FIRC (Foreign Inward Remittance Certificate) and PAYPAL

IFRS 3597 views 3 replies

ArchAngel

Corporate Affairs Enthusiast

118 Points Joined April 2011

Dear Experts,

Any of you have experience with dealing with Paypal payments. I am associated with an export company, where most of the payments comes with paypal. Though we are able to transfer the money to our Indian bank, the money conversion is being done in PayPal side.

Our chartered accountant says we may need to keep Foreign Inward Remittance Certificate (FIRC) for each withdrawal. Do you have any experience with dealing with PayPal withdrawal and FIRC? Can you please advice me how to get it?

Thanks and Regards,

ArchAngel

Replies (3)

RAMESH KUMAR VERMA

CS PURSUING

43853 Points Joined December 2009

after account signing on below mentioned link contact them:-

https://www.paypal.com/in/cgi-bin/helpweb?cmd=_help

When any foreign exchange (currency) comes to your bank account Bank wants confirmation from your side as per RBI rule i.e.-what is the purpose of this remittance means how and why got this money? Then You have to submit the purpose/amount/ bank account etc. to the bank.

for more information:

saurabh jain

Audit Specialist

271 Points Joined August 2008

I believe that as per recent changes, paypal is requiring for purpose code. So, after that they will be able to issure FIRC or not?

Is there any clarity about Service tax- like somebody purchased mobile application from payapl and we recived amount in our paypal account. will it be treated as export and will be exempt from service tax?