75% of their salaries abroad.
The central bank has changed the regulations under the Foreign Exchange Management Act (Fema) in this regard. The decision will give flexibility to companies in structuring the salary packages of expats without bothering about forex laws. Indian citizens employed by foreign companies abroad but on deputation to India will also benefit from this move.
"This is a very positive move from RBI. ... However, the expatriates have to ensure that they pay proper Indian taxes and any non-compliance will expose them to penal provisions of Indian tax laws and exchange control laws," said Amitabh Singh, partner at Ernst & Young.
* No word on pay restructure yet
Source: Economic Times RBI to let expats enjoy entire fruits of labour
Click On "Full Story" To Read Point..
By ugesh sarkar, Section Banking & RBI
Posted on Wed Dec 02, 2009 at 11:51:40 PM EST
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No word on pay restructure yet
A SENIOR executive working with an insurance company in the national capital region said the move will certainly help expat employees working in India, especially those at the mid-to-senior levels. "One cannot remit the entire amount back home, but it will certainly give the freedom to have more cash in hand and thus be able to do more things with your money," he said, requesting anonymity.
However, companies are not committing to anything yet. LG Electronics HR head YV Verma said it is a good move that will benefit expat employees. When asked if the companies will restructure the salaries following this announcement, he said it was too early to comment on that. "We will have to go through the details before making any such decisions," he said.
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