IEC in India (Required For Paypal)

we can get Import export code even as an individual.Lets hope for some good news on 1st march

 

Anyone paying 6 lacs as taxes against your income of 20-25 lacs ?

I want to know.

 

If u earn that much u should consult some CA i am sure there are some tax saving measures

 

Famous blogger Amit has given all details of it ..
http://www.labnol.org/india/exporter-code-for-paypal-payments/12866/

 

I know few agents in Hyderabad who can get the IEC easily.
If anybody needs help, you can buzz me on.

You also need a company registration, VAT registration, company PAN number to apply for an IEC.

 

Hi Guys,

Here is a very useful link for ALL us Service Providers - We fall under GATS (General Agreement on Trade in Services).

IEC would be only a code which would be used by RBI to track the influx of money.

General Agreement on Trade in Services

http://commerce.nic.in/trade/international_trade_tis_gaitis.asp

as we all fall under GATS act of World Trade Organisation, we would need to register for a IEC code independent of whether we are individual service provider or a big service provider (established firms).

Since our PAN numbers would be needed for registration with GATS, govt would not have a better grip and tracking on the inflow of income.

This would also mean that we will have to pay our Income taxes if we qualify for it. IT department would have direct access to our income records on PayPal due to this IEC code.

 

that is sad news , individuals cannot get IEC code, u have to be company a/c , proprietorship will do too, you need 2 letter heads with company stamp and yr signature verified by yr manager , one dd of 250 inr , pan card copy , 2 self photos , and head to the nearest DGFT branch in yr city ,catch any agent outside , hand him 1000 bucks and u can have it the same day
carry 3 months bank statement not a must do but can be helpful btw u need a current a/c not a savings for this, on positive side the cash now is export remittance and is can be withdrawn from pp in USD too and is income tax exempt, you can keep 75% of it in foreign currency in yr a/c , this is the export procedure here , but you will have to fill returns now and show invoices , dunno how you will do that !! for services esp. and yeah if better be carefull cause now FEMA is involved and knock on yr door any time

 

whats the procedure to obtain IEC code if we do not have a company or buisness?
I am student.
Can anyone tell me what to do?

 

wait till 1st march...PP will uopdate..

 

Your are right, FEMA act will come into force now.
Also if this comes under the Import/Export act, then you would be exporting your services wherein you would be able to get good subsidies from Govt. of India, as the Govt. wants foreign currency to come in.

 

Our governments needs so many identification proofs - PAN Card, Passport and now IEC code. There's also new UID numbers to be introduced in 2011.

 

hahaha, its the same in every country nihang. Only thing is our country wakes up late ;-)

 

i am totally confused

I know that paypal business account holders can easily get IEC code,

* what about premier and personal account holders? Can they withdraw to their bank account.
* i heard that IEC code can only be given to companies/proprietorship, not for individuals.
* Is current account must to get IEC code for Individuals?

 

For personal account holders paypal is still trying to get things working with RBI, so i think it would take some more time.
Just wait till the next update from them.

 

I was thinking the same as paypal plans to resolve the problem first for ebay sellers and paypal business account holders. I am sure that over 80% of paypal users in India use personal or premier accounts, for freelancing. It would be severe blow for all of us. Looks like the money will be stuck forever.

 

Yes, almost all the Indian freelancers have a personal account at paypal and paypal cannot think of losing their majority clients so they will surely sort it out at the earliest.
Just keep calm my friend!
Say "aaal eeez well"

 

Therefore, the requirement to apply for and obtain IEC Number is not applicable to import and export of
services
or to
electronic files transmitted from India to abroad via internet
, as per the requirement of Section 7 of the Foreign Trade (Development and Regulation) Act, 1992. But, there is a recommendation to include “services” too into the ambit of the said Act. The proposed amendment is kept in abeyance due to the objections from Finance Ministry. Once “services” too are brought into the ambit of the said Act, every freelancer perform services to a foreign client would be exporting it and thus attracting the provisions of the said Act. In such a case, he/she should apply for and obtain the IEC Number.

Highlighted in Red , So freelancer has to apply for IEC , thats what i understand from the document link on scribdb which raj provided

 

yeah, i sifted through the default IEC codes for goods and services, but these kind of services are not listed there which means we will have to manually get a IEC code from DGFT