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.