Discussion in 'Business & Tax Advice' started by bullsbears, Aug 31, 2017.
Now it seems to be a BIG RELIEF !!
Thanks guys for spreading Information
That does sound great!
But still, we must carry on with the petition. The government must remove the need for FIRC or make the Bond bank guarantee-free. Else each of us might be liable for paying GST.
Guys. Please don't be so happy about this. I called Paypal today and yesterday. One guy (customer support executive of Paypal) told me it would be on the whole amount. Another told me they haven't decided yet.
So please, don't spread more confusion. Just wait and watch unless you can show proof. Thanks
To my understanding, paypal automatically withdraws all the payments received on a day at the end of the day. So you'll get a single UTR number for any number of payments that are received on a single day. So if a freelancer/service provider gets payments on every single day., for 30 days, he will have to pay Rs.236(200 * 18% GST) x 30 which comes around Rs.7080 or $111 + the Demand Draft Charges to get the FIRC.
Idea #1: Get an offshore stealth account with imaginary details and save all your funds on that account and send it only once per month to your own account in India and pay just Rs.236 to get the FIRC.
What are others opinion with this idea?
filed the petition, still you dont know the link its below, please go ahead file.
That is something even I thought of. But not everyone can make use of this solution.
Besides Paypal would eventually catch up with you. Highly risky! In US, they need your EIN and stuff once your annual revenue is expected to reach $20k. Without that, you won't be able to accept more payments.
The only viable and long-term solution that I can foresee is our benevolent overlords sitting in Finance Ministry understanding our community's concerns and amending the GST Act to fit in the purpose of service exporters.
That's huge fee. I think Indians will now use crypto currency most of time?
Called paypal Yesterday and somehow the call was routed to an American CS. She explicitly told that we don't have the final answer on this from RBI. After finalizing they will shoot an email to everyone. Also it will implement from Oct 2 onwards
Signed the petition..this is indeed a big blow to Indian freelancing/online marketing community. On one hand, the government wants to promote entrepreneurship and on the other hand it is close to destroying livelihoods of millions through such ill thought out measures. We are not burdening the formal job market so imagine what happens if hundreds of thousands of freelancers decide to call quits and flood the already depressing IT job market.
In my opinion, RBI should cancel automatic withdrawals for Paypal and let us decide when we want to withdraw. This way we wouldn't need to request for hundreds of FIRCs and the cost wouldn't be prohibitive for us.
Apart from freelancers, this move is catastrophic for marketers who use JVZoo like platforms to promote/sell products. Imagine selling/promoting a low-cost product ($5-10) via JVZoo which transferx instantly to Paypal which in turn auto-transfers to bank accounts. So we would not only be paying 18% GST but also Rs 200 for FIRC which would mean we would end up with nothing in our hands. Also, if the customer asks for a refund, we may very well end up paying from our pocket and actually incur a loss...
Such a sorry state of affairs....
Just read the petition and noticed this update as well, so thats some good news at least.
can you correct this statement you mean Indian business only,
I don't see no reason they can not use the built in credit card system unless it not provided to Indian use.
i completely agree with @shadowfax ...paypal should remove auto withdrawal ...let the use decides but i think its RBI who implies the rule not to keep the funds in any pal account ...not sure if auto withdrawal applies to other country as well
no matter how you look at it it coming all soon
looks like the Indian goverment itself is punishing it own people .
very sad a 3rd world country getting stuffed via there leaders very bad
I want you all to no if paypal going to add this 18% so will every other company they will follow your India tax new rules.
and it true ,small business will go down so will unregistered marketers because your need to be registered Indian gs I'd to get any money from any paying gateway.
18% tax added to sum of services.
how will you be able to knock that from the paypal/gateway customers you can not impossible ...
if it 18% monthly or weekly or even daily still cash to find ...
I am not sure how much of a difference it would make fighting this GST issue. Besides RBI is never going to change this rule, as they fear money laundering and terror funding.
You are correct, this wont help fighting the GST issue. However, if RBI removes auto-withdrawal from Paypal then it would become substantially cheaper to claim refunds.. IndianBill007 said that he would need to get 2000+ FIRCs every month which means he needs to spend over Rs 400,000 (Rs 236 for every FIRC) just to claim refunds from the government!!! If he is able to withdraw at his will say 2-4 times every month then he can claim refund by just spending Rs 400-800.. Big Difference!!!!
RBI can keep other restrictions like Indian users can't buy things from their PayPal balance, can't send money to other Indian PayPal users etc. to check money laundering..
This is fucking hell man :| not good will have to shift to some else payment method
Nothing any payment method can do about it. It's government regulation.
Anyone who could try pushing the petition through mainstream media?
The 18% tax will be on the 'Paypal Transfer Fee' and not on the incoming amount.
what does it mean? will paypal charge 18% more fe than the current rate from now?
I think there is a misunderstanding, PayPal will not charge 18% on overall charge but will charge 18% on top of its fee. Example: If you charge $100 and PayPal took a $4 cut out of it, thus from 2nd October 2017 PayPal will charge the 18% on the fee of $4.00.
I got this info. from PayPal customer service, I guess we would need to wait just to be 100% sure.
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