Indian Paypal users need ‘Purpose Code’ and not Import-Export Code to Withdraw Funds to their Bank Accounts
Since a couple of weeks there has been chaos among Paypal users as it paused withdrawal option from Paypal to Indian bank accounts which was one of the most loved and used service among Freelancers, bloggers and service providers to receive money from outside the country.
But earlier this week, in one of its official blog, Farhad Irani posted that they will be resuming bank withdrawal option to Indian users if they provide with ‘Export code’ while withdrawing funds, which many people misunderstood as ‘Import Export Code’ (One needs to apply to govt. of India for IEC). But a few hours ago, Farhad cleared that its not ‘IEC’ that one needs and its just ‘Purpose code’ that would solve your purpose!
An Indian Paypal user simply need to put the purpose code depending on the category they receive funds on their Paypal! (For ex. you need to use code ‘P0805’ if you are a blogger/freelancer/journalist). Guess this news would definitely be relief for many Indian bloggers and freelancers.
Paypal purpose code for different categories:
|Code||Category||Description||Who should be using it|
|P0101 / P0104||Export of Goods||Value of export bills negotiated / purchased/discounted etc. (covered under GR/PP/SOFTEX/EC copy of shipping bills etc.)||
eBay merchants, jewelers, sellers of collectibles and other such products through eBay and your own websites / catalogues globally.
Please note: Cross border shipment of goods and services for which you file GR / PP / SOFTEX / EC forms only should be processed with this code. Use P101 if Deutsche Bank is your banker and P0104 if you bank with any other bank
If you have any questions, please check with your bank to help you with the same.
|P0301||Travel , Hospitality and Tours||Purchases towards travel (Includes purchases of foreign TCs, currency notes etc over the counter, by hotels, hospitals, Emporiums, Educational institutions etc. as well as amount received by TT/SWIFT transfers or debit to Non-Resident account).||Online Travel Agents, Airlines, Railways, Buses, Taxicab Services, Hotels, B&Bs and other travel / tourism related sales through PayPal|
|Information Technology||Computer Information Services. Hardware / Software / Data Processing consultancy/implementation||
If you are an independent / freelance coder / hardware consultant or data processing service provider, or a small business providing such services for websites globally, please use these codes.
For all IT related consulting services where you know you do not need to file a SOFTEX form, please use the appropriate code. 801 for hardware consulting, 802 for software consulting and 803 for data management and processing consulting services
|Content and Journalism||News Agency and Subscription services||
If you are a freelance journalist / blogger / news aggregator please use this purpose code for withdrawals.
If you are a newspaper or an online news aggregator for websites overseas, please use the appropriate code from these two. 805 if you a freelance journalist, and 806 if you are a newspaper / aggregator
|P0902||Licensing of creative works||Receipts for use, through licensing arrangements, of produced originals or prototypes (such as manuscripts and films)||
Artists, designers, other creative service providers where the principal revenue mode is license fees, please use this code.
If you produce creative works which you license out for entities overseas, licensing revenues may be classified under this purpose code
|P1004||Other services||Legal Services||If you are providing outsourced law related services|
|P1005||Accounting, auditing, book keeping and tax consulting services||For accounting consulting and accounting services|
|P1006||Business and management consultancy and public relations services||Management / brand consulting and management services can be exported with this purpose code|
|P1007||Advertising, trade fair, market research and public opinion polling services||Marketing/ brand consulting / logo design / event management services can be exported with this purpose code|
|P1008||Research & Development services||If you are an outsourced research and development services provider based in India, receipts can be inwarded through this purpose code|
|P1009||Architectural, engineering and other technical services||Any other technical services such as eTutoring, education and other services you render over the internet via web conferencing tools or similar channels, please use this code for your withdrawals|
<p> (Pupose codes are from <a href="https://www.thepaypalblog.com/2010/03/new-bank-withdrawal-instructions-for-our-customers-in-india/" onclick="_gaq.push(['_trackEvent', 'outbound-article', 'https://www.thepaypalblog.com/2010/03/new-bank-withdrawal-instructions-for-our-customers-in-india/', 'Paypal’s blog']);" >Paypal’s blog</a>) </p> <p> (<em>Image credits: </em><a href="http://www.labnol.org" onclick="_gaq.push(['_trackEvent', 'outbound-article', 'http://www.labnol.org', 'labnol']);" ><em>labnol</em></a>) </p>