Paypal India’s 18% GST Is Not Applicable For Overseas Transactions

Freelancers in India have been outraged at a recent policy update on Paypal India that suggested that an 18% GST would be charged on all future transactions. The note on the Paypal India website read,

“We have updated our UA  to comply with local laws applicable to Indian companies including local taxation laws. We have been advised PayPal Services will attract a GST rate of 18%. Please consult your tax advisors in terms of your eligibility for refunds.”

In effect, what Paypal seemed to suggest is that all future transactions (starting October 2 or later) would invite a default deduction of 18% towards GST which its users may claim a refund for from the Income Tax authorities after furnishing sufficient proof.

This appeared ridiculous given that Paypal transactions within India are restricted to overseas transactions (which should not invite a GST in the first place). A recent Change.org petition filed over the matter suggested  something even more apocalyptic.

“I have real bad news guys. In a support chat one of our people was able to get a clarification from Paypal that the 18% GST would be deducted on the entire amount, and not just their charges.

This really creates an even more explosive situation.

On one hand, Paypal will take 18% GST from you already, and on the second, you have to register and give the GoI 18% GST (that you need to claim a refund for later), or file exemption.

So in effect, you could be losing 36% of your revenues on arrival, with no clarity on refunds at all because you don’t have FIRCs yet.”

No GST For Overseas Paypal Transactions

But all of this looks to be a miscommunication. GoRumors was able to get confirmation from Paypal that GST shall not be levied on overseas transactions. In an email response, a Paypal support representative wrote,

“Kindly be informed that this information is for a new update which will be coming soon and you will be informed before it is implemented.

Rest assured if it is an overseas transaction it will be exempted from the GST charges.”

Paypal GST India

So there you go – no GST for the kind of transactions that are now prevalent on Paypal.

Paypal Soon For Domestic Transactions In India?

What this also means is that we may soon have Paypal open up for domestic transactions in India. At the moment, this facility is not available to Indian users. But by registering as a local company, Paypal can establish itself as a viable alternative to other popular digital wallets in the country like Paytm and Mobikwik.

That would be a welcome step, if only Paypal didn’t have those high fees.

 

Wikileaks Paypal Funds Released – Account Still Restricted

Paypal has been facing the brunt of the Anon after the company admitted to being browbeaten by the American government to block funds to Wikileaks. The company website has been facing extreme DDoS attacks from the Anonymous group called ‘Operation Payback‘. While http://paypal.com looks down still, www.paypal.com appears to have recovered at the time of writing this post.

Perhaps in a bid to pacify the attackers, Paypal has announced that the company has decided to release the funds it had accrued through donations made to Wikileaks from donors from across the world. However, this does not mean Wikileaks’ supporters can use the channel to make their donations once again. The group’s account remains restricted which means it will not be able to gather more funds.

Paypal has however noted that the government had no say in its actions and it was their management’s decision.

Wikileaks Funding Squeezed – Paypal Blocks Wikileaks’ Access

Wikileaks has been going through a turmoil. Yesterday, EveryDNS – the company that offered DNS management service to Wikileaks blacklisted their website thereby bringing the whistle-blower website down. As we had noted, you can still get access to Wikileaks documents using one of the mirror websites.

But tightening the noose further on the whistle blower website, Paypal – an eBay subsidiary – has announced that the company is blocking access to funds for Wikileaks from their customers. In a media statement, Paypal has said

“PayPal has permanently restricted the account used by WikiLeaks due to a violation of the PayPal Acceptable Use Policy, which states that our payment service cannot be used for any activities that encourage, promote, facilitate or instruct others to engage in illegal activity”

Paypal claims that it was under no pressure from the US government to act. But that sound dubious considering the sequence of events that Wikileaks has gone through over the past one week.

What do you think? Do you think the Wikileaks ban was genuine or do you think Paypal was under pressure to act?

Android Paypal Payment Support To Roll Out Today?

Google and Paypal have long known to be working on something. Late last month, we discovered that an ‘Enable Paypal Payments‘ option would soon be made available on the Android platform making it easy for Android phone users to pay for apps from their Paypal account. It was widely expected that an announcement in this regard would be made at the Paypal X Developer Conference last week but nothing happened.

Now according to a fresh rumor, Google could be making an announcement today – November 2 – about its roll out plans. If you are lucky enough, the roll out can happen as the announcement happens. But do note that the veracity of the source is not known and hence you may have to take this with a bit of guarded skepticism. We will update you when the announcement actually happens.

Android Market To Enable Paypal Payments Shortly

If you are on an Android phone, you will soon be able to pay for apps from your Paypal account. A leaked screenshot of an upcoming update to the Android publisher website shows a new ‘Enable Paypal Payments‘ option. What this option will do is to let Android phone users transfer money from their Paypal account to their Checkout in order to pay the app bills. No word on whether this is going to be optional or going to be enabled on all Android paid apps.

Android market

Either way, this is a very welcome addition to the Android marketplace. Google Checkout has not exactly done well and with Paypal, for all complaints over its high fees, has been one popular online payment gateway and its incorporation into the Android market should give users a good alternative channel to source money from for their app purchases.

Updated Paypal iPhone App Allows Electronic Deposit Of Checks

eBay-owned Paypal has been bringing a number of innovative technologies to the iPhone. After letting users to ‘bump’ their phones in order to exchange contacts and send money with their earlier update, Paypal has now announced yet another update to their iPhone app that will make it easier for users to deposit money into their […]

eBay-owned Paypal has been bringing a number of innovative technologies to the iPhone. After letting users to ‘bump’ their phones in order to exchange contacts and send money with their earlier update, Paypal has now announced yet another update to their iPhone app that will make it easier for users to deposit money into their account.

The new electronic check deposit feature will allow users to simply capture a picture of the front and back sides of their checks and submit it electronically for the money to be automatically transferred from the bank to their Paypal accounts.

While this is definitely a convenient way to transfer money, not all users are happy. A review of the new feature on the App Store brings up a very pertinent point,

“PayPal proudly announced the new check deposit feature last week to much fanfare, claiming this version would be released in a day or so. Well, try several days. It’s immediately slower, but it’s worth it, right? After all, we’ve suffered for years with PayPal pretending we have to wait three business days for ACH transfers to happen, so at least now we’ll have a way to deposit funds instantly. Oh, think again! Now they want us to believe that instead of same-business day crediting that’s a normal part of Check 21, we’re supposed to wait six business days “or longer” for the deposit. Yes, seriously. Whatever you do, don’t use this feature; you’d be better off mailing your check to a bank in another state! PayPal stands to make a fortune off the float on these check deposits. Unreal!”

You can still check out the new version of the app by clicking here.

Android Apps Purchase Using Paypal Could Be Coming Soon

eBay and Google are reported to be in talks over a possible integration of the Android app marketplace with Paypal’s payment processing system. The rumor, which both companies have not confirmed so far, will allow Android phone users to make app purchases using Paypal. At present, this is only possible over a credit card or Google’s payment processing system – Google Checkout.

Paypal is one of the leading online payment gateway systems that is however often criticized for its extraordinarily high charges on transaction fee. While many users would any day prefer a Paypal payment over possible direct credit card checkout (which can lead to possible wireless thefts), it is not clear how customers will view Paypal vis-a-vis Checkout in a Google-controlled environment. Also, it is not clear if Google stands to make a commission on every transaction made via Paypal over the Android marketplace.

Paypal Grows Ten-Fold In Australia

eBay’s online transaction service provider, Paypal has announced that the company’s growth has been on the up, down under. In a recent statement, the company has announced a ten-fold growth in the Australian market with close to 50% of Australia top 100 online retailers now using the Paypal platform as a payment option on the website.

Paypal has not revealed the time-frame for which the growth was measured. However, the company says that the terrific growth in the region will bring a new head for the Australia Merchant Services Division. Elena Wise, who previously served at American Express as the vice president of B2B will now be taking over as the head of merchant services division.

Paypal is noted to have over 30,000 online merchants from the market who serve over 3 million customers.

[via ITWire]

Paypal Car Integration Coming In Future

Paypal could integrate its technology to your car so that you may be able to automatically trigger payments while passing through a toll bridge, park your car or while visiting a fuel station. This was revealed in a recent conversation by Paypal President Scott Thompson. He said,

“Companies are building automation into cars, so that when you pull into a parking spot and you park for 62 minutes, you pay for that 62 minutes. Why can’t the car authenticate you when you’re dispensing fuel? Why can’t it authenticate you when you go through a toll booth?”

Thompson conceded that the only requirement here would be to provide a secure payment and authentication system which Paypal is striving to provide. You can watch the complete conversation about Paypal’s future payments strategy in the video embedded below

[via GigaOm]

Paypal To Enable Expense Sharing Over Network

A patent application filed by eBay back in Novemeber 2008 and revealed just recently throws light on a new feature that will enable a group of users to share an expense while making a purchase. Conventionally, a single user has to make the payment for goods online and online tools only help the user in determining the share of each member in a group.

However, with the new technology, a payment may be divided among a group of users and the share pulled from each of the group members to make the group payment.

The patent application reads,

” a method for facilitating sharing of expenses over a network includes communicating with at least one member of a user group via at least one client device over the network and a merchant via a merchant device over the network. The method includes receiving a group transaction request, dividing a payment for the group transaction request into a plurality of portions according to a number of members in the user group, separately debiting the portions of the payment from one or more accounts related to each member of the user group, and providing payment to the merchant via the merchant device based on information passed with the group transaction request. “

Paypal Group transaction

It is not entirely clear if this is a feature being envisioned for eBay or Paypal since such a feature will be relevant on both the services.

[via USPTO]