The law comes as a shock for the Indian IT companies as they would have to pay millions of dollars while applying for H-1B visas, as they heavily rely on this work visa for highly skilled IT workers to get their work done in the US.

Indian IT companies have termed it as highly discriminatory and punitive as the text of the legislation has been written in such a way that such a high fee would have to be paid by only major Indian IT companies.

Companies having more than 50 employees and having more than 50 percent of their US employees on H-1B and L1 visas would have to pay the new fee when the next visa application session kicks off on April 1, 2016.

This year’s Congressional approved quota of 65,000 H-1B visas was filled up in the first few days of the start of the application process on April 1.
The law also paves the way for the implementation of the long pending IMF Quota and Governance Reforms. Approved and passed by the IMF in 201O, it could not be implemented because the Congress had not passed it.

IMF Managing Director Christine Lagarde said the adoption of legislation by the US Congress to authorize the 2010 Quota and Governance Reforms is a welcome and crucial step forward that will strengthen the IMF in its role of supporting global financial stability.

Read more: USA to double H1B, L1 visa fee for Indian firms

Latest News from World News Desk