(Locked) PayPal Payment issues for Indian Residents

I got the funds from bank back in my paypal account.

but, when I try to withdraw funds to bank. it is showing US bank only. no Indian bank

also, withdrawing is confusing. they are telling we should have invoices etc to prove. what is that. I am scratching my head

PayPal has started allowing withdrawals again. There is an extra field added… “Purpose Code”.

So, I put a test withdrawal selecting “Software Consulting”. Now, we may require to withdraw funds for separate purposes, separately. It would be nice if we are allowed to select more than one purpose together in future.

Questions:

They told us about the export code thing… but now, they did not mention it and have asked just for filling the purpose code field. So, is the registration for export code (http://www.dgft.org/IEC_Code.html) only for the people who do import/export of physical goods (mainly the e-Bay people)?

Because as far as we are concerned, we do not import/export anything. We just provide services.

I understand that our bankers may ask us for any proof of the income that we earned. But, how will we be able to prove it? Will I have to personally visit the bank branch and show the PayPal invoice?

PayPal has started allowing withdrawals again. There is an extra field added… “Purpose Code”.

So, I put a test withdrawal selecting “Software Consulting”. Now, we may require to withdraw funds for separate purposes, separately. It would be nice if we are allowed to select more than one purpose together in future.

Questions:

They told us about the export code thing… but now, they did not mention it and have asked just for filling the purpose code field. So, is the registration for export code (http://www.dgft.org/IEC_Code.html) only for the people who do import/export of physical goods (mainly the e-Bay people)?

Because as far as we are concerned, we do not import/export anything. We just provide services.

I understand that our bankers may ask us for any proof of the income that we earned. But, how will we be able to prove it? Will I have to personally visit the bank branch and show the PayPal invoice?

that sucks
So much for the “safer, EASIER way to pay”
do they have plans to implement this stuff for other countries too ?

that sucks
So much for the “safer, EASIER way to pay”
do they have plans to implement this stuff for other countries too ?

This was not done by PayPal. RBI (Reserve Bank of India) asked them to do so. RBI wants to track the nature of cross border transactions done by PayPal. May be it is just for Tax purpose.

That is why all the personal payments are stopped and from 3rd March onwards PayPal is designed only and only for business use.

So, if anyone is still thinking to not to pay taxes… then it is not possible.

that sucks
So much for the “safer, EASIER way to pay”
do they have plans to implement this stuff for other countries too ?

This was not done by PayPal. RBI (Reserve Bank of India) asked them to do so. RBI wants to track the nature of cross border transactions done by PayPal. May be it is just for Tax purpose.

That is why all the personal payments are stopped and from 3rd March onwards PayPal is designed only and only for business use.

So, if anyone is still thinking to not to pay taxes… then it is not possible.

that really sucks
so how much % tax do you pay ?

I sent a mail to Paypal regarding purpose code. I clearly explained what I do and how I get funds. But in reply, they sent me a mail with some other name.. i.e. I inquired with the name “saurabh sharma” and they replied as

Dear Anil Nanduri,

Thank you for contacting PayPal.
Who Anil Nanduri ?? What Anil Nanduri?? They are simply forwarding replies to one another. Moreover, they didn’t clearly said what purpose code should I use. They just mentioned the table of codes and said.. choose the right one from it.

They told us about the export code thing… but now, they did not mention it and have asked just for filling the purpose code field. So, is the registration for export code (http://www.dgft.org/IEC_Code.html) only for the people who do import/export of physical goods (mainly the e-Bay people)?

They are asking to select a purpose from that drop down combo. once you select a purpose, it’s code will be automatically generated at the other end (i.e. to Bank). More info here.

that really sucks so how much % tax do you pay ?

http://law.incometaxindia.gov.in/TaxmannDit/xtras/taxcalc.aspx

Now paypal allow withdrawing to India bank. I just withdraw $180 on 6th, today I received the amount to my bank account (ICICI).

In purpose of withdrawl menu I choose Licensing revenues option

In purpose of withdrawl menu I choose Licensing revenues option

Thats a good news … finally
Did you consulted someone about purpose codes? I am still confused about withdrawing all the funds at once. They are a mixture of different types of services.