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.
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.
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.
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
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.
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.
Mercor’s Business Details for Invoicing
- Legal name:
Mercor.io Corporation
- Address:
181 Fremont St, 33rd floor, San Francisco, CA 94105, United States
- EIN (US Tax ID):
88-1741971
As a non-U.S. contractor, you’ll complete a W-8BEN form as part of your contract onboarding. It is the Sign W-9 / W-8 BEN form step on your offer page: you fill it in and sign it on Mercor, not through Stripe.
This form certifies that:
- You are not a U.S. tax resident
- You are a resident of India
In the Tax Identification section, use your PAN (Permanent Account Number) as your Foreign tax identifying number (FTIN).
Claiming the U.S.–India Tax Treaty
The form’s Claim of Tax Treaty Benefits section is optional — its own tooltip notes that most Mercor users do not complete it. If you do claim under the U.S.–India treaty, the article covering independent contracting income is Article 7 (Business Profits). Speak to a Chartered Accountant if you are unsure whether to claim.
You don’t need to file anything with the IRS directly: the form is submitted to Mercor and kept on file. Mercor does not withhold U.S. tax from your payments, and you will not receive a 1099 form.