PayPal Purpose Codes to Withdraw Money to Local Banks in India

paypal_purpose_codes In previous update, PayPal Asia Operation had told us that Indian PayPal users will have to use “Exporter ID” to get the amount into their local banks and there were speculations hat the ID is nothing but Importer Exporter Code (IEC) but today’s update has clarified the issue that the new field has nothing to do with “Exporter ID” but that is a “Purpose Code”. Purpose Code is a simple code defined for PayPal to tell bank authorities about the reason of withdrawal.

According to the Purpose Codes published by PayPal, If you are a blogger and want to withdraw money from your PayPal account then you should use “P0805” as purpose code at the time of withdrawal. Below attached is the complete list of purpose codes for different purposes of withdrawal.

Purpose Codes published by PayPal

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 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.

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 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 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 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

P1004

Other services

Legal Services

If you are providing outsourced law related services

P1005

Accounting, auditing, book keeping 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 inwarded 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

[via thepaypalblog]

Currently there is no purpose code provided for donations and personal payments because these type of payments are still suspended to and from India. You can start withdrawing your PayPal money from 3’rd March 2010 using appropriate Purpose Code from above list.

Sanjeev Mishra is a professional blogger and an Internet Marketing Consultant based in India. He has built the Internet Techies to provide you updates in technology and web application area.
  • raja

    I am providing user name & password to my customers through my website. Which purpose code is applicable to me?
    Please suggest.