Some sellers are like that and it would be nice if PP revised this. I guess they feel that with a quasi-cash payment, there is no recourse for the buyer to file for an INR.
Ran into one last month where I did not read the fine print (my mistake). So, I sent him payment via a USA based PP account.
I then got a shipping notice. Realizing I had paid for shipping 2x, I emailed the buyer, which made him aware of what transpired and he refunded.
I filed for seller non-performance and eBay sided with me saying that I was absolved from completing the transaction.
As far as I am concerned, the seller lost a sale - his problem!
Xena