17 July 2024
I sell virtual gaming stickers of various online games which are sent to users directly within the game. I receive money in paypal.. I want to know which purpose code should I use in paypal for receiving these payments.. Are these virtual stickers considered as goods or services?
18 July 2024
Sir i have not designed it.. I don't own these online games.. They are created by someone else.. I just play them and sell virtual stickers that are inside the game to foreign people.. I want to know what purpose to select for receiving payments in Paypal..
18 July 2024
Further these cards are generated within the game.. And the game allows the players to trade these cards with each other.. I sell these cards to foreign people and receive money via paypal in USD. I'm not sure which purpose code to show in Paypal. Please revert back..
18 July 2024
Sir what purpose code should be selected then in Paypal? This purpose code will also be mentioned in FIRC by bank so please help regarding this..
18 July 2024
Sir they are saying you're receiving payment for your online work so you have to select a purpose code from the list provided on paypal. Their are around 25 purpose codes and i don't know which best describes my work...
18 July 2024
Select code for "To receive payments from advertising such as Kontera, BuySellAds, and Infolinks ... " as per data available with me it is P0806. Verify if it has changed.
18 July 2024
P1006- Business and consultancy management P1003- Operational leasing services P1106- Recreation and sporting activity services P0104- cross border delivery of goods and services P0806- Other Information Services P0801- Hardware Consultancy/Implementation P1101- Audio visual ans related services P1022- Other Technical Services Including scientific/ space services P0803- Database or data processing services P1007- Advertising and market research P0807- Off site software exports P1002- trade related services- commission on export/imports P0804- Repair and maintenance of computer and software P0808- Telecommunications services P0802- Software Consultancy P1104- Entertainment Services P1109- Other personal and recreational service P0805- News agency services
Sir these are the list of purpose code available on paypal for selection. Please look into it.
One more thing I wanted to clarify I buy stickers from indian sellers and sell them to foreigners. I buy limited stickers from other sellers rest I generate them myself and sell them.
18 July 2024
Sir i file my gst returns as well.. Are you sure about P1109 as I don't want gst related issues that may arise on wrong selection of purpose code in FIRC...
18 July 2024
No sir I'm not claiming any ITC as I purchase from unregistered individuals. Is reverse charge apply in my case? As far as I have read online it apply only on notified services and selling stickers does not come under any of the notified services..
19 July 2024
Sir some are saying P1109 and some are saying P1104.. I'm really confused.. I file gst return with LUT for 0 rate.. If I select either of the two then can it create any issue in future by GST authorities regarding wrong purpose code selection for FIRC and will i be demanded tax instead of the 0 rate that i claimed?
19 July 2024
GST department works as per GST act & rules, not as per rules drafted by google/Paypal. GST rules are applicable over HSN codes. So, even if I confirm you any thing, you will not be satisfied over it, so better get it confirmed from your GST Officer.
CAclubindia
