Indian Govt. Plans for PayPal users.

The new regulations that has been applied yesterday is just the beginning of the trouble that all PayPal users will have in future. (though I understand this would help to reduce Money laundering)
Some of the plans & ideas of the Indian Govt are listed below.
1) All Indian users using PayPal will only pay through PayPal which means they get the revenues from both the party. When we pay through CC we have to pay multiple charges that we do not even understand apart from the original charges.

2) When we receive the funds into our accounts compulsorily means we have to show that in books of accounts. And then comes the income tax. Which means that we have to pay taxes while receiving or sending the payments.

3) The future would be a little troubling when Govt of India will plan for direct tax on income from PayPal. I mean the tax payment would be directly deducted before it arrives the bank. Then they will apply all kinds of additional charges which you will keep wondering what that charges are. After all those charges what we will receive is peanuts.

4) When there is a refund than we are losing extra money than the actual refund amount which is again gain for the Govt.

5) I am sure very soon they will come up with an idea of applying separate import export code for exporters using PayPal. Where the Govt will earn while applying or renewing such licenses.

6) Sales or Service tax for PayPal users depending upon the code you select while withdrawing the money. That would another pain in a** for all of us.

so far so good.. PayPal users are still spared from the loot that the corrupt Govt has done to the Indian economy. Once the above things happen, PayPal users will have no choice but to go fast as Anna Hazzare did

God please save us from these corrupt Indian Politicians.

 

But who is ready to Fast

 

1. If they implied direct tax on our income, it not only affects the PayPal users. It'll affect all the people in our country.
2. Paying through our Credit Card is really worst and it's causing lot of losses while conversion from INR to USD
3. While withdrawing amount to your bank account, they won't check all our details. They are having certain limit. If your withdrawing rate exceeds that limit, then will consider you for paying tax. It's currently 10 lacs per year.
4. The most important fact is, they wont consider our expenditure (that we are paying through our CC) , but they will consider only our income (withdrawing amount) for calculating tax. This means, according to them, whatever amount we are withdrawing is our profit. But it is not so. So you should maintain a complete details for your expenditure for facing future problems. Suppose if your income exceeds the limit, you need to show your expenditure proofs to reduce the tax amount. It's not a problem for companies but it will be a problem for individuals because no one can maintain these details.

 

Firstly: RBI is neither governed nor influenced by the politicians. What RBI has implemented may cause us some problems but its for the benefit of the country.

It is us who are corrupt and not the policy makers. We hoard the money in our Paypal accounts, use it for online purchases and never show it on our balance sheets. Isn't it fraud? Try doing this in the USA and you'll find yourself behind bars sooner than you can ever imagine.

 

@ kunalbhatia - are you on dope???

wish the swiss bank also implemented such auto withdrawal systems

 

Any official news?

 

Hi,

i think what RBI has done is for the benefit of people and the country. As money laundering has increased a lot in online business, it was essential that RBI take some steps to stop those sort of illegal things in India. Comparing to UK/US we are paying very less Tax on our income and we should be thankful that we are in India.

Proud to be an Indian
Raj

 

i think all this will be temporary

 

But corruption is very high in INDIA. They are all eating our tax money. If our tax are really used for good purpose we can pay or else, why should we ?

 

India is not a business friendly country. Thats that problem/

 

Actually its Indian Govt.

 

India is not a business friendly for indians, but friendly to foreigners

 

Does any one used ICICI CC ??? are they are charging similar fee?

 

Indian Govt. Plans for PayPal users.
Are you for real or just imagination ?

 

Are you aware of all the taxation rules that is applicable to you, because there are certain wrong statements in your post. For adsense earnings you are exempted from paying service tax, read my thread here, though Income Tax is unavoidable. Regarding paypal payments, if your product falls into the category of service then the same adsense taxation rule applies to it, get hold of a good Chartered Accountant and he / she will be able to help you in this.

 

RBI should understand that India is developing country and allow it's businesses in India to flourish.

I feel sad comparing United States with India.
Look at the United States, over 45% of people pay Income Tax [1], they have the best universities - 7 are in the Top 10 alone! [2] and whopping 139 companies in Forbes 500 [3].
Now, look at India, only 3% pay Income Tax, not a single university in Top 200 list and only 9 companies in Forbes 500 list [4].

I'm willing to pay taxes and help the government build India. But, the government needs to understand what the common PayPal user is looking for. RBI is India's Central Bank and is doing nothing to nurture businesses. They are only putting restrictions on illegal money. Putting restrictions won't solve anything. People with great minds will move to US, UK, Canada, Australia and decide to better work there...

 

No one to control the scam like 2G .But they r ready to make restriction on small marketers ....

 

ICICI is charging current conversion rate.So far good,lets see how it goes

 

So according you, PayPal want our PAN Number for show strength of their indian Users.
Can you imagine any use of PAN numebr in PayPal account?