Ok, where to begin. Paypal, ok I use an Indian IT firm to outsource some of the larger projects for my website and they say the Indian government dont like Indian businesses using paypal, instead they use www.cash2india.com (which when sending money can actually be done through paypal still). Thats something to think about. Now as for the taxation issues. By trade I am an Accountant, and basically what you are doing there is acting as an agent for this person. It will be classed as a trade as you are the one receiving the money and if the taxman was to see all this money under your name (regardless of the fact its also going out straight away) he is going to ask questions. There will be no tax to pay at all,that is if you are transferring ALL proceeds toy our indian friend? However, you are expected to alert the taxman of your trade, as you are not a limited company you have no reason to keep accounting records, but personally I would suggest keeping a excel spreadsheet detailing all the transactions incase you are ever questioned about it. You dont have to submit anything if you dont make any money if you are employed as your employer will file a tax return for you with your total income for the year. This is how it would work in the UK anyway :mrgreen: