New Bank Withdrawal Instructions for Our Customers in India - thepaypalblog

Originally Posted by eyashwant View Post
So what will they do if people dont file tax?

May be my friend they will close your paypal acc

 

What code to put if your withdrawal amount includes Affiliate Earnings, Web Programming , SEO Service etc ..

 

What is a Purpose Code?

The purpose code helps your bank furnish information that may be required by the Reserve Bank of India to identify the nature of the cross border transaction. Details on the different purpose codes are in the table below. Please note that this is different from the Importer Exporter Code (IEC) issued by the Ministry of Commerce and Industry.

When is a Purpose Code needed?

When you initiate a withdrawal, you will now be required to declare a purpose code when you are completing the bank withdrawal request.
Please note that according to Indian law, based on the value of withdrawal and the purpose code in your declaration, your bank may require you to provide documentary proofs such as invoices / goods receipt forms as applicable to reconcile with your withdrawal.

 

well, i fall into multiple categories. i will go with any one that suits me for sure as of now.

 

Trust the pencil pusher knob headed bureaucratic dimwits of the indian govt. to take something simple as arithmetic and turn it into complex quantum mechanics. Give them a horse to design and they will build you a camel. I see no end to the confusion. More grief will ensue once the boneheads in the banks start asking about the purpose of remittance and the associated proofs.

 

oh come on now...they won't "close" your Paypal account for not paying taxes. They'll just ask you to pay them. If you've withheld a LOT of taxes, they would proceed with legal action against you.

The IT department really doesn't have the resources to go after a small time freelancer making Rs. 40,000 p.m. His tax liabilities would be way less than what the IT department would spend in retrieving the taxes from him.

Don't worry too much about the code unless you are in the big league, transferring thousands of dollars per month.

 

They say bank will also for invoice what exactly dis means ??

 

What code to use for persons like me who earn from ebooks,selling sites and domains?
Can anyone help me?

 

No i dont think you are right, for designers it comes under "Licensing of creative works" so the code should be P0902

 

Can anyone tell me whats the code for publisher??

 

Exactly...I earn from selling banners , links , popunders on my websites...Then i earn from vcc sales , affiliates etc..

Dunno which code to put...:|

 

and what will be the code for webhosting and it addon?

 

As promised on Friday, Farhad Irani here with more details for our customers in India on how to withdraw your funds from your PayPal account to a local bank account in India.

As I indicated in my earlier blog post, we are making changes to comply with Indian regulations for settlements for exports of goods and services. In order to facilitate this process, PayPal will be suspending new withdrawals on March 1, 2010. We expect to resume the service on March 3rd. When you select the ‘Withdraw Funds’ option on your PayPal account after March 3rd, we will ask you to fill out a new field entitled ‘Purpose Code’. This information is required under the laws of India in order to identify the nature of cross-border merchant transactions.
Why are we asking you to do this?

PayPal needs to put in place certain changes to comply with Indian regulations. This means that

1. Indian PayPal users (Business, Premier and Personal Account Holders) are no longer able to receive personal payments. Your customers now have three options to pay you by
1. Using the Pay for Purchases (Goods or Services) tab
2. Completing PayPal checkout at your website
3. Responding to PayPal “Request Money” instructions (invoices)
4. When you instruct PayPal to withdraw your PayPal balance to your bank account in India, you will be required to provide a purpose code for the transaction.

What is a Purpose Code?

The purpose code helps your bank furnish information that may be required by the Reserve Bank of India to identify the nature of the cross border transaction. Details on the different purpose codes are in the table below. Please note that this is different from the Importer Exporter Code (IEC) issued by the Ministry of Commerce and Industry.
When is a Purpose Code needed?

When you initiate a withdrawal, you will now be required to declare a purpose code when you are completing the bank withdrawal request.

Please note that according to Indian law, based on the value of withdrawal and the purpose code in your declaration, your bank may require you to provide documentary proofs such as invoices / goods receipt forms as applicable to reconcile with your withdrawal.
What do you need to do?

Step 1: If you have initiated a withdrawal prior to March 1st it will be restored to your PayPal balance. The initial amount you receive back in your PayPal balance will be less than the amount you withdrew; all applicable fees and charges will be credited to your PayPal account separately. This credit for fees and charges may take a few days to be reflected in your PayPal account balance, but we expect the full amount of the original withdrawals to be in all of the applicable PayPal accounts by the end of the week. Please bear with us as we complete this process.

Step 2: Once the funds are back in your PayPal balance, or if you have no pending withdrawals as of 1st March, starting on 3rd March you can request a new withdrawal to your local bank account, and you will need to select the Purpose Code relevant to your business.

Rest on www.thepaypalblog.com

 

Hey Guys,

Do we need to get some documents from our banks in order to initiate withdrawals or the purpose code itself is enough?

Let me know please. Thanks.

 

which code should be used for Affiliate Earning ?

 

We need to use any code which fit with mention codes, neither PayPal nor RBI knows how we earn money.

 

I think P1007 or P802 will do that.. I'm not sure. Better contact paypal from your own account for the best solution.

 

That comes under blogging and content services, So it has to be P805 or P806
Best bet is to call paypal and ask them, that in which category we are? Irani dude suggested this too.