Purpose Code introduced for PayPal Indian Banks Transfer

Looks the problem which was going on in between PayPal and RBI has found a solution now. According to recent post on PayPal Blog,Farhad Irani has  declared and also introduced “Purpose Code”  which will be required when any body wants to make transfer of money from PayPal to Indian Bank account.  Our speculation was pretty much right about RBI fine tuning things.

Good news is that even Bloggers and Free Lancers are included in one of the code which is P0805. Here is the complete list

CodeCategoryDescriptionWho should be using it
P0101 / P0104Export of GoodsValue 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.

P0301Travel , Hospitality and ToursPurchases 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
P0801 P0802

P0803

Information TechnologyComputer Information Services. Hardware / Software / Data Processing consultancy/implementationIf 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 P0806Content and JournalismNews Agency and Subscription servicesIf 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
P0902Licensing of creative worksReceipts 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
P1004Other servicesLegal ServicesIf you are providing outsourced law related services
P1005Accounting, auditing, book keeping and tax consulting servicesFor accounting consulting and accounting services
P1006Business and management consultancy and public relations servicesManagement / brand consulting and management services can be exported with this purpose code
P1007Advertising, trade fair, market research and public opinion polling servicesMarketing/ brand consulting / logo design / event management services can be exported with this purpose code
P1008Research & Development servicesIf you are an outsourced research and development services provider based in India, receipts can be inwarded through this purpose code
P1009Architectural, engineering and other technical servicesAny 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

About Ashish Mohta

An analyst who writes about undiscovered,unknown and untalked topics for people who want to to know more about India and Indians.