I am selling herbal products from India to US on eBay and receive money via paypal. My CA said I am exporting goods so I'll get rebate in tax. When I told him I get money via Paypal he said it is not possible to show my business as export because paypal pay me in INR and I am not getting any foreign currency in my bank account. He said for export business you should get foreign currency in your bank account and then bank will convert in INR. I discussed this with 2 CA and both are confused about this Paypal logic. Can someone please help me with this??? I have TIN number and IEC.
PayPal pays with service tax, where ever you have exported you would have given the invoice, and the statement should be shown. I am also an exporter, I know the rules some times a CA might not be aware of PayPal.
Just show your statement from PayPal and the deduction.