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WTF is this export related payments and purpose code? Gaypal.

Discussion in 'Business & Tax Advice' started by Evan Foster, Oct 14, 2011.

  1. Evan Foster

    Evan Foster Junior Member

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    Nobody is exporting any shit out of India then why gaypal is asking purpose code in relation to export related payments????? :(

    Its all freelancing work and on internet.

    Seems they want to export some ass cut in pieces to be sent to CEO of gaypal and then declare purpose.

    Explanation appreciated.Thanks


     
  2. Evan Foster

    Evan Foster Junior Member

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    bump...
     
  3. Jeevs

    Jeevs Supreme Member

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    India exports a MAJOR amount of products worldwide buddy...and its not just freelancers at the other end of the computer...have a look at IM with a bigger vision.
     
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  4. Evan Foster

    Evan Foster Junior Member

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    Ok Good, But what is an Indian computer operator exporting to USA in return of paypal money in his bank?

    bugging my head; Sorry

    I understand that freelancer is not exporting his body.
     
  5. Kickflip

    Kickflip BANNED BANNED

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    This has nothing to do with Paypal. Why are you getting angry with them and insulting them? They clearly state it is to do with RBI (Royal Bank of India) guidelines imposed on them.

    Code:
    http://www.rbi.org.in/upload/content/images/guidelines.html
    I just Googled what you typed in here and the first result gave me step by step instructions to update the purpose code.

    Step 1: Log in to your PayPal account.

    Step 2: Click on Profile on top of the page.

    Step 3: Click on My Money under My Profile.

    Step 4: Click on Add next to Purpose Code. Read the instructions and enter your information on subsequent pages.
     
  6. Jeevs

    Jeevs Supreme Member

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    Its not just "computer" which connects us to International business.Think of a small businessman in India exporting local spices to a UK trader and having the transaction done via Paypal.
     
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  7. Evan Foster

    Evan Foster Junior Member

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    Ok now i got you mr. jeevs.


    :) what purpose code should an freelancer/IMer select on paypal page ?


    Deserves a REp.
     
    Last edited: Oct 14, 2011
  8. Jeevs

    Jeevs Supreme Member

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    Its "Reserve Bank Of India" :D Nothing is royal in a democratic country ;)

    And yes all the guidelines are imposed by RBI on paypal...just because they don't want another 1.4 trillion dollars as a black money...new guidelines are linked with something called "Tax"
     
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  9. Jeevs

    Jeevs Supreme Member

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    You are bound to select the same "Import Export" ;) No other option suites...I've selected the same and having no problems at all...go ahead
     
  10. Kickflip

    Kickflip BANNED BANNED

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    Well in Canada we call everything Royal and we have a Queen on our money but we use elected officials. We are a strange country...
     
  11. kaif0346

    kaif0346 Power Member

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    I just recommend avoid gaypal they rob your money without any reason I have lost my two month's earning in minuts and now I am empty :(
     
  12. Evan Foster

    Evan Foster Junior Member

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    ok,

    So Regarding "tax"

    do they(RBI) treat a freelancer as company and ask for more than 30%(Max for individual) tax on all income.They may treat all paypal receivers as company and press them to pay extra cut.

    How do you manage taxes on your income. no personal just a question. :)
     
  13. Jeevs

    Jeevs Supreme Member

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    Huge and Chilling too :D And bit more expensive than USA too if m not wrong...
     
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  14. Evan Foster

    Evan Foster Junior Member

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    And then what's alternate

    alertpay?

    do you know they digest big payments some time. Not to mention they charge double/triple transfer fee as compared to gaypal. I think we pay for their wives beauty expenses.

    I tried alertpay once and my brand new never used credit card was charged with $9k by alertpay and note was some kind of Viagra shit.
     
  15. Kickflip

    Kickflip BANNED BANNED

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    Yes just a bit more expensive like 20% but we have free hospitals. :)

    The maximum will still be 30% because you are not an incorporated business.

    But maybe you have to pay 30% on ALL earnings, I am not 100% sure how it is in India. Hopefully someone can also clarify a bit more.
     
  16. Jeevs

    Jeevs Supreme Member

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    True...sometimes they will leave you without a clue....this is what happens when you don't have anyone to compete you...

    Remember the money gets withdrawn to your account automatically??Now lets have some reverse gears...they (RBI) cut a share on every amount withdrawn in your account,you need a bank account for that "linked" with your Paypal account,so whatever you earn is now counted in "National Income"... they ask to attach PAN card also,income less than $1.2k/year is taxfree if my numbers are correct,majority of the people (using paypal) are making more than that..may be they have done some major calculations to calculate the amount of "cut" they are getting as a "Tax"... Again...have a look at it with a bigger vision...foreign exchange,black money and so on!!!
     
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  17. Evan Foster

    Evan Foster Junior Member

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    Jeevs

    I am satisfied.
     
  18. Jeevs

    Jeevs Supreme Member

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    Yeah sorry forgot to mention that ;) But the auto Insurance is like $230/month while in USA its like $30?? My numbers are old :D sorry for that...Overall I think its bit more than 20% ;) 35-40% I would say.... :) the cold makes it 40% more difficult to live :D But nice govt. facilities though...govt. or royal queen's?? lol :D
     
  19. sherinl

    sherinl Newbie

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    Hi .. If am not wrong, rendering service is also categorized under Import / Export.

    Having that said, for Purpose Code ... there are a list of options to choose from .. you can choose the one that matches your profile .. like writing ... or whatever .. the code is assigned automatically.

    Then PAN number .. that you shud know I guess ..

    Acc to RBI, they want Indian accts to enter Bank Acct (Indian), CC, PAN and Purpose Code ...

    For purpose code, PP never gave helpful info .. however, managed to get around it.

    Hope it helps.

    Best Regards
     
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  20. Jeevs

    Jeevs Supreme Member

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    sure? ;)