The Indian company can engage the services of foreign national including non-resident Indians on a short-term assignment. (Remittances for engagement upto 3 months time can be allowed by the authorized dealers provided the foreigner holds any type of visa tourist, business or employment, etc. For periods more than 3 months and upto 12 months, authorized dealers can allow remittances provided the foreigner holds a valid business visa. Such engagement for a short term does not require approval of the Reserve Bank, Before engaging foreign technicians or any foreign national, for such short-term engagements, the following essential points are required to be noted :

a. Clearance from the Ministry of Home Affairs has to be obtained if the period of      engagement of any single foreign national exceeds one year at one time.

b. The total duration of engagement of foreign nationals by the Indian company should not      exceed twelve man months in a calendar year

c. The amount of remittance sought for is in accordance with the terms of contract entered      into by the applicant firm / company with the foreign national / company.

d. The services of the foreign national are not covered by any foreign collaboration agreement     entered into by the Indian firm / company or under any warranty / guarantee obtained     providing for deputation of the foreign national without any remuneration or any payment     during the warranty / guarantee period.

If the above conditions are fulfilled, the Indian company can engage the services of a foreign national including a foreign technician and make remittances of the remuneration payable to such foreign national or technician by submitting to the authorized dealer in foreign exchange a statement in Form EFT and a No objection Certificate from the income-tax authorities indicating the remittable amount. Before allowing the remittance, the authorized dealers would verify the statement made in Form EFT and other documents and the information submitted by the Indian company and satisfy himself of the fulfillment of the aforesaid four conditions.

After making the remittances, one copy of the EFT and original No Objection Certificate received from income-tax authorities will be forwarded by the authorized dealer to the Reserve Bank of India.

It should be remembered that any remuneration paid to the foreign national / technician including payment made towards their passage fare, local living expenses, etc., are liable for levy of cess under the Research & Development Cess Act, 1986. Such cess should be deposited before making an application for remittance to the foreign national / technician.