I have seen a lot of threads about this and I was successful in sending money to India by listing the process as a purchase of a service since personal payments such as a gift will not work. I am from the United States and was not charged any extra for the payment
Paypal payments are never free until its a gift payment. And since yours was not there is a fee required. They don't take any fee extra from balance but they cut it from what you send. Like if you send $10 to anyone they will give only $9.31 to receiver and keep $0.69 as fee.
Yes paypal fee will be detected in sellers payment for indian paypal users. Only mass payment has no fees.