Consulted my CA, he told me that it is not necessary to have a IEC if you are not exporting or importing any physical stuffs and the second thing he told me that it is legal if you are withdrawing funds from paypal via xoom provided its should directly get deposited to bank account and must be in INR. Any feedback?
Is IEC Code is must for receiving USD Cheques, money through xoom and Escrow Money ...? All the posts are almost 2 years old posts .. so i wanna know present rules .... Id receiving money through xoom as instant pickup is illegal for business deals ? and one more thing is if receiving money through xoom for a business issues is illegal ... why there is a section called " create payment buttons - Create buttons for your web site, auction listing, or email invoices to receive Xoom payments from your buyers " .... Is current business account is must to apply for an IEC Code ? Please anyone clear my doubts ... Thanks as advance..
Open a Current account. Get IEC code. Its legal... to get USD payment via cheque. But Still not sured its legal or not take payment via paypal or WU or Xoom or escrow...
You are saying if a cheque from foriegn country is recieved. Then the income tax is taken from it. That means its safe to recieve PayPal Cheques with no IEC. What if we use the Paypal to bank option? Does that takes the income tax too? and we are safe having no IEC?
Plz reply anyone to this questions please ... Is IEC Code is must for receiving USD Cheques, money through xoom and Escrow Money ...? All the posts are almost 2 years old posts .. so i wanna know present rules .... Id receiving money through xoom as instant pickup is illegal for business deals ? and one more thing is if receiving money through xoom for a business issues is illegal ... why there is a section called " create payment buttons - Create buttons for your web site, auction listing, or email invoices to receive Xoom payments from your buyers " .... Is current business account is must to apply for an IEC Code ? Please anyone clear my doubts ... Thanks as advance..
Sounds good and all but the part about sending money via Western union or any other service being illegal ...thats outright ridiculous. RBI would never allow WU to run if they had a problem with that. The only thing they control with WU is sending and none of these providers including indian banks allow sending money from india without the paper work ( like you son studying in the US, or something similar) . But the fact that western union is doing business in india allows its use . And frankly FEMA issues for $500- $1000 sounds quite far fetched. I have a US paypal was in my name now its a business account. Xoom guys told me initially that they dont allow business accounts , but i have been using for over a year now sending to my icici . I dont even get confirmation calls anymore .They just deposit. And an IEC might be a good idea , but for freelancing again, first u need to be registered as a proprietor or have a company registered, so small timers doing a project a week , they arent really what the anybody is concerned about RBI is only worried about money laundering and big amounts. Definately not a couple of thousand dollars a month. But thanks for your post ,it was quite informative.
Agreed The information which I got from C.A's , RBI website, some online friends.. I found that its illegal to get a single dollar without I/E code. Also, we can't take any payment from abroad via Paypal, WU, Xoom... The only best way is to Open a current account on Sole propertier name, Apply for IE code. And Get all payments vis usd cheque. Current/Ac Opening : Rs. 10,000(Acc to bank) IE code : 1000(self, Can't say when you got IE) or 2000 to 3000 (via C.A., Will get in week) Its all.... So, Just need is IE code which is not much costly. So, why we should take risk for just Rs.1k or 3k. Its one time cost. Be Tension free for life. C/A money is yours. So, highly advised to all webmasters. You should have IE code. And for Paypal payments transfer to bank.. I am still searching Exact rule... I am waiting for Budget.. Heard from my CA... Some rules are going to be change... So, lets c what happened.. Good Luck
Receiving funds directly to the bank is allowed and unless the annual turnover is less than certain limits ($25000 I think for the IT exports) you do not need an IEC. On the other hand getting IEC is quite simple and after you've IEC and current bank account, you can do your business legally and without any tension.
Very informative abhishek. Currently i'm having a very small adsense check once or twice an year and never used money transfer for india. I'll do it once i cross may be 1000$ a year. thanks again.
Thats STPI. You can go for a 100% EOU scheme which does not impose that 5 crores stuff on you. I run a 100%EOU for the last 2yrs and the 100% tax rebates are applicable under section 10A till 2009. The EXIM policy will be revised in 2009 and whether the same benefits remain or does not remain is a question. For those still wondering about the valid method of receiving payments, they are as follows: #1: A cheque in the name of the IEC code holder in a convertible foreign currency. #2: A bank-wire in the name of the IEC code holder. Paypal funds transfer to your bank account is processed as INRs and does not prove a valid international business transaction. The rest procedures like XOOM etc are all for personal money transfers even if they give a cheque in your name, that will be in INRs. Remember just one point: Whatever the method is you should receive the amount in convertible foreign currency that your bank will process and credit an equivalent INR to your account. If you are receiving otherwise, its fine as long as you pay your tax.
If you have not paid his fees, dont pay it yet and tell him to read the "Handbook of EXIM Policy" - it costs Rs 375/-.
If you pay tax in india honestly you wont earn anything. So I am ready to go to Jail and would eat stuff there. Govt of india is for SC/ST and Backward only. So I have decided not to pay more taxes
hahahaha... Very Nice info " hexadesigns" One Ques. : Is it legal to take payment in our current account by paypal direct transfer? If yes how we can show that transaction? Which law or agreement shows that it is legal. Please if you kmow any site post here.