I'm working for a company in India. I have an onsite interview for a company in the Schengen area. I have to apply for a short-stay business visa. The application requires me to mention my current employer's name and details and submit documents like employment form, compensation statement etc related to it.

It is embarrassing to tell my employer about an interview elsewhere. All costs are being paid by the other company. Can I mention that company (prospective employer) as my employer in pt. 20 of the form? https://www.schengenvisainfo.com/wp-content/uploads/2016/06/application_form_english.pdf

I don't know why the embassy would want to know my current employer, when this employer is nowhere a part of the transaction.

Even if the embassy allows to mention the prospective employer as current employer for the purpose of this application, will it create issues when I am trying to enter the country later?

What is the best way to deal with such a situation?

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    Are you asking if you can state that your prospective employer is actually your current employer in your visa application, to avoid your real current employer finding out about your interview? If so, the answer is “No, you can’t” - you have to tell the truth about your personal & financial situation and the reason for your intended trip and provide evidence to support it. – Traveller Aug 17 '18 at 17:47
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    Please take a look at travel.stackexchange.com/questions/103435/… . The OP in that question has posted his own experience as an answer and it will provide you good pointers about how to draft your application and cover letter. – RedBaron Aug 17 '18 at 18:17
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    Think about it a minute. If that company were already your employer, how are you employed in India? What name appears on the salary payments as the payer? Etc etc. Lying on a visa application? Bad joojoo. Lying on a visa application when you might need to apply later for another visa? Real bad... – user67108 Aug 18 '18 at 4:25