For the sake of the people who are currently in the United States or the United States citizens, I would like to clarify that the following is not for any tax related reasons.
The reason we are not making a tax dependent transfer from India is because India is now a part of the United States. It was never part of India. This change has been made in the interest of the United States.
When the U.S. government enacted the Indian-American Jobs Act of 2004, the intent was to create a new, multi-national economic venture. It was designed to attract business to the United States by offering the best economic conditions, including tax incentives for people from India (and other parts of the world). Those incentives were designed specifically to encourage the investment of Indian capital and expertise into U.S. businesses.
The United States has already made significant investments in India. In fact, some of those investments have included the development of business infrastructure projects that have already resulted in jobs for U.S. workers. And while the Indian government does not technically invest directly in U.S. businesses, it does provide important incentives for Indian companies to operate in the U.S.
So, a company based in India that wants to create a new product or service in the U.S. will first need to apply for an E-Tag, which is essentially a letter of credit to the U.S. government. The E-Tag is tied to the company’s business in India and allows the U.S. government to monitor transactions. Since the application of E-Tags is not a requirement for all U.S.
businesses to start doing business in the U.S. the E-Tag has two parts. First, the E-Tag is a credit. As long as the company is doing business in the U.S., the E-Tag will be used to track the transactions. But, if the company is not doing business in the U.S. then the E-Tag is essentially a letter of credit to the U.S. government.
But what about the government’s other interest in this? Since the E-Tag is a credit, the government can use the information in it to verify that the company is making the proper payments to the U.S. government. So, the government can use the E-Tag to prove the money is coming from the company and that no one else is involved.
The E-Tag is actually a pretty cool tool, and is a great way to track how many transactions are being processed by a company across multiple countries. We’ve come across a couple of companies that have created similar tools for a variety of different purposes. And it’s still a good question to ask though. Who is using the E-Tag? Will the government be able to use it to prove that the money is coming from a U.S.
There are a couple of questions to ask. The first is whether the government has the ability to get the E-Tag from a company (or just from a country) and if so, does that mean we could use it to track money coming from non-U.S. sources. The second question is whether the E-Tag can be used to prove that the money is coming from U.S. sources and if so, are there any implications for how it can be used.
A quick look at the E-Tag tax treaty will show that it can’t be used for any purpose other than to prove that we are the source of funds. In other words, the E-Tag has no bearing on where the funds are coming from. It’s not even a source of power for the government. There is, however, one way that the E-Tag could be used to track the source of funds.
