Paypal FAQs Answered For Users In India

Yes you may be correct as they would not be offering any thing with knowing any thing and also tell how to submit tax returns for paypal

 

Since earnings through paypal are under foreign exchange. So mostly they will not be taxed. However there are other factors to consider. The best ones to guide you will be the forex dept. of your bank or your C.A.

 

Yeh. It iz still illegal to withdraw anything from any foreign entity with a debit card. You can only use checks or wire transfer to recieve to same.

 

Will you please point me to a relaible article that verifies this. That will be a great help for me.

Thanks
bnts

 

Thanks for this link

Been doing a bit of research on this from yesterday. By now I have realized that an Indian can "have a foreign currency account in India or with a bank overseas, and can even obtain ICCs (International Credit Card) of overseas banks and reputed agencies".

I am yet to get reliable answers to some other questions though...

Does that include withrawing money using a Credit Card issued by Foreign bank?

Thanks.

 

I dont think you have understood. You can have a foreign bank account but you have to notify RBI before opening it (by bank account I mean regular savings account). However its legal to hold a trading account like Etrade without notification. Also you can accept credit card payment from people through paypal, but to withdraw the balance in Indian rupees you have to use bank transfer or cheque. You cannot use credit card or debit card or western union because it is illegal to use any instrument by which you get direct cash in your hand without any bank or the RBI knowing about it. This is because it violates both the FEMA and anti money-laundering acts of the govt. of India and can land you in JAIL! Its an unbailable offence.

 

If receiving moey throgh Western Union is illegal then why our Govt promoting it. Western Union is available in almost every post office in india, even in villages.

 

One more question. When you withdraw from xoom.com the money does actually comes through bank. As all the cash pickup points are branches of different banks.

Does that mean i can use it to withdraw my money legally??

 

According To RBI Rules Western Union can only be used to recieve money from relatives abroad.
IT can not be used for commercial purspose.

 

I don't think so. I think the money that is sent to only those branches where Forex is available.

I have checked with the pickup locations in my area and all are authorised dealers.

Even if i'm wrong in this still can't i assume that if the branch is approved then it could be legal. There is a chance but.........

Still there is a grey area here. The money is also sent through courier and something called "Instant Cash"

Still want to know, if they are so illegal how and why do they operate.

 

I don't think so. I think the money that is sent to only those branches where Forex is available.

I have checked with the pickup locations in my area and all are authorised dealers.

Even if i'm wrong in this still can't i assume that if the branch is approved then it could be legal. There is a chance but.........

 

I was talking about Xoom.com. The bank branches of pickup locations of Xoom.com

 

Western Union only pays in INR

 

That's a good reply..thanks CrazyBoy But I am still not able to find any article stating that officially in the RBI websites etc. Maybe I am still to search a little bit more Anyway, I got you but I will always appreciate if anyone provide an article wherein it is officially mentioned...

Thanks.

 

Why dont you just ask your lawyer?

 

Lol..I talked with a Taxation Professor here and also with an HDFC Bank employee, but they said it should be legal... I will email RBI as well on this...If I get their reply, I sure will post here..

Cheers,
bnts

 

GOOD NEWS FOR THE INDIANS- PAYPAL is going to start a center at chennai. See the details in this thread-
http://forums.digitalpoint.com/showthread.php?t=218801&goto=newpost

 

Stop Promoting This is useless..

Do read the Topic when u post... They will not come to Help INDIAN'S they will come here to HIRE INDIAN PEOPLE AT 10-12K and support the World.. IT IS ONLY A CALL CENTER.. nOTHING ELSE....

That support center will not help us improve the current situtaion...
I don't know why people do not understand Silly things... Please read the NEWS carefully...

 

I think they will also deliver payments from there in chennai

But Billamandir say me How did you have the IEC code and other things

 

they are not supportive man...
the iec code office.. I am still confirming this with my consultant.. Actually it might have a Tax involved.. And i have to take a good and fair decision before i make any legal step.

I know they will not.. Even then u have to deal with horror stories like all face..Even it is a Localized country..
Paypal was mainly established for the US... Now they are expanding..
Do check for ur self When they come..
Do u think they will appoint 150 people just for issueing Cheques ? Lol.
After all it is Development.. Only for them..