PayPal and RBI together introduced Purpose Code for the Indian PayPal account in 2010. Anybody who transfers money needs to use a purpose code, which gives the RBI and Income Tax Department a clear idea of the purpose of the money. It is especially useful for those who receive international transfers.
PayPal Purpose Code to transfer money to Indian Banks
The good news is that even Bloggers and Free Lancers can use code P0805 to transfer money to their bank account. Here is the complete list along with information on how you can set a default Purpose Code and change it if your business needs it. It is also possible to change Purpose code on the fly if you manually transfer money from PayPal to the bank account. Be aware that you will have to go through PayPal KYC for Pan details at least once.
|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 websites/catalogs 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 the 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|
|P0805 P0806||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 model 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, bookkeeping, 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 rewarded 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|
How to change the Purpose Code in PayPal?
PayPal allows you to dynamically choose a purpose code when transferring money to your Indian bank account. Since the setting about Purpose code in PayPal is not there anymore, we would recommend you to change it in your next withdrawal. When doing so, you will also have the option to set the default purpose code for future payments. Since PayPal can automatically transfer money to your Bank account within 24 hours, its good to have a default purpose code.
Sir plz tell me P0101 /P0104 IN which code is used FOR ME I AM EBAY SELLER ??PLZ SIR I AM GEETIMH CONFUSED WHICH CODE I USED ?