Indian PayPal users are facing difficulties withdrawing money to their bank accounts for last couple of weeks. The users who were in urgent need of money and couldn’t wait for the problem to be solved, they were forced to withdraw money using alternative methods. Even I used an alternative way to withdraw money using XOOM. It worked fine for few days but later on it also stopped working.
Then Farhad Irani posted an announcement on PayPal blog that they are resuming money withdrawal to Indian banks from 3rd March. It was news of relief for all of us. But to withdraw the money to bank accounts, the users need to fill an ‘Export Code’ which was misunderstood as ‘Importer Exporter Code‘. In the latest post at PayPal blog, Farhad Irani mentioned that the Purpose Code is different from Importer Exporter Code issued by the Ministry of Commerce and Industry.
The option to fill Purpose Code is yet not added but after 3rd March when you will select ‘Withdraw Fubds’ option on your PayPal account, you will be asked to fill out a new field entitled ‘Purpose Code’ relevant to your business. For example : If you are a blogger like me then you need to fill P0805.
Purpose Codes Based on Different Categories with Description :
|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|
I hope everything will be on track again as suggested on 3rd March. [via : PayPal blog]