What is a FIRC and why is it important for freelancers?

A Foreign Inward Remittance Certificate (FIRC) — increasingly issued as an e-FIRA — is your AD bank's confirmation that you received funds from abroad in convertible foreign exchange. It is the primary FEMA proof of export realisation, supports zero-rated GST treatment and substantiates foreign income in your ITR (Schedule FSI).

What is the purpose code for software/consultancy services?

Common RBI purpose codes include P0802 (software consultancy / implementation), P0807 (off-site software exports), P1006 (business and management consultancy) and P1004 (other professional services). The AD bank applies the correct code based on the invoice and contract. Wrong purpose codes can trigger FEMA scrutiny — we review each remittance.

What happens if foreign payment comes via PayPal or Wise?

PayPal, Wise, Stripe and Payoneer all settle into your Indian bank in INR via a partner AD bank, which issues an FIRC/FIRA in aggregate. You still need the underlying invoice, contract and FIRC for FEMA and GST purposes. We help reconcile platform statements with bank credits and FIRC documentation.

Invoicing & Remittance

Relevant for:For Freelancers For Solopreneurs

International Invoicing and Foreign Remittance Support for Indian Freelancers

Every USD, GBP or EUR payment from an overseas client must be properly routed through an AD-category bank, documented with a FIRC or FIRA, and reconciled with your GST returns and ITR. We handle the documentation framework so your foreign income is clean, FEMA-compliant and audit-ready.

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What's Included

Invoice template design — USD/GBP/EUR with GSTIN, LUT reference and SWIFT details

AD-bank (Authorised Dealer) coordination for purpose code and FIRC

FIRC / FIRA collection and annual documentation file

FEMA compliance review — service export realisation within 9 months

Foreign income reconciliation — GSTR-1, Form 26AS, AIS and bank statement

ITR reconciliation — Schedule FSI and Schedule TR (DTAA relief where applicable)

Multi-platform payment support: SWIFT, Wise, PayPal, Stripe, Payoneer — FEMA treatment

Our Process

STEP 1

Setup

Invoice template and payment-channel mapping.

Week 1

STEP 2

AD-Bank & FIRC

Purpose code confirmation and FIRC collection per remittance.

Per remittance

STEP 3

Monthly GST Recon

Zero-rated supplies validated in GSTR-1.

Monthly

STEP 4

Annual ITR Recon

Foreign income mapped to Schedule FSI / TR.

Pre-ITR

STEP 5

Document File

FIRC archive maintained for 8-year retention.

Ongoing

Documents Required

GSTIN and LUT acknowledgement
Bank account with an AD-category bank
Client contracts and statements of work
SWIFT advices and FIRC / FIRA copies
Platform statements (Wise / PayPal / Stripe / Payoneer)
GSTR-1 extracts and Form 26AS / AIS

Key Statutory References

Item	Reference
FEMA Realisation Period	FEMA 1999, Regulation 9 — 9 months for service exports
Purpose Codes	RBI Master Circular — Purpose Codes for Remittances
FIRC Issuance	RBI guidelines — AD-category bank issuance
Foreign Income in ITR	Schedule FSI / Schedule TR, Income Tax Rules 1962
DTAA Relief	Section 159 (formerly sections 90 / 90A), Income-tax Act, 2025

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Frequently Asked Questions

Related Services

GST Export of Services — LUT Freelancer Tax Compliance FEMA / RBI Compliance For Freelancers

Guides & Resources

GST for Freelancers Billing Foreign Clients

How to invoice foreign clients and comply with GST and FEMA.

Read →

FEMA Compliance Guide

Repatriation rules for freelancers receiving foreign payments.

Read →

FEMA/FDI Common Mistakes & Timelines

Reporting errors that affect freelancers with foreign income.

Read →

Clean, FEMA-compliant foreign income documentation

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Scope of services and important information

This page describes services offered by RTA & Associates, Chartered Accountants. It is published for general information and does not constitute tax, legal, financial or investment advice, nor an offer or solicitation to provide services in any jurisdiction where we are not qualified to do so.

Any engagement is governed by a separate written engagement letter, which sets out the scope of work, the deliverables, the fees and the limits of our responsibility. Nothing on this page forms part of that engagement or varies its terms.

Descriptions of timelines, processes, costs and outcomes are indicative and depend on your specific circumstances and on third parties — regulators, exchanges, banks and counterparties — whose timelines we do not control. Statutory and regulatory requirements change; the current position should be confirmed before you act.

We are Chartered Accountants. Where a matter requires legal advice, advice on the law of a country other than India, or a regulated investment recommendation, we will say so and you should take advice from an appropriately qualified and licensed adviser in the relevant field and jurisdiction.