US hikes H-1B, L-1 visa fee, TCS says 'not a big concern'

Washington: The US on Tuesday notified massive increase in fees in certain categories of the popular H-1B and L-1 visas which would mainly hit Indian IT companies.

However, India's largest software services company, Tata Consultancy Services (TCS), said the hike was not a "big concern" and that it will use its resource deployment model to mitigate the impact,

Talking to reporters, TCS chief executive and managing director N Chandrasekaran said the visa fee hike was more of a cost issue than a revenue issue.

"We have an idea about what the impact will be, based on the trend, but we need to see going forward our resource deployment model to mitigate some of that. So, we have got multiple options, I would not overly write that as a big concern," he added.

The US Citizenship and Immigration Service (USCIS) said applicants for certain categories of H-1B visas post December 18, 2015 must submit an additional fee of USD 4,000. In addition, for those applying for certain L-1A and L-1B must submit an additional USD 4,500.

Referring to the Consolidated Appropriations Act, 2016 signed into law by US President Barack Obama on December 18, 2015, USCIS said the additional fees apply to petitioners who employ 50 or more employees in the US, with more than 50 per cent of those employees in H-1B or L (including L-1A and L-1B) non immigrant status.

This fee is in addition to the base processing fee, Fraud Prevention and Detection Fee, American Competitiveness and Workforce Improvement Act of 1998 fee (when required), as well as the premium processing fee, if applicable. This will remain effective through September 30, 2025, USCIS said.

In a statement, USCIS warned that it will begin rejecting H-1B and L-1 visa petitions received on or after February 11, 2016 that do not carry the information required under the new law.

USCIS has also revised the necessary forms in this regard. During the 30-day period immediately following this web alert, USCIS may issue a Request for Evidence (RFE) to determine whether the additional fee applies to the petition.