India, Russia, Paypal: tax query

Discussion in 'PayPal' started by pbvytt, Apr 7, 2012.

  1. #1
    Hello.
    I'm going to sell some items on Ebay and withdraw the earnings to an Indian bank account, then transfer it to a Russian bank account (or just somehow transfer them to Russia). Which country will I have to pay taxes to (if I have to)?

    The scheme:
    1. Person 1 (Russia) sells the paintings, the money is transfered to Person 2's paypal account
    2. Person 2 (a Russian citizen in India) withdraws the money to an Indian bank account, then either withdraws it from the account and puts it to a Russian bank account or somehow transfers the money to Russia (haven't worked out this step yet - your advices would be welcome).
    3. Person 3 withdraws/receives the money in Russia and gives it to Person 1.
    4. Everyone is happy.
    P.S. I am Person 3 and I'm not getting a single dollar out of it, I just want to help my friend.
     
    pbvytt, Apr 7, 2012 IP
  2. getlostrentals

    getlostrentals Peon

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    #2
    this has nothing to do with paypal it has to do with the country that you are a resident of
     
    getlostrentals, Apr 11, 2012 IP
  3. pbvytt

    pbvytt Peon

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    #3
    hmm, guess you're right. My mistake.
     
    pbvytt, Apr 11, 2012 IP
  4. qualitylinktrader

    qualitylinktrader Greenhorn

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    #4
    Hi,

    Tax applies to the receiver of Money unless there is some agreement made between the owner of money and receiver. If there is no such agreement, the receiver is considered to be the owner of the money and the money will be counted as his income. The person who receives the income has to follow the Tax rules in the country of residence because that is where his income is generated.
     
    qualitylinktrader, Sep 11, 2012 IP