None of the below information should be considered legal or tax advice. All contractors are responsible for ensuring they comply with local laws and tax regulations in India.

We recommend consulting a qualified Chartered Accountant or legal advisor for guidance specific to your situation.

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Work Authorization

As a citizen or legal resident of India, you may work as an independent contractor with international clients, including Mercor.

You are responsible for:

  • Ensuring you are allowed to offer freelance or consulting services
  • Complying with the Foreign Exchange Management Act (FEMA) and RBI regulations for receiving international payments
  • Maintaining proper business registration and tax documentation if required

Mercor engages contractors only as independent individuals. We do not provide local employment contracts or work visas.

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Taxes & Income Reporting

Mercor does not withhold any Indian income tax or GST from your payments. You are classified as a self-employed contractor, and you must report this income to the Income Tax Department of India.

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Tax Filing Responsibilities

You are responsible for:

  • Reporting income earned from Mercor in your ITR (Income Tax Return)
  • Paying Income Tax under the appropriate slab or presumptive scheme (e.g. Section 44ADA for professionals)
  • Paying advance tax if your tax liability exceeds ₹10,000 in a year
  • Issuing invoices if required by Indian tax law

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GST (Goods and Services Tax)

  • If your annual revenue exceeds the GST threshold (₹20 lakh for services in most states), you may need to register for GST.
  • Export of services is typically zero-rated under GST, but you must file under LUT (Letter of Undertaking) to avoid charging GST on export invoices.

You should consult a CA to determine if and when GST applies to your situation.

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Invoicing & Payment

Mercor pays via Stripe, which will deposit payments into your Indian bank account in INR after currency conversion.

Mercor does not issue invoices to you — you are welcome to generate your own invoices for recordkeeping or tax compliance.

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Mercor’s Business Details for Invoicing

  • Legal name: Mercor.io Corporation
  • Address: 55 2nd St., Floor 26, San Francisco, CA 94015 USA
  • EIN (US Tax ID): 88-1741971

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W-8BEN Form (US Tax)

As a non-U.S. contractor, you’ll be asked to fill out a W-8BEN form via Stripe. This form certifies that:

  • You are not a U.S. tax resident
  • You are a resident of India and eligible to claim tax treaty benefits

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Claiming the U.S.–India Tax Treaty

India has a tax treaty with the U.S. that allows you to avoid U.S. withholding tax on business income.

In the W-8BEN form:

  • Country of residence: India
  • Foreign Taxpayer Identification Number (FTIN): Use your PAN (Permanent Account Number)
  • Tax Treaty Article: Article 7 (Business Profits)

Stripe handles this process — you don’t need to file anything with the IRS directly. Once submitted, no U.S. tax will be withheld, and you will not receive a 1099 form.