{"id":11752,"date":"2010-03-02T21:57:33","date_gmt":"2010-03-02T16:27:33","guid":{"rendered":"https:\/\/www.quickonlinetips.com\/archives\/?p=11752"},"modified":"2020-05-24T10:28:43","modified_gmt":"2020-05-24T04:58:43","slug":"paypal-india-purpose-code","status":"publish","type":"post","link":"https:\/\/www.quickonlinetips.com\/archives\/2010\/03\/paypal-india-purpose-code\/","title":{"rendered":"Paypal India Users Need Purpose Code to Withdraw Money"},"content":{"rendered":"<p>The <a href=\"https:\/\/www.quickonlinetips.com\/archives\/2010\/02\/paypal-stops-india-payments\/\">Paypal India fiasco<\/a> is continuing. Now <a href=\"https:\/\/www.thepaypalblog.com\/2010\/03\/new-bank-withdrawal-instructions-for-our-customers-in-india\/\" rel=\"noopener\">Paypal has informed<\/a> Indian users withdrawing money need to fill out a new field &#8220;<strong>Purpose Code<\/strong>\u2019, which is now required under Indian laws in order to identify the nature of  cross-border merchant transactions. This is not the IEC or export code everyone was blogging about.<\/p>\n<p>Some key implications now are that Indian PayPal users are  <strong>no longer able to receive personal payments<\/strong> and your\u00a0 <strong>customers now have  three options to pay<\/strong> you by using the Pay for Purchases (Goods or\u00a0 Services) tab, completing PayPal checkout at your website or responding to PayPal \u201cRequest Money\u201d instructions (invoices).<\/p>\n<p>Paypal enlists a <a href=\"https:\/\/www.thepaypalblog.com\/2010\/03\/new-bank-withdrawal-instructions-for-our-customers-in-india\/\" rel=\"noopener\">long list of Purpose codes<\/a>. These match with the\u00a0 New  Purpose Codes for Reporting Forex Transactions-Receipt Purposes on the Reserve Bank of India website. If you check the list, it seems\u00a0 Bloggers will need to use purpose code <strong>P0805<\/strong>, under the category <strong>Content and Journalism<\/strong> described as News Agency and Subscription services.<\/p>\n<p>What is unclear is that if you simply receive advertising income and send out free new updates, how can you be exporting your service. Paypal is only allowing <a href=\"https:\/\/www.quickonlinetips.com\/archives\/2010\/02\/paypal-india-bank-withdrawals-for-export-goods-services\/\">withdrawls for export of good and services<\/a>, and as before I am still skeptical if this would invite<a href=\"https:\/\/www.quickonlinetips.com\/archives\/2007\/04\/pay-service-tax-on-google-adsense-earnings-in-india\/\"> service tax burden<\/a> under the the Export  of Service Rules, 2005 on those who will now come under the RBI scanner.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Paypal India fiasco is continuing. Now Paypal has informed Indian users withdrawing money need to fill out a new&#8230;<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_kad_post_transparent":"","_kad_post_title":"","_kad_post_layout":"","_kad_post_sidebar_id":"","_kad_post_content_style":"","_kad_post_vertical_padding":"","_kad_post_feature":"","_kad_post_feature_position":"","_kad_post_header":false,"_kad_post_footer":false,"_kad_post_classname":"","footnotes":""},"categories":[1],"tags":[24],"class_list":["post-11752","post","type-post","status-publish","format-standard","hentry","category-tips","tag-india"],"_links":{"self":[{"href":"https:\/\/www.quickonlinetips.com\/archives\/wp-json\/wp\/v2\/posts\/11752","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.quickonlinetips.com\/archives\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.quickonlinetips.com\/archives\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.quickonlinetips.com\/archives\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.quickonlinetips.com\/archives\/wp-json\/wp\/v2\/comments?post=11752"}],"version-history":[{"count":0,"href":"https:\/\/www.quickonlinetips.com\/archives\/wp-json\/wp\/v2\/posts\/11752\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.quickonlinetips.com\/archives\/wp-json\/wp\/v2\/media?parent=11752"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.quickonlinetips.com\/archives\/wp-json\/wp\/v2\/categories?post=11752"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.quickonlinetips.com\/archives\/wp-json\/wp\/v2\/tags?post=11752"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}