Important Update from Paypal for PayPal India Users : Change in User Agreement

I agree 100 % with that article and that has been my thoughts for some time now. The tax that the common man pays to the government is for the infrastructure, job opportunities and umpteen things that the govt provides for the common man.

In the case of Internet marketing / Freelance Programming , the government has very little part to play in the process. The only thing the government provides is Internet connectivity and Electricity for which we pay the bills and the service taxes associated with it. Imagine, one can use the internet to simply watch porn & whack oneself or use his skills, ingenuity to earn & bring much needed foreign exchange in to the country.

I think, it is high time the government and the regulators stop hindering small time freelancers and internet marketers and should start supporting them by easing the process of getting their money, and should also reduce / abolish the taxes. The taxes should not be more than 10% for internet marketers / Freelancers!!

 

@Adithya,

>> 1. Paypal has not yet implemented these polices strictly since it requires significant coding

Nope I dont think so. It is not that hard to code that part. All they have to do is ask Indian Paypal account holders to enter a default bank account if they have multiple bank accounts attached to the PP and make a simple chunk of code that withdraws the money to the bank account.

Also, they had more than 1 month prior to March 1 to implement these changes. But if they implement those changes, ie ) automatic withdrawal of funds to bank acc within 1 week, they might well incur losses or atleast experience serious drop in their profit levels frm Indian PP accounts. What can Paypal do, if some one files a Paypal dispute after 7 days? How can they recover that amount that went into the bank account? So they have to start closing those accounts = Drop in Profit !!

Plus, they wont get any interest amount that they have been getting all these while for the money they held. Also there are umpteen accounts that just lie idly or have been forgotten by the users having 10$ to even couple 100 $. Paypal, by default, gets all those money.

In summary, these changes are completely against paypals model of business and they wud be doing all they can in the background to prevent from implementing those changes.

Of course, if you ask them they would indeed say to follow all those new regulations. What else can they say? Will they say, forget the new rules & regulations set by your government? No, of course not.

 

Great insight.

I hear that one reason why RBI is forcing paypal to withdraw money into bank accounts is because Indian users aren't getting that interest. What if a freelancer says, "I don't want the damn interest!"

Why does the government have to interfere in these fairly honest things freelancers are doing while the big looters openly get away with $xx billion scams that we hear about every ****ing week? It is high time for some serious change in the way things are running in this country.

 

Paypal has never told us what the reason is behind govt steps but i am sure foriegn companies cant just deal in such a manner unless proper permissions and licenses are obtained

 

Its just another way to extort money bro

 

hi,
i just want to know if it's a democratic way/rules from the government it self ?

 

Once the money comes in your BANK, it is TAXABLE under Indian Laws.

 

lol if u knw the amount of money RBI would be dealing wid i think paypal india transcations would be a joke economic rules are rules cant help

 

yeah. People may hide/earn/play with money but economic/financial rules of the country are really too damn strict. For a common or an ordinary man, breaking these economical laws can be really dangerous.

 

Thanks man. Its an eye-opener. I was blaming the government too with out knowing the facts. You just made sure that assumption are the facts for fools.

 

you didn't get me. I said its just a way for the government to extort bribe money from a private company. You might only believe when you hear it from someone like Wikileaks though.

 

A perfectly valid point imo. Maybe a court petition will do us good. Any reputed person here willing to take RBI to the court? Many people (myself definitely) would be willing to contribute some monies to the cause.

 

Yes i have received money yesterday in my PayPal $1200. and yet their is no any kind of prob.

 

you can report to rbi and get award point of worth 10

 

Has anybody here transferred money successfully from PayPal account to their Indian Bank account after March 1?

 

yes, I have ... 3 times.
No problem, got money within 2 working days.

 

Are there any restrictions on the amount of money being transferred to the Indian Bank Account?

 

Yes, 7 Times without any problem, last payment received on Monday.

 

If you go legally, you must be doing everything legally. Are you paying taxes for every penny you receive? BTW, I do pay taxes.

If you file a case in court, the next day your door will be knocked by Income tax, customs officers. If you are pakka in everything then there is nothing to worry. However, these officers will find something and will ask bribe.

If Paypal is strict to follow RBI guidelines (as per their last email), we have to spend money as paypal fees additionally and everything goes legal. I have no problem with their rules btw. If we pay for someone using paypal, the money will be debited from our credti card/bank. So there is will be currency conversion charges upto 3.5% in our credit card/bank. I started making payments in INR whereever it is possible.