RBI vs PayPal – RBI sets to kill freelancers

RBI vs PayPal

RBI’s recent directives which limited the transactions of through Online Money transfer entity PayPal was aimed at tightening the hold on freelancers’ and regulating them for taxes. All sorts of freelancers and small-scale service providers,- small data entry firms, medical transcription providers, copywriters, web designing firms, report writers, freelance software developers, graphic designers, animators and many more falls in the list who are to be regulated and hit with tax enforcement. But the big question is why the RBI is trying to jump into the field of taxation, especially bothering about the income tax of freelancers when it should be the call of the Income Tax Authority of India to indulge in such matters. The Reserve Bank of India is not mean for issuing and bothering about taxes of individuals and we can clearly sense a foul play resting beneath the RBI’s proud claims.

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It is indeed shameful that our Government can impose taxation on small-scale entrepreneurs or freelancers who work for foreign customers or firms over the internet for their bread and butter. The Indian Government have never been able to assist these freelancers with any business or employment opportunities, never attempted at setting up an international scale infrastructure of freelance business and in fact, could never even provide the sufficient or continuous power supply for any online business to scale up. The RBI or the Government, by restricting the amount of money flow in each transaction has only added to the woes of the freelancers who would now be spending huge amounts of money as charges for online withdrawals and losing substantial amounts in the conversion of dollar-rupee.

The freelancers who earn by providing services to clients abroad with their own talent and who have never seen any help from the Government for their enterprise to develop or for them to be employed ideally they should not pay any tax other than the service tax of their internet service providers. Unfortunately, the Government of our country thinks otherwise,- they just need more and more money to be extracted from the common men (though it can do nothing to recover the millions of black money hidden by filthy rich Indians in Swiss banks), even if this kills small scale and budding entrepreneurship in the country. And not to forget the big firms and the capitalist lot would, of course, reap off great benefits,- it’s a really good time to capture some market, which otherwise was ruled by the low-cost service providers and freelancers. RBI’s dictatorship shows true signs of the same underlying conspiracy by the Indian bureaucrats who never cared for the aam aadmi but only for their pockets.

About Priyankan Goswami

Priyankan Goswami Priyankan Goswami is the Editor of Times of Assam's Political Analysis section. He is also founder member and member of the Executive board of Times of Assam. By Academic Priyankan Goswami is MBA & Mechanical Engineer.

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7 Responses to "RBI vs PayPal – RBI sets to kill freelancers"

  1. TheSeeker  March 17, 2011 at 12:50 PM

    This act of RBI is deplorable. It is akin to sending to jail an urchin who steals a loaf of bread to feed himself. What do they get out of it? PayPal transactions were easy way to work on even small projects worth $5 or $10. An independent service provider could accumulate their money and get something out of their talent.

    RBI policy makers should see pros and cons of their decisions. What do they get out of it? This was only getting foreign money into India. Indians were gaining from it.

    It completely beats me why those who steal millions and billions go free, and smaller common people continue to suffer.

    Reply
  2. Senthil  March 17, 2011 at 03:07 PM

    [QUOTE=nihangshah;15943104]Worth reading – [URL=”http://timesofassam.com/headlines/rbi-vs-paypal-rbi-sets-to-kill-freelancers”]RBI sets to [B]kill freelancers[/B][/URL][/QUOTE]

    I agree 100 % with that article and that has been my thoughts for some time now. The tax that the common man pays to the government is for the infrastructure, job opportunities and umpteen things that the govt provides for the common man.

    In the case of Internet marketing / Freelance Programming , the government has very little part to play in the process. The only thing the government provides is Internet connectivity and Electricity for which we pay the bills and the service taxes associated with it. Imagine, one can use the internet to simply watch porn & whack oneself :D or use his skills, ingenuity to earn & bring much needed foreign exchange in to the country.

    I think, it is high time the government and the regulators stop hindering small time freelancers and internet marketers and should start supporting them by easing the process of getting their money, and should also reduce / abolish the taxes. The taxes should not be more than 10% for internet marketers / Freelancers!!

    Reply
  3. Senthil  March 17, 2011 at 03:07 PM

    I agree 100 % with that article and that has been my thoughts for some time now. The tax that the common man pays to the government is for the infrastructure, job opportunities and umpteen things that the govt provides for the common man.

    In the case of Internet marketing / Freelance Programming , the government has very little part to play in the process. The only thing the government provides is Internet connectivity and Electricity for which we pay the bills and the service taxes associated with it. Imagine, one can use the internet to simply watch porn & whack oneself :D or use his skills, ingenuity to earn & bring much needed foreign exchange in to the country.

    I think, it is high time the government and the regulators stop hindering small time freelancers and internet marketers and should start supporting them by easing the process of getting their money, and should also reduce / abolish the taxes. The taxes should not be more than 10% for internet marketers / Freelancers!!

    Reply
  4. max  March 17, 2011 at 10:33 PM

    I also 100% agree with article writer. Infect thank you very much for raising voice on behalf of us.

    Why RBI want to impose $500 restriction is simply out of my mind. We regularly receive payment for our very small projects through paypal and all money do comes in our bank account which has our PAN card attached to it. We honestly pay our taxes and file returns every year, then why RBI wants to take away our bread and butter and giving advantage to pakistan, Philippines, maxico and sri lanka countries who are now giving strong competition to us due to low cost of living in their countries.

    I request finance minister shri. Pranab Mukerji and honorable Congress chair person Smt. Sonia Gandhi and Our honorable prime minister Shri. Manmohan singh and honorable Shri. Rahul Gandhi to look into this and ease burden of poor engineers like us so that we can bring more money in country. After all we spend all this money in India and not abroad.

    By imposing such harsh regulation in such short time is only going to kill small entrepreneurs and free lancers.

    Let us build strong india.

    Reply
  5. Dinesh  March 19, 2011 at 12:15 AM

    RBI is a s**!!! Blood sucking b*s*a*d*

    Reply
  6. Pawanvir Singh Yadav  March 22, 2011 at 10:28 PM

    Government never supported us. there is no plan or offer for us. we are bringing foreign currencies in india. We pay our bills and all taxes. Doing freelancing in worldwide market is not simple thing we gotta compete with millions of people all around the world and i was happy India was beating them with better quality and cheap rate but think our own government wants us to kill by sucking more and more money from us though you will never come to know where this will go. We are not big businessmen or politicians we are taking money as our remuneration but guess it is not easy now.

    Reply
  7. Shikhar  June 09, 2011 at 07:13 PM

    Burden on white businesses and freelancers will keep increasing because government is not able to get the black money out. They themselves are actually neck deep in black money.

    Reply

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