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IEC in India (Required For Paypal)

Discussion in 'PayPal' started by adithya, Feb 26, 2010.

  1. COBSolutions

    COBSolutions Well-Known Member

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    #101
    Well it is not that easy dear
    First of all, dont trust government websites, they might not have been updated since its original designing
    The charges now are not Rs.250 it is Rs1000/-
    And plue IEC code is given to dealers importing exporting goods, not services, so to make them understand that we sell services is going to be another uphill task as they will have give the number under Miscellaneous head and not under any category heads (which exists for different types of goods like electronics, leather etc)
    So it is going to be a long few months and hot summer............
     
    COBSolutions, Feb 27, 2010 IP
  2. mac83

    mac83 Active Member

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    #102
    IEC code is required if your gross exports is greater then 1 lakh or a single invoice is greater then 25000.
     
    mac83, Feb 27, 2010 IP
  3. Balur

    Balur Peon

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    #103
    In India there is a specific restriction that without obtaining the IEC No. Individual and companies are barred from Import/Export of Goods and services.

    All the websites in search engines gives current charges as Rupees 250/-

    Rs.1,000/- was past charges.

    It will not take beyond 4 weeks as ICE comes through speed post and you can check the status online.

    Don't panic, Be brave.:)
     
    Balur, Feb 27, 2010 IP
  4. COBSolutions

    COBSolutions Well-Known Member

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    #104
    First of all you have to see why we have to take IEC code, because paypal needs it to transfer money, it is not about taxation, the taxation rules remains same, you dont have to pay for foreign remittances till some amount (not sure about the limit)

    Not an issue, you need to make a DD for Rs1000/- addressing your nearest DGFT officer, along with your bankers certificate, can be a savings or current (not necessarily current)

    Yes, individuals can also apply but you will have to give a address for your office, that can be your home address also, since you are an individual then your business is the sole proprietorship concern and you can register with them accordingly, you don't have to have a company to get the IEC code.

    You may be right, but paypal needs it to send you money since RBI is insisting for it, but you will pay tax only for amount exceeding those limits, but IEC code can be gotten by anyone who applies for it
     
    COBSolutions, Feb 27, 2010 IP
  5. mac83

    mac83 Active Member

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    #105
    1. Online IEC number was fast, but DGFT disabled online IEC service a few months back.
    2. The procedure is very simple. (Also there are lot of agents outside DGFT office. But when I got my IEC number 5 months back, I did all myself and got the same in 8 days. It's very easy and simple form)

    What you need to do:

    1. Take printout of the Application form and fill two copies of the same.
    2. Take a copy of your PAN (Self attested)
    3. Ask yr bank for a Bankers Certificate (Tell them you need for DGFT and they have that format for it.)
    4. Make sure the Bankers cetificate is signed and stamped by yr bank. (sometimes these guys forget and we need to go back to get it signed.)
    5. Make a cover letter for the grant of IEC.
    6. Make a demand draft of Rs.250. Also fill the details of D.D. in the IEC application mentioned in point 1 above.
    7. Get a 40X15 cm Envelope and affix a rs.25 postal stamp for Registered post and Rs.100 for speed post with your address. (DGFT will send your IEC in this envelope).

    Put all the above documents in a nice folder and submit them to DGFT office manually or post them.
     
    Last edited: Feb 27, 2010
    mac83, Feb 27, 2010 IP
  6. technojuice

    technojuice Peon

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  7. pathiks

    pathiks Peon

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    #107
    pathiks, Feb 27, 2010 IP
  8. neovision

    neovision Peon

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    #108
    It means forcibly we will have to open up a company :D lol
     
    neovision, Feb 27, 2010 IP
  9. pathiks

    pathiks Peon

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    #109
    Haha! Yep. But there is no procedure required to open up a proprietership firm.
     
    pathiks, Feb 27, 2010 IP
  10. neovision

    neovision Peon

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    #110
    So it means, every Paypal user in India will own a company. Now Paypal should change it's tagline for India....Use something like this for advertising in India "Sign Up for Paypal, Get you Own Company Free"
     
    neovision, Feb 27, 2010 IP
  11. OldEgold

    OldEgold Peon

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    #111
    Hello

    i assure , dont worry about Export code ,

    as they know their business on india based on Service and , Individual , or Freelancers ,


    so they will classified the nature of business , and there are such default Export code . which we need to enter


    simple ( just assumptioN)
     
    OldEgold, Feb 27, 2010 IP
  12. rahul7281

    rahul7281 Peon

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    #112
    but i dont want to open a company:confused:
     
    rahul7281, Feb 27, 2010 IP
  13. neovision

    neovision Peon

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    #113
    Well you do not need to, but legally you will be an owner of a company
     
    neovision, Feb 27, 2010 IP
  14. neovision

    neovision Peon

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    #114
    Well, wish it could be as simple as you show here
     
    neovision, Feb 27, 2010 IP
  15. tanha_dil

    tanha_dil Peon

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    #115
    i dont think so , they have clearly stated that personal remittance to INDIA is still suspended and they dont have any specific approval for it with RBI . At the moment its good for PayPal that they resurrected the withdrawl issue with INDIAN banks by adding exporter code system . In this whole patch up i can clearly see what paypal is upto . As you know ebay is spreading in INDIA i think they just wanna restore bank withdrawls so that it dont hampers their real business while keeping the other types of remittance apart.
     
    tanha_dil, Feb 27, 2010 IP
  16. olddocks

    olddocks Notable Member

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    #116
    i think paypal will insist on IEC code (aka Export code) for business paypal account holders and ebay sellers. If they need it for personal or premier account, it would be a bit difficult for us.

    still the RBI directive not helpful for our businesses.
     
    olddocks, Feb 27, 2010 IP
  17. paulnet

    paulnet Active Member

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    #117
    Well applying for IEC code is not the issue here. The real issue is other paperwork involved after applying ie. unneccessry annual paperwork required for IEC if you are small service provider. It simply kills the service professionals. Is it logical or makes sense if we receive payment of just $50 or other small amounts and mention IEC code everytime the payment is done. What these babus see is if you are getting dollars then you must be rich man!! I don't know whats going on their heads and making our life hell.
     
    paulnet, Feb 27, 2010 IP
  18. rathin

    rathin Peon

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    #118
    i think they wont going to provide it we need to get it
     
    rathin, Feb 27, 2010 IP
  19. platinumseo

    platinumseo Peon

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    #119
    You have to apply and get a IEC code. Here is something I read on another forum on how to apply for IEC code:
    moneyfellas.com/forums/showthread.php?t=241
     
    platinumseo, Feb 27, 2010 IP
  20. rahul7281

    rahul7281 Peon

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    #120
    yeah right man...this is a silly move....i will definatly move out of paypal if they make export code complusary....i would rely on bank wires instead...
     
    rahul7281, Feb 27, 2010 IP