Demand cut from ₹10,050 to ₹1,310
TaxSavvy for how to receive foreign payment
How to take foreign payments, the legal way.
We pick the channel, purpose code and proof so money lands clean.
How we get it done
Four steps, the same for every job. You see each one ticked.
Information
Only the documents this job needs. Upload once, or send on WhatsApp.
Discussion
The few questions that change the answer, asked once, yes or no.
Forms
We prepare and file. You stay in the loop for every OTP.
Deliverables
The filing, the acknowledgement and a written answer in FPAC.
See what you get, free
Real formats, made with dummy data.
Sample Sample ₹5.7 lakh still to come in
Sample 2 receipts, ₹3.2 lakh, have no invoice
Questions, answered the CA way
Facts, Provisions and law, Analysis, Conclusion.
Freelancer with Foreign Clients: Tax, GST, and FEMA Complete
- Facts
- India-based freelancer earning from US/UK/UAE clients: three compliance layers. Income Tax: declare foreign income, pay at slab rate. GST: export of services = zero-rated, but registration needed. FEMA: receive payment in USD via AD bank, convert within stipulated time. Get all three wrong and you have an IT notice, a GST notice, and an RBI violation.
- Provisions and law
- Sec 58 (old 44ADA); GST, Zero Rated Export; FEMA, EEFC; Sec 393 (old 195), No TDS
- Analysis
- GST myth: Many freelancers think they must charge 18% GST to foreign clients. Wrong. Export of services = zero-rated. Charge 0% GST. File LUT (Letter of Undertaking) once per year on GST portal. No GST collected from foreign client. No refund to claim. FEMA receipt deadline: Invoice raised March 1: payment must reach India by November 30 (9 months). If client delays: apply to RBI for extension. Funds beyond 9 months without RBI approval = FEMA violation. Currency conversion timing: Income recognized when received (not invoiced). Use RBI rate on date of receipt. If received in EEFC account: recognized when converted to INR. Keep EEFC account if you have USD expenses (cheaper than converting both ways). The new regime advantage for freelancers: Foreign income ₹30L → Sec 58, Income-tax Act 2025 (old Sec 44ADA): ₹15L taxable → new regime tax ≈ ₹2.1L. Old regime with Sec 123 (old Sec 80C): ₹13.5L taxable → tax ≈ ₹2.5L.
- Conclusion
- Determine if profession is in Sec 58 (old Sec 44ADA) specified list (IT, consultant, designer, generally yes)
- Open EEFC account at your bank for direct foreign currency receipt
- File LUT (Letter of Undertaking) on GST portal before raising first foreign invoice
- Raise invoice in USD to foreign client, zero GST charged
Invoicing foreign clients: Upwork, Fiverr, direct: FIRC and proof of export
- Facts
- When you receive money from a foreign client, you need proof that it was for export of service, not just a random foreign transfer (which could attract Sec 102, Income-tax Act 2025 (old Sec 68) scrutiny).
- Provisions and law
- FEMA 1999 | RBI ECB Guidelines | GST, export documentation
- Analysis
- FIRC (Foreign Inward Remittance Certificate): Your Indian bank issues this when foreign currency is credited. Contains: sender's name/country, amount, currency, purpose code. Get FIRC for every payment. Bank usually offers e-FIRC on request. Upwork/Fiverr: These platforms pay from their international entities. Get the payment breakdown showing client name, project, and amount. Platform 1099/earnings reports are useful. FIRC from your bank when money hits account. Documentation stack for every foreign payment: Invoice to client → platform earnings report → FIRC from bank → bank statement showing credit.
Stripe / PayPal / Razorpay: payment processor tax compliance
- Facts
- Payment processors are now a significant IT department data source. Stripe India reports all merchant settlements above thresholds to the IT department via SFT. PayPal India settlements appear in AIS.
- Provisions and law
- FEMA, Payment and Settlement Systems Act | IT Act, Sec 102 (old 68)
- Analysis
- Stripe Atlas / foreign Stripe: If you're collecting USD through a foreign Stripe entity (US or EU), and then repatriating to India, FEMA compliance is required. The income is taxable in India (you're a resident). Bring it in through official banking channels with proper FIRC. Razorpay settlements: Indian platform. All settlements reportable. If you have significant Razorpay volume (₹10L+/year) and it's not in your ITR, you will get a notice.
GSTR-1: Outward Supplies Return (Due 11th)
- Facts
- GSTR-1 is the source of truth for the GST system. It feeds your customers' GSTR-2B, which they use to claim ITC. File it wrong or late, your customers lose ITC credit, they call you, you lose the client. Every B2B invoice must be declared invoice-by-invoice.
- Provisions and law
- Sec 37; Rule 59; Sec 37(3); Rule 59(6); Notification 89/2020
- Analysis
- What goes in GSTR-1 table by table: Table 4A: B2B invoices (every invoice to a GSTIN holder, must have buyer's GSTIN, invoice number, date, taxable value, GST amount). Table 5: B2C interstate invoices above ₹2.5L (state-wise). Table 6: Exports, type of export, shipping bill number if zero-rated. Table 7: B2C supplies (domestic, below ₹2.5L interstate or any intrastate). Table 8: Nil-rated/exempt/non-GST supplies. Table 9/10: Amendments to previous months' invoices. Table 11: Advances received. HSN summary (Table 12): If turnover above ₹5Cr: 6-digit HSN mandatory. ₹1.5Cr to ₹5Cr: 4-digit HSN. Below ₹1.5Cr: 2-digit HSN. From FY 2021-22: all B2B invoices must carry HSN/SAC code. Wrong HSN = input GSTR-2B data for buyer is wrong → buyer's ITC is blocked. Why GSTR-1 accuracy matters for your client: Every B2B invoice you declare in GSTR-1 flows into your buyer's GSTR-2B automatically.
- Conclusion
- Compile all outward invoices for the month: B2B (with buyer GSTIN), B2C, exports, debit/credit notes
- Verify every B2B invoice has: correct buyer GSTIN, correct invoice number/date, correct HSN/SAC, correct tax amount
- Check: any amendments needed to previous months' invoices? Declare in Table 9/10
- Check: any exports in the month? Attach shipping bill number and Bill of Lading details
How to take foreign payments, the legal way.
A Chartered Accountant handles it. Fixed price, told before you pay.
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