Anyone else got the email alert after withdrawal (Indian Paypal Users) ??

Be patient dude... everything will just work out fine...

 

follow the link for IEC form http://fsez.nic.in/form/ANF 2 A.pdf
You need to register proprietorship firm (fee approx 1k) then get PAN against your firm, then you can apply for IEC

 

Ya, here your right mate!

I just talk with one of my CA friend, he also tell me same that export code is same import export code.

Need to wait from another update from paypal.

Mandeep

 

Buddy, Export code is for that person who is going to receive funds not the payment processor. Payment processor such as bank etc have their AD code for Foreign Money Remittance.

 

OK, you mean i cant get it on my own name?

 

yes, that's all we can do.

 

Proprietorship firm will be in your name. But you need to get is registered. Further, you need a bank certificate mentioning your current account.

 

im still confused..sorry..just last time i want to clear onething

Can i get that on my own name like Preet Singh

have pan card and current account on same name too..

 

Yes you can have it, but you need to register your proprietorship firm named "Preet singh & co". proprietorship firm is a firm which is owned by an individual while in partnership firm, there are partners. In Pvt. Ltd. & Ltd company these partners or individual is replaced by directors.
Once your proprietorship firm get registered, you need to apply for PAN card for your firm. and after getting pan number (for your firm) you can apply for your firm's current account.
Then only you can apply for IEC.

 

Well not as complex. Just get a govt. certificate. Labour act / Shop & establishment or any other certificate in a name <Company Name> if it is a proprietorship firm, if you have your individual pan card, no need to apply for any other pan card as for a proprietorship firm, you and your firm are a single entity! Just take the certificate and your pan card and go to any bank and open a C/A with 10000 or 5000 as opening balance deposit.

 

but this totally ridicolus and insane to ask for IEC from everyone who are withdrawing through paypal....even a person withdrawing $100 a month from paypal will be required to provide IEC.....they could have put a limit like anyone withdrawing over $2500 every month paypal will require IEC...but if that is not the case i am pretty sure not many would like to apply for IEC...everyone cant get his company registered....

 

geez yeah.. Say, at least 10K individuals in India would be using paypal and waiting for updates from them. Now, this is gonna lead 10K "xyz & co."?????

 

yeah really dont know whats going through there minds..

 

"...I’m pleased to tell you that the RBI has now allowed us to resume bank withdrawals for settlements for exports of goods and services...."
I think you haven't noticed Mr. Farhad's statement. He clearly said that RBI has allowed Bank withdrawals only for the settlement of export goods and services. So the present condition is paypal is not allowed to resume personal withdrawals.

 

well, of course they allowed. But, to proceed with the withdrawals we need IEC code isn't it? which is what brought the chaos now..

 

Well, when you export, when you file your documents to customs for clearance, you need to give a export code for the product you are exporting. We did this regularly when we were exporting granite. The reason for this is, the government wants to know what product is being exported from where. Also this product code became mandatory after the 9/11 and the US government wanted to know what is entering their ports from where. So I guess paypal is refering to this export code. If it was IEC code, they would have specifically said IEC code. Anyway lets wait for paypal to clear this mess.

Read this line in Farhad's blog post

you will be required to fill out a new field entitled ‘Export Code’ when you request a withdrawal. This information is required under the current laws of India in order to identify the nature of cross-border merchant transactions.

This is to identify the type of material being exported. IEC code does not identify the type of material being exported. IEC code just identifies a company as an exporter

Opening a properteirship company / current account shouldnt be an issue
Best regards
Bala

 

I have a tea business registered under my firm's name. I have a vat number and central sales tax number as well. now, can i use my tea firm's name for getting IE code.

 

You make sense, but then we will need an IEC all the same right, coz when we say we are exporting blah blah, we are an exporter and need license from the government for the transaction. So again we will need a current account and the an IEC... individuals will need some kind of company registration to get a current account and then since we will be exporting stuff -> doing business, we may be required to use a business account in PayPal. so what happens to our Premier account and its money

 

Good for you mate.. don't know whats gonna happen to rest of us..

 

Yes you can use you Tea Firm to have IEC code.