Paypal's new export policy for India.

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mndar

mndar

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I received an email from Paypal today stating their new policies regarding export of goods and services from India.

• Any proceeds or earnings received into your PayPal account from the export of goods and services should be withdrawn to your bank account within 30 days.

• While making the withdrawal please make sure you select the purpose code that best fits your business.

• Any proceeds or earnings received into your PayPal account from the export of goods and services may only be withdrawn to your bank account in India. This received amount cannot be reused for making purchases.

• If you would like to make purchases on any website that accepts PayPal, you can continue to use any credit card issued by a bank in India.

The 2nd is fine but the 1st and 3rd really suck. What do you guys think?
 
Ohh. these many chamges, and I was gonna link my credit card to Paypal soon../

Goch, .../

Thanks for the info though, buddy!!
 
That really sucks! :(

3rd point really sucks. But anyway how will they know whether we received the money for export of goods/services? The payment can be from a friend too rt?
 
varkey said:
But anyway how will they know whether we received the money for export of goods/services? The payment can be from a friend too rt?
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I guess they must be having a tie up with Indian Authorities wherein Paypal is obliged to reveal account details of any Indian citizen. I'm not sure if Paypal's privacy policy permits this but they are free to change it whenever they want, so there is nothing we can do about it.

I guess they have brought in this rule just to bring in accountability for the money earned by people living in India. This is fine but not being able to use that money directly for online purchases is unfair because you then have to pay using your Indian credit card which attracts currency conversion charges plus some other taxes.

And this currency conversion generally happens at a rate little higher than the actual market rate. Like if the dollar rate is 49, the conversion is done at 51 or 52. This is totally unfair.

I would be fine with the I-T department asking me for a statement of my Paypal account.
 
Well it is unfair, but thats the only way they can keep track of foreign currency coming in and going out. I think thats why they implemented the points, so that RBI knows how much foreign currency is being traded.
 
Superfrag said:
Well it is unfair, but thats the only way they can keep track of foreign currency coming in and going out. I think thats why they implemented the points, so that RBI knows how much foreign currency is being traded.
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And why not other countries have implemented such policies then? Thing is even if there are not such limitations it can still be tracked if required through the banks. So it just doesn't really make any sense.

The new policy states that we cannot use that money for purchase. But we can sure transfer it from one account to another (You can transfer paypal-paypal. I just did today) which is what people do to buy/sell a service in the online world! We might not be able to make payment to companies but I think that constitutes a small proportion.

Consider this example, I received $200 from a company as my commission. I transferred $150 to a person from whom I bought various services. Withdrawn the rest $50 to my account stating I earned it for my service. Now that would mean I earned just $50 and only that $50 is taxable! What about the rest $150 then?

IMO, although the motive behind all this might be good, what RBI has done is pretty pointless! :no:
 
amol_cool said:
And why not other countries have implemented such policies then? Thing is even if there are not such limitations it can still be tracked if required through the banks. So it just doesn't really make any sense.

The new policy states that we cannot use that money for purchase. But we can sure transfer it from one account to another (You can transfer paypal-paypal. I just did today) which is what people do to buy/sell a service in the online world! We might not be able to make payment to companies but I think that constitutes a small proportion.

Consider this example, I received $200 from a company as my commission. I transferred $150 to a person from whom I bought various services. Withdrawn the rest $50 to my account stating I earned it for my service. Now that would mean I earned just $50 and only that $50 is taxable! What about the rest $150 then?

IMO, although the motive behind all this might be good, what RBI has done is pretty pointless! :no:
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Other countries don't have such policy's because to be a verified PayPal user, you HAVE to link your bank account. In India, if I'm not wrong Debit Card or CC would be good enough. And any money that comes into my PayPal A/C automatically gets shown in my bank balance even if it hasn't been transferred to my bank a/c technically.
 
Actually speaking, you need to enter PAN card no. as well when you newly login to Paypal...

Atleast I had to do it tommorrow, else they were not allowing me to proceed..//
 
mndar said:
I guess they must be having a tie up with Indian Authorities wherein Paypal is obliged to reveal account details of any Indian citizen. I'm not sure if Paypal's privacy policy permits this but they are free to change it whenever they want, so there is nothing we can do about it.

I guess they have brought in this rule just to bring in accountability for the money earned by people living in India. This is fine but not being able to use that money directly for online purchases is unfair because you then have to pay using your Indian credit card which attracts currency conversion charges plus some other taxes.

And this currency conversion generally happens at a rate little higher than the actual market rate. Like if the dollar rate is 49, the conversion is done at 51 or 52. This is totally unfair.

I would be fine with the I-T department asking me for a statement of my Paypal account.
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millions of dollars are being made this way, what RBI is doing now is keeping records of the earnings to be taxed.

and what crap do we get, the country is progressing so do the expenses, who's actually ???
 
RBI? I dont even think RBI alone wanted to do this. There might be private sector bank lobby behind this move as well.

We are gona get squeazed 2 way not. This goes beyond simple tax reasons.

Paypal already cuts their commission to make withdrawals which are now forced upon Indian user.

Traders cant use the incoming money and we must use CC as source of funding for our purchases..

These private sector banks charge much more than standard exchange rate to Indian CC users under the name of Foreign Currency Conversion Markup. So this way we are forced to pay more out of our pocket both ways :@ :@
 
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first of all why paypal needs PAN ...i dont understand it...they dont give any interest on money...even bank doent need any PAN card details while opening an account....its only needed during high value txn....RBI should rethink on this.

that 3rd point really messy....Shripad is right "we are forced to pay more out of our pocket both ways "
 
lol Indian Govt wants money to fill politicians pockets. Anyway now other services will get popular. Paypal wont be as popular now :P

Thing is when u earn sitting at home....DONT pay taxes. You are nt using any public funds to create ur income :rofl:
 
Has anybody here, withdrawn a particular amount(from PP) to their bank account, in the past few days? If so, what's the status? was it successful?
 
thetoxicmind said:
Has anybody here, withdrawn a particular amount(from PP) to their bank account, in the past few days? If so, what's the status? was it successful?
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Yep I just did about 5-6 days ago and I got the funds just like before.

varkey said:
Did anyone else get this mail? I have two paypal accounts and didn't get it in any of the two accounts.

Looks like it was a phishing attempt, please check the following thread at DP Forums.

Mass phising email to Indian paypal users about new RBI rule....
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But that mail looked SO genuine. Forget that, how come they addressed everyone by their personal name? Gotta admit great spammers. But there was no clickable link in that mail or anything as such! :S



UPDATE: Just confirmed that mail is genuine and sent by Paypal singapore. Lot of confusion related to it but it's 100% genuine. Read a few customer care replies at DP forum. Also in the making is another rule that might ban personal accounts for Indians due to RBI's so called regulation which might be in effect from May 1st. (Though cannot confirm on this thing as of now).
 
Well, the mail passes the Yahoo DomainKeys Test. Check the Attached Image.
What's weird is that the email has come from Silverpop Systems in Atlanta. Now Silverpop Systems is a company that provides Email Marketing services.

Things look suspicious especially from the discussion on forums.digitalpoint.com but I have a feeling it's genuine.
Let's see, I'll forward the mail I've received to spoof@paypal.com and see what they say about it.
 

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