Paypal India-Refund Issue after GST

[super11]

Straight to the point:

After the GST thing, I have noticed one thing. Let's say, if I receive a payment of $20 and that's the only payment for the day on my account. For some reasons, if I choose to refund the amt to the person who sent the money, paypal states" insufficient balance" which was never the case before.

Bottom line- If you choose to refund the money, although paypal will refund their fees, they will keep the GST deducted money with them.

Am I missing something? Has anyone else experienced this too?

Thanks for the comments.

 

[IMKage]

Straight to the point:

After the GST thing, I have noticed one thing. Let's say, if I receive a payment of $20 and that's the only payment for the day on my account. For some reasons, if I choose to refund the amt to the person who sent the money, paypal states" insufficient balance" which was never the case before.

Bottom line- If you choose to refund the money, although paypal will refund their fees, they will keep the GST deducted money with them.

Am I missing something? Has anyone else experienced this too?

Thanks for the comments.

I dont understand paypal gst thing.. if someone would be kind enough to explain to me.
Paypal says gst is applied only on paypal fees and not on purchase amount.
I don't understand this statement, if let's say i get 100$ in paypal. Then my net money would be 100$ - 18% stupid gst = 82$? Is that so? Or something else. Sorry i am a noob in this field

 

[Innovatorz]

I dont understand paypal gst thing.. if someone would be kind enough to explain to me.
Paypal says gst is applied only on paypal fees and not on purchase amount.
I don't understand this statement, if let's say i get 100$ in paypal. Then my net money would be 100$ - 18% stupid gst = 82$? Is that so? Or something else. Sorry i am a noob in this field

No. Your net money would be 100 - 4.4 - (4.4*0.18) - 0.3. It's an odd calculation.

 

[HoNeYBiRD]

I dont understand paypal gst thing.. if someone would be kind enough to explain to me.
Paypal says gst is applied only on paypal fees and not on purchase amount.
I don't understand this statement, if let's say i get 100$ in paypal. Then my net money would be 100$ - 18% stupid gst = 82$? Is that so? Or something else. Sorry i am a noob in this field

If it only applies to the PayPal fees, why are you applying it to the whole amount?

 

[Innovatorz]

Straight to the point:

After the GST thing, I have noticed one thing. Let's say, if I receive a payment of $20 and that's the only payment for the day on my account. For some reasons, if I choose to refund the amt to the person who sent the money, paypal states" insufficient balance" which was never the case before.

Bottom line- If you choose to refund the money, although paypal will refund their fees, they will keep the GST deducted money with them.

Am I missing something? Has anyone else experienced this too?

Thanks for the comments.

You need to have a valid source of payments for Paypal even for refunds. Credit card won't do, and your account will have a negative balance. I don't know how they are doing after GST implementation, but that was the norm before.

So, if you don't have a cc linked, and no balance in PP account, it'd raise that flag.

 

[IMKage]

No. Your net money would be 100 - 4.4 - (4.4*0.18) - 0.3. It's an odd calculation.

If it only applies to the PayPal fees, why are you applying it to the whole amount?

Ahh ok ok thanks for explaining, this is fine.
One more thing guys, what would happen if i withdraw the money to my bank account, will government come around to snatch 18%

 

[Intexam]

Ahh ok ok thanks for explaining, this is fine.
One more thing guys, what would happen if i withdraw the money to my bank account, will government come around to snatch 18%

No that is your income. GST has been already applied.
The rest is your income. It will be taxed only if you fall in one of the slabs of Income Tax.

 

[anthrax2014]

Mate.i think if u are regularly reciving the business payment from paypal then better get a GST number registered and u can take CENVAT of this amount...

This is only good for those who are earning decent money bcz u will have to file all those return which is pain in the ass

 

[IMKage]

No that is your income. GST has been already applied.
The rest is your income. It will be taxed only if you fall in one of the slabs of Income Tax.

Ok haha i will make sure to not let income tax come around

 

[Guestwriting]

Guys, you didn't get his point.

Bottom line- If you choose to refund the money, although paypal will refund their fees, they will keep the GST deducted money with them.

Before GST,

While receiving money ( Your money - Paypal fees = Balance )
While refunding money ( Client money + Paypal fees = Full refund ) No loss, No gain policy.

After GST,

While receiving money ( Your money - Paypal fees - GST = Balance ) GST fee is returned to the government.
While refunding money ( Client money + Paypal fees + GST = loss for seller ) GST fee is provided by the seller.

 

[sammydic]

I feel like that you can only take tax when you provide some services. And fee is kept by Paypal and taxes are paid to government. So in no case they can keep money in name of tax.

 

[Innovatorz]

Guys, you didn't get his point.



Before GST,

While receiving money ( Your money - Paypal fees = Balance )
While refunding money ( Client money + Paypal fees = Full refund ) No loss, No gain policy.

After GST,

While receiving money ( Your money - Paypal fees - GST = Balance ) GST fee is returned to the government.
While refunding money ( Client money + Paypal fees + GST = loss for seller ) GST fee is provided by the seller.

Yes. I got that. At the end of the day you cannot do anything about it, can you?

 

[Intexam]

Yes. I got that. At the end of the day you cannot do anything about it, can you?

You're exporting your service and exports are not taxed in India. That is why you can claim the taxed money as input credit.

Let's say you paid around $50 as GST for your export services then you can claim that money back.

However you'll have to fill up the form FIRC (Foreign Inward Remittance Certificate ) too.

 

[CuriousMe :)]

Fuck all that shit. Suck it up and pay the damnguy.
Once you have a decent stable income, register an offshore company. 0% tax baby. BVI is the best place. You can also register a bank account in Hong Kong, Singapore etc.

 

[lindamarry]

Paypal Now takin their GST from everyone. Even its US OR Indian Account. They have changed their policy.

 

[Innovatorz]

Paypal Now takin their GST from everyone. Even its US OR Indian Account. They have changed their policy.

Really? Please don't tell me you opened an US account and linked an Indian bank accpunt to it?

 

[lindamarry]

Really? Please don't tell me you opened an US account and linked an Indian bank accpunt to it?

Lolz, I am not telling you and I am know that we can't link Indian Bank account to US Paypal account

 

[Intexam]

This is why I hate idiots. First know what FIRC is for, how and why it is submitted, then comment please. It's getting ridiculous.

FIRC is a documented proof for all the payments which are entering India from foreign countries. It is necessary.

Check the link of PayPal :
https://www.paypal.com/in/webapps/mpp/firc-certificate

 

[Intexam]

Fuck all that shit. Suck it up and pay the damnguy.
Once you have a decent stable income, register an offshore company. 0% tax baby. BVI is the best place. You can also register a bank account in Hong Kong, Singapore etc.

Sorry to say but tax evasion is illegal.

 

[CuriousMe :)]

Sorry to say but tax evasion is illegal.

Some of the biggest corporations in the world are registered in tax havens.