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PayPal TAX INVOICE

Contributor

PayPal TAX INVOICE

 

Hello,

I have a PAYPAL India's Business Account.

 

So, I have recently received from PAYPAL India a Tax Invoice for the month of August (1st Aug'20 - 31st Aug'20).

 

1.) So, am I supposed to pay the total amount mentioned in the tax invoice (, that is, PAYPAL Fees and GST amount) either to PAYPAL India or to India's GST collection department of India Govt.?

 

2.) Secondly, will this Tax invoice be generated every month or only in those months whenever there has been a transaction to my account?

 

3.) In the tax invoice, the amount of fees charged by PAYPAL is mentioned in a consolidated amount. So, I am finding it difficult to match the total amount by consolidating the fee involved for each transaction.

In my case, whenever payment has been forwarded to my Paypal account, from an international entity, the fee was clearly mentioned as 0.00 USD. The only times when a non-zero fee were explicitly mentioned was when the transaction was from Paypal in another region to Paypal India.

 

i) So, from the activity report, if I have to match the fees involved for each transaction in the past month, then, should I only consider "completed" transactions which entered Paypal account and exclude any automatic withdrawals to bank account?

 

Secondly, the fee amount of 4.4% should be charged on Gross Amount, right?

 

So, for Complete Transactions credited to Paypal (where the fee column was shown as 0.00), is the following the fee-calculation formula?

 

4.4% of Gross Amount + (Fixed Fee of 0.30 USD, in the case of currency being in USD)

 

In the case of Paypal-to-Paypal transactions (where the fee column showed non-zero value), will the following be the fee-calculation formula?

 

4.4% of Gross Amount + (Fixed Fee of 0.30 USD, in the case of currency being in USD) + (Fee mentioned in Fee column of the particular transaction)

4.4% of Gross Amount + (Fixed Fee of 0.35 EUR, in the case of currency being in EUR) + (Fee mentioned in Fee column of the particular transaction)

 

Please confirm if the above-mentioned ways are the correct ways to calculate the fees involved per transaction, which on consolidation will match up the amount mentioned in the tax invoice?

 

ii) Also, may I know the currency conversion rate PAYPAL uses to convert international currencies to INR?

 

 

4.) Are Tax invoices provided in the case of Individual or Personal Accounts of PAYPAL India? Are transactions from an international entity in international currencies can be received in individual accounts also and are the fees applicable same as that of a business account? Are Automatic Withdrawals to bank accounts is also applicable in the case of Individual/Personal accounts?