I am about to start an online ad network in which we will get payments from advertisers and we will give payments to publishers.
I have IEC NUmber.
Can I use Paypal to get the funds from advertisers and use the funds to deposit in publisher's PayPal A/c and withdraw the rest from my PayPal A/c to Bank A/c?
IEC code is required for importing or exporting of goods not the services. There is no restriction on uses of fund on expenses arises from income. Please explain what is this Paypal A/c.
09 December 2008
We have contacted DGFT regarding whether IEC is required for service provider as well and they replied positively and even there ANF2A also contains a checkbox for Service Provider.
PayPal www.paypal.com is an Internet wallet where anyone can open an account with an email address and use the account to get paid by others and use the funds to pay other PayPal A/c holders or for online shopping.PayPal can also be used as an merchant account to accept credit card payments to PayPal Account.PayPal provides an option to withdraw funds to Indian Banks in INR but they do not provide FIRC.In this bank tranx will not be involved for publisher payment.
Otherwise, can we sign up for a merchant account with a US company and get funds by advertiser's by way of debit to their credit card and then withdraw funds in USD by check or wire transfer and use our credit card to pay to publishers PayPal A/c?In this type bank is involved in both type of tranx.
09 December 2008
We have contacted DGFT regarding whether IEC is required for service provider as well and they replied positively and even there ANF2A also contains a checkbox for Service Provider.
PayPal www.paypal.com is an Internet wallet where anyone can open an account with an email address and use the account to get paid by others and use the funds to pay other PayPal A/c holders or for online shopping.PayPal can also be used as an merchant account to accept credit card payments to PayPal Account.PayPal provides an option to withdraw funds to Indian Banks in INR but they do not provide FIRC.In this bank tranx will not be involved for publisher payment.
Otherwise, can we sign up for a merchant account with a US company and get funds by advertiser's by way of debit to their credit card and then withdraw funds in USD by check or wire transfer and use our credit card to pay to publishers PayPal A/c?In this type bank is involved in both type of tranx.
15 January 2009
Yes, you can do these transaction. As long as you are transacting through authorised dealers (Banks), there is no problem in doing any current account transaction. Bank may ask a declaration from your side.
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