Using paypal to freelance? This govt. rule will kill your business

Indian freelancers are going to bleed, if this rule goes through

In short, if you are a freelancer that gets paid via paypal or Payoneer then post Oct17 every payment will attract 18% GST and will require a separate FIRC (which costs Rs200 + GST). This will effectively DESTROY the indian freelance market.

You can read the full article and sign the petition here Indian freelancers are going to bleed, if this rule goes through

If you are getting any kind of payments via Paypal/Payoneer or hope to do so in the future then please sign now.

Should be moved to Technology news

Flash said:
Should be moved to Technology news

Done.
And I used to think freelancing could be a good option until I read about this.

SaiyanGoku said:
Done.
And I used to think freelancing could be a good option until I read about this.

Maybe they should declare a cut-off amount, above which GST should be applied.

F

get paid by cryptocurrency

fz8975 said:
get paid by cryptocurrency

Meghwal ruled out instant policy measures to legalise introduction of crypto currency for security and commodities related transactions in Indian context pointing out though that a Committee has been set up to examine the pros and cons on the subject.

Govt keeping an eye on GST implementation regularly: Meghwal

Apparently Paypal has confirmed that the 18% GST is applicable only on the fee charged by PayPal and not the entire amount. This makes more sense

However the catch remains, all exports are tax exempt. To get that exemption you need a FIRC (200 bucks). So unless your payment amount is large (not the case in freelance) you'll spend crazy money and time getting this.

D

Maybe they should declare a cut-off amount, above which GST should be applied.

A

so if I recieve 500k INR income from freelance via paypal then will i pay 90000 gst or does it work differently?

aby geek said:
so if I recieve 500k INR income from freelance via paypal then will i pay 90000 gst or does it work differently?

Hmm.. I like the numbers though.

On TE, someone was saying 18 % of the PayPal fee. Not the core amount.

A

What is the rate at which that tax is exempted?

PayPal fee is 4.4 % +$0.30 if the international payment received is upto $3000.

Flash said:
Maybe they should declare a cut-off amount, above which GST should be applied.

david19922 said:
Maybe they should declare a cut-off amount, above which GST should be applied.

Are you copy-pasting my comment?

aby geek said:
What is the rate at which that tax is exempted?

PayPal fee is 4.4 % +$0.30 if the international payment received is upto $3000.

Does this get applied at all amounts? I've been checking my account and can't see such a fee. Or do they automatically cut it when they transfer?

Yes, Paypal confirmed 18% on paypal fee. But even thats a bummer as exports are supposed to be exempt

You can follow the petition here
Sign the Petition

A

here are all fees details PayPal Fees - For Purchases, Getting Paid and Merchant Fees - PayPal India

aby geek said:
here are all fees details PayPal Fees - For Purchases, Getting Paid and Merchant Fees - PayPal India

Any news about Payoneer? I get my salary every alternate week

Sent from my Redmi Note 4 using Tapatalk

A

kartikoli said:
Any news about Payoneer? I get my salary every alternate week

Sent from my Redmi Note 4 using Tapatalk

found this Payoneer Fees - Low Fees & No Hidden Costs: Save up to 71%

aby geek said:
found this Payoneer Fees - Low Fees & No Hidden Costs: Save up to 71%

Is Payoneer better than Paypal in terms of fees?

I think the tax component is the same on both

Most people in US and Europe will choose PayPal as the payment service. They might not know about Payoneer.