Paypal - 18% Tax on every transaction

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If I am receiving $5 from Mylot as payment, 18% tax would be 0.9$ that is quiet high. Today I got a mail from Paypal - that we have to add GSTIN number. And we have to pay 18% tax on every transaction which happens through Paypal. 18% tax ? For which I asked for explanation so - Here it is The 18% GST will apply to the transaction fee of PayPal which is 4.4% of the total amount that you will receive. So, it will be 18% of the transaction fee for GST plus the transaction fee itself. Take the computation below as an example. Money received: $100 USD Transaction fee: $4.4 USD (Plus the fixed fee of $0.30 USD) 18% of transaction fee (GST): $0.792 USD Total amount deducted: $5.49 USD Total amount received: $94.51 USD 18% on transaction fees and not on total amount. So here is the calculation how much we will be getting - Mylot Payment= $5 Transaction fees - 4.4% of total Amount = $0.22 Fixed Fees= $0.30 18% of Transaction fees - $0.0396 Total fees = 0.5596 So I will be getting = $4.45 Well Now Indians has to ask for higher amount to reduced the Tax amount. If you calculate 20 payouts of 5$ will give you 89$ in your bank account. but if you ask for one payout of 100$ then you will have 94$ in your bank account. Note - So seems like higher the payout higher will be your saving on Tax