10% deducted from an International payment received

DIAAFIT
New Community Member

Hi All,

 

I would like to know why approximately 10% were deducted from a payment I received from overseas.

 

Thanks.

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sharpiemarker
Esteemed Advisor
Esteemed Advisor

@DIAAFIT 

 

Receiving international transactions

 

Where sender’s country/territory is: Outside of India (IN)

 

Rate:  4.40% + Fixed Fee

 

There could be GST taxes on the PayPal fees:

What is GST and how does it apply to PayPal services in India? What if I’m in a Special Economy Zone...

 

"Goods and Services Tax (GST) is a comprehensive indirect tax on all transaction of goods and services throughout India. It’s calculated at 18% on all types of fees (not purchase amounts) charged by PayPal for its services to all India users.

GST will be levied on the fees for all international and domestic transactions for both Business and Individual accounts registered in India.  A consolidated invoice will be shared with you at the end of every month.  Merchants/freelancers may be eligible for refunds or set off the GST charged – please consult your tax advisor for details."


Kudos & Solved are greatly appreciated. 🙂
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