To All Indians Here, There is lot of confusion about Payment Processing, Paypal, Taxes, PAN, IEC No and other money related issues. After reading following threads, still have some (in fact, many) doubts. http://forums.digitalpoint.com/showthread.php?t=345049 http://forums.digitalpoint.com/showthread.php?t=85595 http://forums.digitalpoint.com/showthread.php?t=250498 Most of the information give at the threads above is out dated, as far as laws are concerned. So I am listing some question below and hoping experienced Indian members will help newbies out. Question No:1 Is it mandatory to have IEC No.(Import-Export Code No.) for starting out individuals (like may be earning $500 - $1000 a month.) If not how much money can be transfered to our bank account from our paypal account per month and how many times in a calender year. Question No:2 Is it legal to transfer our funds from our paypal account to our bank savings account. Or should it be a current account only? Question No3: Can individuals get IEC No. or have to setup a firm? Question No4: How affiliate network checks especially Google adsense checks treated? As we are not providing any service here, but only presenting information on our websites. Do we need IEC No to receive affiliate checks also? These are few questions which are bothering me, you could include other important info for Indian webmasters, designers, SEO and programmers. Thank You. Rana
Question No:1 Is it mandatory to have IEC No.(Import-Export Code No.) for starting out individuals (like may be earning $500 - $1000 a month.) If not how much money can be transfered to our bank account from our paypal account per month and how many times in a calender year. No it is not. BUT it is good to have it. IEC by itself does not help much unless you have a EOU or a STPI grant. Question No:2 Is it legal to transfer our funds from our paypal account to our bank savings account. Or should it be a current account only? Can be savings. Can be current. Both valid. Question No3: Can individuals get IEC No. or have to setup a firm? Yes. Individuals CAN get a IEC in their name. Question No4: How affiliate network checks especially Google adsense checks treated? As we are not providing any service here, but only presenting information on our websites. Do we need IEC No to receive affiliate checks also? You are providing a service here. By being an affiliate. If those checks are in foreign currencies you may need IEC ONLY if your bank demands it. If yoru bank does not demand an IEC then its fine! You do not need to tear your hairs over it. If those checks are INR (Ex a paypal check) you do not require anything.
Can you please update about this information which you have posted for year 2007. Is there any changes in new budget (2008-09).
I fully support of what has been posted by sandra. Documents and paperwork always keep your company safe from all legal tangles. I can't comment on what I had posted as I have now left India and reached US. I am not in a position to answer this now as i am no longer aware of the new developments in the country. A CA would be much of a help though Regards Al
I contacted getjimmy through PM about OP, following is his reply. Every one who works from India is welcome to share their knowledge about these issues.
Have you got local tax registrations (VAT, etc.) done? It may be required for your business. It is better to discuss with a Chartered Accountant, else it might become a bit difficult down the line when one wants to regularize one's business.
Hi Anand, Thanks for participating, This thread is mainly for individuals who starting out their internet business (service or otherwise). What kind of precautions starters need to take and like.
There is no sort of VAT applicable on internet business as all IT firms and business are exempt from the same. However if rules have changed then do let me know about the same. Al