What if I can’t fulfil TDS (Tax Deducted at Source) due to the net settlement?

PayPal has been advised that according to the provisions of the Income Tax act, the fee charged by us doesn't fall under any category liable for tax deduction at source.

However, as stated in Clause 11.12 of the User Agreement, it's the responsibility of the users to check with their local tax advisor to determine the applicability of any taxes and accordingly pay such taxes to the appropriate tax authority. Please consult your tax advisor to understand the implications of the income tax law to you.  If you’re required to comply with the TDS provisions under the Income Tax Act, but you’re unable to make the deduction, you may deposit the appropriate amount with the Government of India and provide certificate in Form 16A in the name of PayPal Payments Private Limited, and then send it to paypal-tds@paypal.com

Upon successful verification of Form 16A with the records available with PayPal, a re-imbursement of the amount would be paid to you by way of demand draft which will be sent to the registered business address within 45-60 days of receipt of Form 16A.


1. What is the advised rate for Tax deduction?
 

Please consult your tax advisor to understand the implications of the income tax law to you.

2. What documents are to be provided for claiming TDS reimbursement?
 
Form 16A in pdf format  to be sent to paypal-tds@paypal.com

3.  Will the reimbursement be credited into my bank account or my PayPal account?
 
The reimbursement will be paid by way of demand draft sent to your business address registered with PayPal.

4. How long will the reimbursement take to be processed?

45-60 days from the date of receipt of Form 16A.