Receiving payments for domestic sales

- P1590 (For receipts below $ 10,000)

For detailed discussion you may opt for phone consultation

For an eBay seller receiving payments from Indian consumers in foreign currency, the appropriate purpose code can be a bit specific depending on the nature of the goods sold. Generally, for e-commerce transactions where goods are sold to consumers, you might use the following purpose codes:

1. 
   P0802 – For receipts on account of sale of goods through e-commerce platforms.
2. 
   P1007 – If your goods are classified under IT and IT-enabled services (if your sales include software or digital products).

The purpose code P1590 is generally used for other types of transactions.

For detailed, personalized advice, consider a phone consultancy. Hope you find the information helpful. You are free to contact me for further discussion. If you could spare two minutes of your time to write a review, it would be greatly appreciated and bring immense happiness to read it. Thank you. Shubham Goyal.

When receiving payments in foreign currency for goods sold to Indian consumers via eBay, it's essential to select the appropriate purpose code to ensure compliance with the Reserve Bank of India's (RBI) regulations. Purpose codes are unique identifiers assigned by the RBI to classify the nature of international transactions.

In your scenario, since you're receiving foreign currency payments for goods sold within India, the transaction resembles an export of goods. Therefore, the relevant purpose code would be:

• 
  P0103: Advance receipts against export contracts (export of goods only).

This code is used for advance payments received against export contracts, which aligns with your situation where payments are received in foreign currency for goods sold domestically.

Its advisable to ask the list of Purpose codes from the concerned bank and share the same with us to ensure the correct application of the purpose code, as accurate reporting is crucial for regulatory compliance.

There are two possible scenarios in your case:

1. Selling goods both outside India and within India via eBay
eBay processes payments through Payoneer. To comply with regulations, you must set up a purpose code in Payoneer. The only suitable purpose code available is P0103, which applies to the Export of goods.

Additionally, ensure you have created an IRM with your Authorised Dealer (AD) and cleared any outstanding entries in EDPMS. However, you may face challenges in generating an IRM for domestic sales, as shipping bills are not issued for these transactions.

2. Selling goods within India only via eBay
Payoneer does not provide a specific purpose code for Domestic sales. The P1590 code (used for "others") is also unavailable in Payoneer.

Note: There is no designated purpose code for cases where you sell goods within India but receive payments from outside India in Foreign currency.

If you are selling in India using ebay are you paying GST?

Purpose code would be P1019 in my understanding as I understand there is no other purpose code.

Hope you find above information helpful if yes please rate it 5.

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Regards.