Foreign Inward Remittance Certificate (FIRC) is a key term for anyone in India receiving payments from abroad,&nbsp; be it exporters shipping goods overseas or freelancers offering services to international clients. 

FIRC full form is Foreign Inward Remittance Certificate, and it serves as an official proof that money has been remitted into India from a foreign sourceskydo.com. In simpler terms, a FIRC is a document issued by an Indian bank to verify and record details of an incoming foreign payment – including the sender, recipient, amount, and purpose of the transactiondbs.com. 

This certificate is crucial in the Indian context as it ensures your foreign earnings are transparent, properly documented, and compliant with regulations. In this guide, we’ll explain what FIRC means, why it’s important, how it works under RBI rules, and how Indian businesses or freelancers can obtain and use FIRC effectively.

FIRC stands for Foreign Inward Remittance Certificate, and as the name suggests, it is a certificate provided by banks in India to verify a foreign currency remittance received in the country. The FIRC contains important information such as the amount received, the foreign sender’s and Indian recipient’s details, and the reason for the payment. Essentially, it’s a tangible proof of an inward remittance – functioning as a testimonial that an individual or business in India has received a payment from abroad.&nbsp;

FIRCs have historically been issued by Authorized Dealer (AD) banks whenever an export payment or any foreign inward payment came in. For example, if an exporter in Mumbai sells goods to a buyer in Europe and receives the payment in USD into her Indian bank account, the bank would issue a FIRC confirming that the foreign payment was received. This document legitimizes the transaction and is often required by various authorities for reference. Only banks licensed as Authorised Dealer Category I by the Reserve Bank of India (RBI) can issue FIRCs, since they are the ones permitted to handle foreign exchange transactions in India.&nbsp;

It’s important to note that “FIRC” is sometimes used informally to refer to similar documents like Foreign Inward Remittance Advice (FIRA) or Foreign Inward Remittance Statement (FIRS). We will discuss these terms later, but broadly speaking, all of them serve a similar purpose: proving that a foreign remittance was received. In summary, a FIRC (Foreign Inward Remittance Certificate) is the official proof of foreign money coming into India, making it an indispensable document for cross-border payments.

Whether you are an Indian exporter, a service provider, or a freelancer, obtaining a FIRC (or its equivalent advice) for your foreign earnings is very important. Here are the key reasons why FIRCs matter:

In summary, the FIRC is more than just a piece of paper – it is essential for compliance, for availing financial benefits, and for maintaining clean financial records of foreign income.&nbsp;Especially in India’s tightly regulated foreign exchange environment, this certificate (or its modern digital equivalent) becomes a cornerstone for anyone dealing with international payments.

FIRC in India: RBI Guidelines and the Switch to FIRA

It’s important to understand how FIRCs are handled in India today, because there have been regulatory changes in the past decade. Historically, banks issued a physical FIRC on security paper for every foreign inward remittance received against exports. However, since 2016, the RBI changed the process for most cases. Let’s break down what that means:

In conversations around FIRC, there are a few more terms that get frequently mentioned, one of them being eFIRC. So what exactly is <a href="https://www.skydo.com/blog/efirc-firc-brc-essentials-differences">eFIRC?</a>

Two acronyms often discussed together are FIRC and BRC. They are related but not the same thing. We’ve explained FIRC (proof of receiving foreign payment). BRC stands for Bank Realisation Certificate. Here’s how they differ and how they work together, especially for exporters:

In summary, BRC is the second step in the documentation chain for exports: first get your FIRC/FIRA (proof of payment), then that leads to a BRC (proof that payment matches an export transaction). Both are important for exporters, but they serve different (complementary) purposes.&nbsp; This decison tree will help you decide if and when will you need FIRC/BRC

This is a sample FIRC document. All crucial remittance details have been masked for security purposes. Now let’s break the content of a FIRC down: 

How to Obtain a FIRC (Procedure to Get the Certificate)

Obtaining a FIRC or the equivalent remittance certificate is not an automatic process in many banks – often, you need to request it. Here’s a step-by-step on how Indian businesses or freelancers can get their FIRC/FIRA from the bank:

<a href="https://www.skydo.com/blog/how-to-get-firc-certificate-online">Getting a FIRC</a> might sound like a hassle, but with Skydo, it's a breeze. Our fully automated payment system along with built-in partnerships with banks, ensures effortless compliance with RBI guidelines, without needing any manual intervention.

When you receive an export payment through Skydo, we automatically generate the required FIRC for you at no extra cost. Just log into our user-friendly dashboard, and you'll find your FIRC ready to download, complete with all the details you need. 

Exporting goods and services is considered Zero-Rated Supply, meaning it is subject to 0% GST. However, to claim a GST refund for the input tax credit, exporters must provide the required documents including FIRC. These documents authenticate that the business is claiming a refund because it exported services and couldn't offset its input tax credit as it would in normal domestic business. Without FIRC, claiming a GST refund may not be possible

As we surge in cross-border transactions, ensuring compliance and safeguarding against illicit activities has become a pressing concern. However, at Skydo, we believe your focus should be on advancing your business, not on grappling with compliance challenges.

With Skydo, enjoy seamless international payments, delivered promptly and without any hidden fees. But that's just the beginning! Every time you receive a cross-border payment, an auto-generated FIRC is readily available for you to download, relieving you of compliance burdens so you can devote your energy to what truly matters: driving your business forward.

What is FIRC? Learn the full form, meaning, and how Indian exporters & freelancers can get FIRC or FIRA to claim tax benefits and stay RBI-compliant.

FIRC Full Form, Meaning & Guide for Exporters

Dive into the world of FIRC. Explore the full form, importance, and process of obtaining FIRC for your international transactions

Foreign Inward Remittance Certificate (FIRC): Full form, meaning and RBI guidelines

Prashanth

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Prashanth Kumar

Filing income tax returns is usually straightforward for salaried employees – they rely on Form 16 for a neat breakdown of income and TDS, then fill out ITR-1 and they’re done. However, freelancer tax in India can be much more complex. If you’re a developer, designer, consultant, or marketer working independently, the process is not the same as for salaried individuals. Different Income Tax Return (ITR) forms apply, there are Goods and Services Tax (GST) considerations, advance tax rules, and even foreign payments handling (like FIRA documents) that add to the confusion.

But don’t worry – this single guide will help put all that confusion to rest. By the end of this blog, you will understand:

Are Freelancers in India Required to Pay Taxes?

Yes – freelancers in India are subject to income tax just like anyone else. The Income Tax Act doesn’t explicitly define the term “freelancer,” but it treats your freelance earnings as “Profits and Gains from Business or Profession” (PGBP)&nbsp;similar to income from a business or self-employment. 

In other words, if you work independently and earn money by providing services (software development, graphic design, content writing, digital marketing, consulting, etc.), you are considered a self-employed professional – essentially a freelancer – for tax purposes.

If you earn income independently by providing professional or technical services – such as writing code, designing graphics, consulting, writing content, marketing, etc. – and not as a salaried employee of a company, then you’re a freelancer. In tax terms, you’re a self-employed individual carrying on a profession or vocation that requires intellectual or manual skill. Even if the Income Tax Act doesn’t use the word “freelancer,” this is the bucket your income falls into.

You are required to file an income tax return (and pay any tax due) if your total income in a financial year exceeds the basic exemption limit. For the financial year 2024-25 (relevant to AY 2025-26), the limit is ₹2.5 lakh under the old tax regime (for individuals below 60). If you opt for the new tax regime, the basic exemption limit is ₹3 lakh.

This is the minimum threshold under the Income Tax Act for requiring a return. On top of that, the government provides rebates that effectively make income up to ₹5 lakh (old regime) and ₹7 lakh (new regime) tax-free&nbsp;In other words, under the old regime you get a ₹12,500 rebate (Section 87A) and under the new regime a ₹25,000 rebate – meaning you don’t have to pay any tax on income up to ₹5,00,000 and ₹7,00,000 respectively. 

However, you still need to file an ITR if your income exceeds the basic exemption (₹2.5L/₹3L), even if the rebate makes your net tax zero.

Absolutely. A Permanent Account Number (PAN) is mandatory for all taxpayers in India, including freelancers. You will need an active PAN to file your income tax return and comply with all freelancer tax rules in India. If you don’t have one, be sure to apply for a PAN before attempting to file your taxes.

Freelancers in India typically need to choose between two ITR forms, depending on their income and accounting method:

Note: The presumptive scheme we’re referring to is under Section <a href="https://www.skydo.com/blog/44ada-of-income-tax-act">44ADA of the Income Tax Act.</a> It applies to specified professions (including legal, medical, engineering, accountancy, technical consulting, architecture, interior design, etc.), which cover most freelance activities. If you are in one of these professions and your gross receipts are within the limits stated, you can use this simplified scheme.

What Is Presumptive Taxation (Section 44ADA)?

Presumptive taxation under Section 44ADA is a simplified tax scheme designed for professionals like freelancers. If your gross receipts from freelancing do not exceed the threshold (₹50 lakh, or up to ₹75 lakh with minimal cash transactions as noted), you can opt for this scheme to ease your tax filing. Here’s how it works:

For example, if you earned ₹10 lakh from freelancing in the year, under Section 44ADA, you can straightaway treat ₹5 lakh (50% of ₹10L) as your taxable income. You would then calculate your income tax on ₹5 lakh as per the applicable slab rates (old or new regime). You are not required to itemise or prove that you actually spent ₹5 lakh on business expenses – it’s automatically given.

However, presumptive taxation ceases to be available if your freelance receipts exceed ₹75 lakh in the year (or if you’re not in the list of professions allowed). In that case, you must switch to the regular provisions and file ITR-3. Under the regular scheme, you’ll compute your actual profit by deducting actual expenses from your income, maintain proper books, and you may need to get a statutory audit of your accounts (for instance, if your turnover exceeds ₹50 lakh for a profession, as per Section 44AB audit rules).

Note: Section 44ADA’s presumptive scheme is only for certain professions (legal, medical, engineering, architecture, accountancy, technical consultancy, interior decoration, etc.). Other presumptive sections exist for businesses (<a href="https://www.skydo.com/blog/44ad-of-income-tax-act">44AD for small businesses,</a> 44AE for transporters), but those are not applicable to typical freelancers in professional services.

If you opt for presumptive taxation (44ADA), half your income is taxable and the rest is presumed as expenses. If you feel your actual expenses are much higher than 50%, you might be better off not using 44ADA – but then you’ll have more compliance to do (books and audit). Also note that once you opt into presumptive taxation for a year, if you later opt out (say your income grows beyond the limit or you decide to maintain books for a more accurate profit), you might be barred from re-opting the presumptive scheme for the next 5 years. So choose wisely.

How to Calculate Your Freelance Taxable Income

When it comes to calculating how much of your freelance earnings are taxable, you have two options:

Here’s a comparison of the two approaches for the same income, to illustrate the difference:

As you can see, if your actual expenses are relatively low, the presumptive scheme can significantly reduce your taxable income (and paperwork). On the other hand, if your business expenses are high (well above 50% of income), you might save more tax by claiming actual expenses – but you’ll need diligent record-keeping and possibly an audit. Assess your situation to decide which route is more beneficial.

Advance Tax for Freelancers: Do You Need to Pay?

Advance tax means paying your income tax in instalments throughout the year instead of waiting until the end. The idea is to help the government get a steady revenue stream and to help taxpayers avoid a huge lump-sum payment at filing time.

Do freelancers have to pay advance tax? Yes, if your total tax liability for the year is expected to exceed ₹10,000, you are required to pay advance tax. This rule applies equally to salaried folks, freelancers, self-employed professionals, and business owners. If you’re a freelancer making a decent income, you’ll likely cross this ₹10k tax threshold and need to budget for advance tax. For example, if after calculating your taxable income you find you owe, say, ₹50,000 in income tax for the year, you shouldn’t wait until filing time to pay it – you need to pay it in instalments as the year progresses.

Special case – Presumptive Taxpayers: If you are using the presumptive scheme (44ADA), the tax laws let you pay your entire year’s tax in one go by 15th March of the financial year (instead of quarterly instalments). This is a big relief for freelancers on presumptive taxation – you can just estimate your total tax for the year and pay 100% of it by March 15, and you’re done with advance tax(Of course, you could also choose to pay in instalments earlier if you want, but the point is there’s no interest penalty as long as it’s all paid by 15th March.)

For freelancers not under presumptive scheme, advance tax is paid in four scheduled instalments during the year, as shown below:

Who needs to adhere to these? All taxpayers with a &gt;₹10,000 tax liability (except those on presumptive scheme who choose to pay all by March 15) should pay according to the above schedule. Salaried individuals often don’t worry about this because their employers deduct TDS evenly through the year. But as a freelancer, it’s on you to calculate and pay advance tax. Missing these deadlines can result in interest charges (discussed next).

What If You Miss the Advance Tax Deadlines?

If you forget or fail to pay the required advance tax by the stipulated dates (or underpay the instalments), the Income Tax Department can levy interest penalties under Sections 234B and 234C of the Income Tax Act:

These interest charges are in addition to your tax – basically a cost of not paying on time. So it’s in your best interest to stay on top of advance tax if it applies to you.

How to File Income Tax Return (ITR) as a Freelancer

Filing your ITR as a freelancer may seem daunting, but it’s quite manageable if you prepare well. Here’s a step-by-step guide to walk you through the process:

Being smart about taxes can help you hold on to more of your hard-earned money. Here are some tips to legally reduce your tax burden as a freelancer in India:

By utilizing these strategies – either the presumptive scheme or careful tax planning under the old regime – you can minimize your tax outgo and also avoid any last-minute scrambles. Always stay informed about the latest tax provisions, since rules can change with new budgets (for instance, thresholds or deductible limits may be updated).

What Happens If You Don’t File Your Freelancer Taxes?

Failing to file your income tax return as a freelancer can lead to a host of problems – some immediate and some long-term. Here are the key consequences if you miss the tax filing deadline (typically July 31 of the assessment year):

In summary, not filing (or delaying filing) your freelancer taxes can cost you money in penalties, deprive you of tax benefits, invite unwanted scrutiny, and limit your financial opportunities. It’s definitely best to file your returns on time each year, even if you think you don’t owe any tax.

Get the Most Out of Your International Freelance Income with Skydo

Handling taxes is just one part of a freelancer’s juggle. If you work with international clients, you also have to manage cross-border payments – raising invoices, following up on payments, dealing with high bank fees, unfavourable exchange rates, and obtaining the FIRA (Foreign Inward Remittance Advice) from banks for each payment. It’s a lot to handle on top of your core work.

This is where Skydo can be a game-changer. Skydo simplifies your international freelance payments by providing you with virtual foreign account details and a seamless platform. Here’s what Skydo offers to make your life easier:

By streamlining the collection of your international payments, Skydo lets you focus on your work rather than on administrative hassles. Many freelancers lose a chunk of their income in bank fees or waste time with paperwork – you don’t have to be one of them.

This tax season, give Skydo a try and see the difference it makes in managing your freelance income. It’s designed for professionals like you. Sign up for a demo and make your international freelancing smoother and more profitable!

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Export promotion schemes are government programs designed to help businesses sell their products and services in international markets. They offer several benefits to these businesses, like:

There are many such export promotion schemes in India, but most exporters are not taking advantage of these schemes. If you run an agency, SaaS company, MSME or are a freelancer with a strong ambition to grow your business globally, this blog is for you.

In this blog, we will explore the export incentives that matter in 2025 and how to use them for your business.

First: Are You an Exporter? (Most People Don’t Realise They Are)

Let's clear this confusion before we go ahead.

The simplest way to find out if you're an exporter is this: If you’re billing international clients in foreign currency, you’re exporting, even if you don’t ship physical goods.

If any of these sound like you, or even come close, you’re an exporter. In this blog, we’ll break down the top export promotion schemes available, so you can find the ones that apply to you and maximise the benefits for your business

RoDTEP (Remission of Duties and Taxes on Exported Products)

What it is: This is relevant for goods exporters only.<a href="https://www.skydo.com/blog/rodtep-scheme-rates-notifications-and-benefits"> RoDTEP</a> refunds embedded taxes and duties that are not reimbursed under any other scheme. For example, fuel tax paid at the time of transport of goods

Who can use it: Large manufacturers and MSMEs in the D2C, crafts, and electronics space can benefit from this scheme. Exporters working from SEZ or EOU areas are also covered. However, digital service exporters aren't covered currently

How to apply: Apply via<a href="https://www.icegate.gov.in/"> ICEGATE</a> during shipping bill filing

Coverage: For FY 2025–26, the scheme includeexport-promotion-schemess 10,780 product categories for Domestic Tariff Area (DTA) exports, covering items like freshwater ornamental fish and natural honey, and 10,795 categories for AA, EOU, and SEZ exports. The benefit is calculated as a percentage of the Free On Board (FOB) value and is reviewed and revised from time to time.

Disbursement Track Record: According to the same source above, as of March 31, 2025, total disbursements under RoDTEP have crossed Rs. 57,976.78 crore

RoSCTL (Rebate of State and Central Taxes and Levies)

What it is: This is best suited for apparel and textile exporters.<a href="https://www.skydo.com/blog/rosctl-scheme-benefits-eligibility"> RoSCTL</a> intends to provide a rebate on embedded taxes and make the Indian textile exports more competitive

Who can use it: This is applicable only for exporters of Apparel (Chapter 61 &amp; 62 of<a href="https://www.dgft.gov.in/CP/?opt=itchs-import-export"> ITC-HS codes</a>), like men's and boys' overcoats,&nbsp; and Made-ups (Chapter 63), like curtains and interior blinds.&nbsp;

Rate Structure: It ranges between 1.7% to 6% of the FOB value

Eligibility: Exporters must apply for the scheme within one year of the shipping bill

How to apply: You can apply for benefits under the RoSCTL scheme from the DGFT website. Remember, you need to have a valid IEC and GSTIN before applying

Cannot combine with RoDTEP: Exporters cannot claim benefits under both RoSCTL and RoDTEP schemes for the same exports.&nbsp;

What it is: This is available to MSMEs and exporters in select sectors. The<a href="https://www.skydo.com/blog/interest-equalisation-scheme-in-india"> Interest Equalization Scheme (IES)</a> provides pre and post-shipment credit to exporters at a subsidised interest rate. It reduces the cost of borrowing and gives them easy access to credit.

Current Status: The scheme has been extended multiple times and is currently available only for MSME manufacturers and exporters with benefits capped at<a href="https://resources.probe42.in/regulatory-updates/rbi-circulars/ies-pre-post-shipment-credit/"> Rs 50 lakhs for FY 2024-25</a>

Sector-Specific Coverage: The scheme covers<a href="https://mpeda.gov.in/exporters/?page_id=1840"> 410 identified tariff lines</a> for general exporters at 2% interest subsidy, while MSME manufacturers get 3% subsidy across all HS lines

How to apply: Head over to the DGFT website. Choose “Interest Equalization Scheme” from the Services dropdown. Click on “Start Fresh Application” and then follow the steps to fill it out.&nbsp;

Recent Disbursement: From April 2023 to November 2024, the government disbursed Rs.<a href="https://economictimes.indiatimes.com/news/economy/foreign-trade/exporters-demand-extension-of-interest-equalisation-scheme/articleshow/117854391.cms?from=mdr"> 2,641.28 crore</a> from the allocated budget of Rs. 2,932 crore.

What it is: This Export Credit Guarantee Corporation (ECGC) export credit insurance scheme protects Indian exporters from buyer defaults, delays, and political risk. This minimises the risk for freelancers and MSMEs entering international markets and guarantees compensation to them if the buyer defaults.

Coverage Percentage: ECGC typically pays 80-90% of the loss incurred by exporters

How to apply: You can apply for a claim from the <a href="https://www.ecgc.in/">ECGC website</a> or go through authorised agents

Claim Timeline: Claims must be lodged within<a href="https://main.ecgc.in/wp-content/uploads/2023/12/Domestic-Credit-Insurance-Policy.pdf"> 360 days from the due date of the bill or 540 days</a> from policy expiry, whichever is earlier

&nbsp;MSME Market Development Assistance (MDA)

What it is: Reimbursement on expenses for participating in international trade fairs, buyer-seller meets, and even foreign marketing collateral. The scheme covers both physical and virtual participation.

Who can use it: Freelancers and agencies can claim marketing costs when expanding overseas.

How to apply: They can apply through the<a href="https://www.dcmsme.gov.in/"> DC-MSME</a> or the export promotion councils at least 14 days before the event

Rate Structure: Financial assistance varies by the region. For developed countries, the rate is up to Rs 2.50 lakh, Rs 2.00 lakh for developing countries, and Rs 1.50 lakh for SAARC countries

Annual Event Limit: Companies can avail MDA benefits for only three events per year. Coverage is limited to one representative per company for foreign participation

Special Categories Support: Women entrepreneurs from the Northeastern regions or SC/ST category do not have to pay rent in the event.&nbsp;

What it is: Targeted at startups and digital services exporters, the Market Access Initiative (MAI) scheme covers costs for international market access like PR, trade visits, certifications, and market research. Startups can access it via DPIIT or the Startup India Hub

Covered activities: Includes marketing projects abroad, capacity building, statutory compliance support, market studies, project development, and foreign trade facilitation

How to apply: You can register your business on the <a href="https://www.startupindia.gov.in/">Startup India</a> portal. You can apply for the MAI scheme with the help of the respective Export Promotion Council (EPC) or trade body relevant to your product

Limit: You can participate in up to 3 MAI events in a year

Here's a quick snapshot of these schemes and what benefits they offer

Discontinued but Frequently Searched Export Promotion Scheme: SEIS &amp; MEIS

The following two export schemes have been discontinued. However, due to their popularity, they are frequently searched by exporters. We included these schemes to let you know what they offered, when they were discontinued, and which new schemes have almost replaced them.

SEIS – Service Exports from India Scheme

Status: Discontinued after FY2019–20.

What it offered: The<a href="https://www.skydo.com/blog/seis-guide"> Service Exports from India Scheme (SEIS)</a> provided incentives typically in the range of 3–7% of net foreign exchange earned to service exporters, including IT, marketing, and consulting. The scheme offered duty credit scrips, which the service providers could use to cover various duties and taxes.

Who benefited: Many freelancers, SaaS founders, agencies, and independent consultants were able to claim these rewards for exporting services.

Why it mattered: SEIS was a major support for small and mid-sized service exporters to help them reduce costs and improve global competitiveness.

Current situation: The scheme has not been renewed, and there is no direct replacement for service exporters. However, some gaps are partially filled by the Market Access Initiative (MAI), Interest Equalization Scheme (IES), and startup-focused programs.

What to do now: Service exporters should explore MAI support for marketing and certifications. They must check the eligibility for Startup India benefits and IES for any export-linked credit needs.

MEIS – Merchandise Exports from India Scheme

Status: Replaced by RoDTEP in 2021.

What it offered: The Merchandise Exports from India Scheme (MEIS) provided incentives typically between<a href="https://worldtradescanner.com/MEISApp3BTable2.pdf"> 2% to 5%</a> to goods exporters based on the destination country and product category. Like SEIS, the exporters were offered scrips usable for paying customs duties.

Who benefited: MSMEs, D2C brands, and traditional exporters of physical goods.

Key difference: In MEIS, the incentive was calculated as a certain percentage of export pricing, which the exporter could use to pay off import duties. With RoDTEP, the exporters can use the credit scrips to pay for embedded taxes and nothing else

What to do now: Exporters should focus on RoDTEP for goods exports and ensure proper documentation during shipping bill filing to claim benefits.

Documents You’ll Always Need to Claim Benefits

The exact documents will depend on the scheme you're applying for. Having said that, the following basic documents are almost always needed:

IEC (Importer Exporter Code): The<a href="https://www.skydo.com/blog/iec-code-apply-online"> Importer Exporter Code (IEC)</a> is a 10-digit code issued by the<a href="https://content.dgft.gov.in/Website/DGFT%20-%20IEC%20Module%20User%20Help%20File.pdf"> Directorate General of Foreign Trade (DGFT)</a> for anyone involved in exporting or importing goods and services from India. It is essential for customs clearance, receiving foreign payments, and applying for export incentives. You can apply for an IEC online through the DGFT portal by submitting documents such as your PAN, certificate of incorporation, address proof, and bank details. Typically, the IEC is processed within 1–2 working days

FIRA (Foreign Inward Remittance Advice): The<a href="https://www.skydo.com/blog/automated-firc-simplifying-international-payments-compliance"> Foreign Inward Remittance Advice (FIRA)</a> is proof that you have received a foreign currency payment into your Indian bank account. It contains important details, like the beneficiary’s name, amount received, currency, sender information, and the purpose of the remittance. The FIRA helps you to stay compliant with the regulatory requirements and claim export incentives

eBRC (Electronic Bank Realization Certificate): The<a href="about:blank"> Electronic Bank Realization Certificate (eBRC)</a> is a digital certificate issued by banks confirming that payment for exported goods or services has been received in foreign currency. Banks upload the XML file of the eBRCs directly to the DGFT portal. The DGFT confirms the details and notifies the bank after successful verification. You can later log in to the DGFT website, check the eBRC status, and take a printout when it's ready

How MSMEs Can Apply Without Getting Overwhelmed

The process of applying for benefits under different export incentive schemes can be overwhelming. Especially if you're doing it for the first time. So, here's a step-by-step guide to help you with the process:

Many inexperienced exporters also hold themselves back from claiming benefits under these schemes due to certain misconceptions. We have gathered the most popular ones to set the record straight

&nbsp;State-Level Export Incentives (Hidden Gems)

Many Indian states offer export incentives to help local businesses grow globally. These incentives are offered in the form of marketing grants, interest subsidies, and website reimbursements. Here are a few examples:

To know if your state offers similar export incentives, try out this simple step: Search “[Your State] + MSME export incentive” or visit the Industries Department website.

Make the Most of your Export Payments with Skydo

Export incentives are designed to make Indian businesses more competitive globally, but they’re only part of the picture. A lot of exporters still lose money while receiving their payments because of SWIFT charges, delays, and poor exchange rates.

We help Indian exporters,&nbsp; from large companies to sole proprietors, receive international payments with no hidden fees or delays. You get virtual accounts in major currencies, live exchange rates, automated FIRA, GST-compliant invoicing, and real-time tracking. All with one flat fee.

If you're already making the most of export incentives, it’s time to fix how you get paid too.

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A Vostro account is a bank account in Indian Rupees that an Indian bank holds for a foreign bank. It helps process international payments coming into India.

You don’t need to open or manage one yourself, but every time a client from abroad pays you, a Vostro account might be quietly working in the background. It affects how quickly you get paid, how much you lose in fees, and how easy it is to get compliance documents like FIRA or e-BRC.

In this blog, we’ll break it down simply, what a Vostro account is, how it works, and why it matters if you get paid from international clients.

“Vostro” is a Latin word, meaning “yours.”&nbsp;

In banking, a Vostro account is an account that a domestic bank in India maintains on behalf of a foreign bank, in Indian Rupees, to settle international payments. So it is essentially "your account" in "my bank". A Vostro account makes it possible for international clients to pay Indian freelancers, exporters, or businesses directly in INR.&nbsp;

Why Vostro Accounts Matter for Indian Exporters, Freelancers and MSMEs

Vostro accounts allow Indian banks to hold foreign payments on standby. Instead of going through multiple intermediate banks (which delays transfers), the funds move directly into your INR account, reducing settlement time and uncertainty.

Since Vostro transactions bypass some SWIFT intermediaries, there are fewer cuts taken out. That often means better effective exchange rates and lower fees compared to traditional SWIFT transfers.

Because the money arrives through official Vostro channels, your payment qualifies for RBI-compliant documents like FIRA and e-BRC, essential for taxes and export subsidy claims. No more manual follow-ups with the bank.

With Vostro infrastructure, you can get paid in foreign currencies like USD, GBP, EUR, even though you only hold an INR account in India. It’s the easiest way for Indian users to receive international payments.

How Does Skydo Leverage Vostro Accounts to Simplify International Payments?

You may not see it, but every time you get paid via Skydo, there’s a powerful Vostro-backed infrastructure working for you behind the scenes.

We’ve built our infrastructure on top of Vostro accounts held with globally trusted banks, like Barclays (UK/EU), Community Federal Savings Bank (US), and Digital Commerce Bank (Canada). These accounts let us receive international payments directly in local currencies and settle them to your Indian account seamlessly.

So, while most businesses and freelancers don’t ever see a Vostro account, at Skydo, it’s what keeps your payments fast, compliant, and frustration-free.

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Vostro Accounts 

You've figured out the product sourcing. Your Amazon listings are converting well. Orders are flowing in from international markets. But then someone talks about compliance documents like <a href="https://www.skydo.com/blog/automated-firc-simplifying-international-payments-compliance">FIRA</a> and<a href="https://www.skydo.com/blog/what-is-e-brc"> eBRC</a>, and to you, they might as well be words in a foreign language because you have no idea what they mean.&nbsp;

Most Amazon global sellers from India are first-time exporters. While you've cracked the export and product side of things, compliance still feels like navigating a maze with a blindfold on. You know Amazon handles the platform logistics, but RBI and GST compliance? That's still on you.

The frustrating part is how these acronyms get thrown around without proper explanation. FIRA, eBRC, FIRC – they sound similar but serve completely different purposes. Missing any of these can mess with your payments, tax filings, or even your ability to continue selling internationally.

This guide will break down precisely what FIRA and eBRC are, why you need both, how they differ, and, most importantly, how to obtain them without the usual bureaucratic struggles.

What is FIRA (Foreign Inward Remittance Advice)?

When Amazon Global Selling deposits your international sales earnings into your Indian bank account, your bank creates this document as proof that foreign funds from your overseas sales actually arrived.

Your bank or payment service provider issues FIRA every time foreign currency is converted and credited to your account. You typically need to request it from your bank when foreign currency is converted and credited to your account, and the banks generally charge a fee for issuing the same. Platforms like Skydo issue FIRA instantly, that too free of cost.&nbsp;

The document includes your details as the beneficiary, the exact amount received, the currency from which it originated, the conversion rate used, and a purpose code that explains the reason for the transfer. For Amazon sellers, this purpose code typically indicates export income.

FIRA serves as your primary evidence that you earned legitimate export income. Your chartered accountant needs it for maintaining your books. The GST department requires this information when you file returns or claim input tax credits. If you're planning to claim any government export incentives or refunds later, FIRA becomes essential documentation.

Every business receiving foreign payments needs FIRA, whether you're selling products on Amazon or providing services to international clients. There's no getting around this requirement if money is flowing from overseas into your Indian accounts.

What is eBRC (Electronic Bank Realisation Certificate)?

eBRC goes one step further than FIRA. While FIRA merely confirms that foreign money has arrived, eBRC proves explicitly that you have been paid for exports that you have already shipped out of India.

Your bank generates <a href="https://www.skydo.com/blog/what-is-e-brc">eBRC</a> after matching your export documents with the payment received. It's essentially saying "yes, this person exported goods worth X amount, and yes, they actually got paid for it." The system cross-checks your shipping bill or SOFTEX form with the incoming payment to create this certificate.

If you're selling physical products through Amazon FBA or any other export method, you need eBRC. This applies to all Amazon Global sellers regardless of scale - whether you're shipping five units to the US or 500 units to the UK, you're still classified as a goods exporter under Indian law. Even a single product sold through Amazon Global Selling to an international customer, which has earned you foreign currency, requires eBRC compliance.

eBRC unlocks several financial benefits that FIRA alone cannot. When you apply for duty drawback (to receive refunds on customs duties paid), the system requires eBRC as proof. Export promotion schemes and incentives require eBRC to verify your legitimate export earnings.

Beyond these benefits, eBRC is also a mandatory compliance requirement under the Foreign Exchange Management Act (FEMA) regulations. The RBI and DGFT require all goods exporters to file an eBRC to prove that export proceeds have been realised. This isn't optional - it's a legal obligation that comes with being classified as a goods exporter.

During GST audits or when claiming GST refunds for exported goods, officers will specifically request an eBRC. They want to confirm that your zero-rated exports actually resulted in foreign exchange earnings. Without eBRC, these processes become much more complicated, and you might miss out on money that's rightfully yours. More importantly, missing eBRC can lead to compliance violations and potential penalties.

Here's how these two documents compare across different aspects:

The primary difference lies in scope and purpose. FIRA covers all foreign payments entering India, while eBRC specifically tracks export payments.

Your bank or payment service provider creates FIRA and gives it directly to you as a PDF document. For eBRC, your bank still generates the data, but then uploads it as an XML file to the DGFT portal. You access eBRC through government systems rather than getting it directly from your bank. Skydo provides automated eBRC to Amazon Global sellers.

FIRA works for general accounting and tax purposes. Your CA uses it for maintaining books, and you need it for GST filings or as proof of income. eBRC becomes essential when dealing with export-specific benefits. Government incentive schemes, duty drawback claims, and DGFT compliance all require eBRC to verify that your exports actually generated foreign exchange for India.

Why Amazon Sellers Need Both FIRA and eBRC

Amazon global sellers fall under the category of goods exporters according to Indian law. This classification applies regardless of whether you use FBA, Easy Ship, or handle shipping yourself. You're moving physical products across borders and receiving foreign currency, which automatically triggers RBI and DGFT compliance requirements.

Your legal obligations as a goods exporter

The government requires two specific documents from every goods exporter:

How the documents work differently

Payment providers like Skydo, Wise or PingPong typically issue FIRA as proof of inward remittance. This covers the basic requirement of showing that foreign money arrived.

eBRC comes from an Authorised Dealer bank and gets uploaded directly to the DGFT portal. It serves as official proof of export realisation under FEMA regulations. Skydo has automated this process specifically for Amazon global sellers, which removes much of the manual paperwork.

Missing eBRC blocks several critical financial processes: