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 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 for 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 a certificate in Form 16A in the name of PayPal Payments Private Limited, and then send it to paypal-tds@paypal.com.

You are required to complete the one-off registration process in our internal Ariba system to process the reimbursement. 

What is the advised rate for Tax deduction?  

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

What documents are to be provided for claiming TDS reimbursement?  

Form 16A in PDF format is to be sent to paypal-tds@paypal.com. 

Will the reimbursement be credited to my bank account or my PayPal account?  

The reimbursement will be made to your registered bank account.

How long will the reimbursement take to be processed?

Upon registration and successful verification, we will process your claim within 21 days of receipt of your TDS certificate.