As an Indian exporter, navigating the complexities of international transactions and compliance can feel like solving a complex puzzle. Today, we'll explore a crucial piece of that puzzle: FIRC

FIRC full form is Foreign Inward Remittance Certificate. It is a document issued by banks as proof of receiving international payments. Over the years, regulations around FIRC have changed significantly, creating confusion and mystery around this important document. Let's clear the air and decode the what, who, and why of FIRC.

FIRC or Foreign Inward Remittance Certificate serves as a proof of foreign money transfer for exporters in India. Until 2016, <a href="https://rbidocs.rbi.org.in/rdocs/FEMAMASTER/PDFs/1061.PDF">AD (Authorised Dealer) Category I Banks</a> were authorised to issue FIRCs to exporters for receiving payments from foreign sources. This document was essential for exporters to obtain after each cross-border payment. It served not only as proof of payment receipt but also as a crucial document for claiming export-related incentives, such as tax exemptions on foreign currency payments received in India.

As we've covered, the full form of FIRC is Foreign Inward Remittance Certificate and for a long time it served as proof of export income from abroad. However, with changing regulations, the function of FIRC has also changed significantly. Let's take a look:

FIRA is often still referred to by its old name, FIRC. While both documents serve the same purpose, FIRC is technically only issued for returns on&nbsp;Foreign Direct Investment (FDI )or Foreign Institutional Investment (FII). For all other export collections, FIRA/BIRC is what you need.

For clarity, we'll use the term FIRC moving forward, but it refers to FIRA throughout.

Anyone receiving foreign payments needs FIRC.&nbsp; Beyond goods and service exporters engaging in international trade, many individuals and entities may receive international payments without realising it.&nbsp;

Overall, the following typically require a FIRC:

Beyond compliance, here’s why FIRC is crucial for exporters:

FIRCs are issued by AD Category I banks. You can contact your bank to get your FIRC after receiving your foreign payment. <a href="https://www.skydo.com/blog/how-to-get-firc-certificate-online">Alternatively, you can also use platforms like Skydo to get your FIRC instantly after every payment.&nbsp;</a>

Who Needs FIRC and Why It’s Important for Exporters?

FIRC (Foreign Inward Remittance Certificate) is essential for anyone receiving foreign payments, including:

Exporters, in particular, rely on FIRC for two key reasons:

FIRC is issued by Authorized Dealer (AD) Category I banks, and businesses can obtain it directly from their bank. However, it is usually a cumbersome process requiring multiple follow-ups and most banks charge around INR 500 to issue each FIRC.&nbsp;In contrast, platforms like Skydo offer a fast, hassle-free solution, providing an instant FIRC for free after every foreign payment—no manual requests, no extra costs.

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: 

Receiving your export payment directly through your bank can make obtaining an FIRC a lengthy process. You need to submit a request to the bank, and the bank typically takes 7-15 days to provide the FIRC. You may also need to follow up multiple times, and banks often charge at least INR 400 to issue the FIRC, depending on the institution.

<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. 

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>

What is the difference between eBRC and FIRC?

Generally speaking, e-BRC applies mostly to goods and software exporters (under <a href="https://stpi.in/en/home?no_follow=true/">STPI</a>). If you are one of them, you can use this simple decision tree to understand which documents you will 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.

FIRC full form is Foreign Inward Remittance Certificate. Learn what FIRC is, its importance for exporters and freelancers, and how to obtain it easily

FIRC: Full form, meaning and RBI guidelines

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

Form W8BEN and Form W8BEN-E are crucial for Indian residents and businesses earning income from U.S. clients. These IRS forms ensure you don’t pay more tax than necessary by letting you claim reduced withholding rates under U.S. tax treaties.

For individuals, Form W8BEN is the go-to form, while businesses need Form W8BEN-E. Though they might seem complicated at first, filling them out is much easier than it looks.

In this article, we’ll walk you through how to complete these forms, highlight common mistakes to avoid, and share tips to simplify the process.

What is Form W8BEN for Indian Freelancers?

If you're an Indian freelancer working with U.S.-based clients, Form W8BEN is something you’ll likely need to fill out. It’s a declaration that confirms you are a resident of India and not subject to U.S. income tax withholding. Under the India-U.S. Tax Treaty, this form helps you claim a reduced (often 0%) withholding rate on payments received from U.S. clients. You submit the completed&nbsp;Form W8BEN directly to your client, not the IRS, and it’s typically valid for three years.&nbsp;

&nbsp;How to Fill Form W8BEN India: Step-by-Step Guide

Form W8BEN, also known as the "Certificate of Foreign Status," is for Indian individuals earning certain types of income from the U.S., including royalties or passive income.

This form proves you're a foreign person, Indian resident in this instance and ensures your income is taxed correctly. You’ll need to submit it when asked by the payer or withholding agent, basically your client or employer in the US. even if you’re not claiming a reduced tax rate or exemption from the standard 30% withholding.

This is how a Form W8BEN&nbsp; looks like:

Part I: Identification of Beneficial Owner (India)

This section of&nbsp;Form W8BEN contains your personal details as an Indian resident earning income from the U.S. Here’s how to complete it:

This is the most critical section of Form W8BEN. It allows you to claim tax treaty benefits under the <a href="https://www.irs.gov/pub/irs-trty/india.pdf">India-U.S. Tax Convention </a>to reduce or eliminate U.S. withholding tax.

Submit the completed form to your employer or client.&nbsp;You can also download <a href="https://www.irs.gov/pub/irs-pdf/fw8ben.pdf">Form W8BEN right here</a>

Form W8BEN-E for Indian Businesses: Complete Guide&nbsp;

Form W8BENE serves a similar purpose as the Form W8BEN but is specifically designed for Indian businesses and entities rather than individuals. Like individuals, income earned by foreign entities from U.S. sources is also typically subject to a 30% withholding tax. However, by submitting a correctly completed W8 BENE, Indian businesses will qualify for a reduced withholding rate as per the India-US Income tax treaty.&nbsp;

Here’s what the first page of Form W8BEN E looks like:

This section of Form W8BEN-E captures your business details:

Part II: Disregarded Entity or Branch Receiving Payment

This section applies only to Foreign Financial Institutions. For most Indian businesses, you can skip this section.

&nbsp;Part III: India-US Tax Treaty Claims

This is the most critical section of Form W8BEN-E, as it deals with claiming tax treaty benefits under the <a href="https://www.irs.gov/pub/irs-trty/india.pdf">India-U.S. Tax Convention.</a>

Most of the remaining sections of&nbsp;Form W8BEN-E deal with specific entities like financial institutions, banks, and international organisations. These sections don’t apply to regular Indian businesses providing services to U.S. clients.

Filling out the W8BEN E can feel intimidating at first, but when you focus only on the sections relevant to your business, it becomes much simpler. Take it step by step, and you’ll be done in no time!

India-US Tax Treaty Benefits: Things to Note

While filling out Form W8BEN and W8BEN-E, freelancers have to quote the specific articles of the India-US tax treaty to claim exemption from withholding tax . Here's exactly how Indian freelancers and businesses can leverage specific treaty articles for maximum savings.

Article 15: Independent Personal Services (For Freelancers)

Perfect for Indian freelancers earning from US clients. Benefit: 0% withholding tax instead of 30%.

Real example: Mumbai freelancer Priya earns ₹40 lakhs annually from US clients. With Article 15, she saves ₹12 lakhs in US taxes yearly.

Article 7: Business Profits (For Indian Companies)

Covers Indian businesses providing services to US clients. Benefit: 0% US tax on business profits.

Real example: Bangalore web development firm earns ₹83 lakhs from US projects. Treaty saves them ₹25 lakhs annually in withholding taxes.

Form W8BEN and W8BEN -E Download &amp; Submission Process

Always download the latest version of Form W8BEN from the official<a href="https://www.irs.gov/forms-pubs/about-form-w-8-ben"> IRS website</a> to avoid delays. Outdated forms are one of the most common reasons Indian freelancers and investors face processing issues.&nbsp;&nbsp;

Use only v<a href="https://www.irs.gov/forms-pubs/about-form-w-8-ben">erified IRS.gov</a> links for both the form and instructions. These resources include tax treaty guidance specific to Indian residents and help ensure you're filling the form correctly.
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Common Form W8BEN&nbsp; and W8BEN-E Filing Mistakes to Avoid (India)

Filling out W8 Forms as Indian residents or businesses isn't really complicated. However, it is important to avoid some common mistakes to&nbsp;ensure your submission is accurate and hassle-free:

There are five types of W8 Forms, but most Indian freelancers and businesses will need Form W8BEN or Form W8BEN-E.

Choosing the correct form based on your status, individual or entity, is essential to avoid payment delays or incorrect tax withholding. Always double-check before submitting.

It is important to share your Tax Identification Number on the W8 Form. If you don’t have a U.S. TIN, use your PAN or GSTIN as your FTIN. Ensure the number matches your official records.

It is important to quote the correct tax treaty clause to be able to claim reduced tax withholding or exemption.&nbsp;For Indian residents, cite Article 15 (Independent Personal Services) or Article 7 (Business Profits) of the India-U.S. Tax Treaty. Clearly state your claim for a reduced or 0% withholding rate.

Selecting the wrong entity type or failing to declare your financial status can become a problem. Most Indian businesses are Active NFFE (Non-Financial Foreign Entity). Select the correct classification to avoid rejection.

W8 forms should always be submitted to the withholding agent requesting it, not directly to the IRS.

W8BEN vs W8BEN-E: Key Differences for Indians

Both <a href="https://www.skydo.com/blog/w8-form-explained-what-indian-residents-must-know">W8 forms</a> are IRS forms that Indian residents and companies earning from the US, must complete to qualify for a reduced U.S. tax withholding rate on income earned from U.S. sources. The main difference is that Form W-8BEN is for Indian individual residents, i.e freelancers, remote workers earning from the US, while Form W-8BEN-E is for Indian businesses earning from the US. Additionally,&nbsp; since Form W-8BEN-E is for businesses, it is more detailed than W-8BEN.&nbsp;

Receiving payments from U.S. clients can be complicated. Banks often charge hidden fees, add forex markups, and require multiple follow-ups to ensure payments arrive on time.

Skydo offers a simpler solution. With a virtual U.S. account, your clients can make local payments, eliminating SWIFT charges. Payments are converted at live exchange rates, ensuring you keep more of what you’ve earned.

If you need help filling out your W-8 form, our support team is here to assist. Once completed, receiving payments from the U.S. becomes straightforward and efficient with Skydo.

Focus on your work, not payment hassles. Let Skydo handle the rest.

How to Fill W-8BEN and W-8BEN-E Forms: A Guide for Indian Freelancers & Businesses

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When was the last time you couldn’t buy something just because you forgot your wallet at home? Or had to rush to the bank first thing in the morning to send money home? Those days are quickly fading with digital payments in India, which reached<a href="https://pib.gov.in/PressReleasePage.aspx?PRID=2110405"> 18,000</a> crores in transaction volume in January 2025. With so much money moving digitally, tracking each transaction becomes crucial. That’s where UTR numbers come in.

These unique codes are like digital fingerprints of your transactions. It helps you and your bank to trace every rupee you send or receive. In this blog post, we’ll understand the meaning of UTR numbers, their format in NEFT, RTGS, and GPay, and why they matter for anyone using digital payments in India.

The full form of UTR Number is Unique Transaction Reference Number. It is a special code for every digital money transfer in the Indian financial system. Think of it as a tracking number for your transaction, similar to a courier package tracking to know its location during transit. You can find the UTR Number for a specific transaction in your bank statement, banking, and UPI app. More on this later.

The main purpose of a UTR number is to help banks and you keep track of your transactions. If you ever need to check the status of a payment or resolve an issue, a UTR number is what you’ll need.

UTR numbers are used in several payment systems in India, including NEFT, RTGS, and UPI. We will cover the UTR format in each of these systems in a while

Here are the four reasons why UTR numbers are useful to you and your bank

Both you and your bank can check the current payment status of your transactions using UTR to see if the payment is still being processed or has failed. The value of UTR is felt the most when you want to know the status of a specific transaction from a long, unending list. Instead of manually scanning through the list, you can search for the UTR and know the status in seconds

Resolving failed or delayed transactions

Imagine you send money to a friend, but they don’t receive it. By sharing the UTR number with your bank, they can quickly trace what happened and share an update. Whether the money is stuck, delayed, or reversed, you can communicate with your bank and resolve the issue quickly.&nbsp;&nbsp;

Reference for customer support and disputes

In the event of a payment issue, you can share the UTR number with the bank's customer support team as a reference. It will help them pull up the transaction details and act on them faster.

Essential for accounting and reconciliation

For businesses, keeping track of hundreds or thousands of payments is complicated. With UTR numbers, you can match each payment in the bank statement with invoices or receipts. For example, an accountant can use the UTR number to confirm that a customer’s payment has been received and recorded correctly.

UTR Number Formats Across Payment Systems

UTR numbers follow specific formats depending on the payment system. Let’s break down how UTR numbers are structured in NEFT (National Electronic Fund Transfer), RTGS (Real Time Gross Settlement), and UPI.

Here, “SBIN” is the bank code, resembling the first four characters of the IFSC code.&nbsp; “1” is the server code, “24” is the year 2024, “123” is the 123rd day of the year, and “00012345” is the unique sequence.

Here, “HDFC” is the bank, “R” is RTGS, “9” is the channel code for RTGS, “20240506” is the date (6th May 2024), and “12345678” is the unique sequence.

UPI does not have a fixed format like NEFT or RTGS, but each transaction gets a unique alphanumeric code, such as 312345678901 or AXIS123456789. This ID is generated by the payment app or bank and is used to trace and verify UPI payments.

Here’s how you can find out the UTR Number of a transaction:

Bank Statements and Passbooks: The easiest and quickest way to find the UTR Number is by checking the financial statements. Every transaction in your bank statement or passbook will have a UTR number listed under “Ref No,” “Reference Number,” or “UTR No” alongside the transaction details

Internet and Mobile Banking: Log in to your mobile banking app or the bank's online portal. Go to your transaction history section or account statement, and select the payment you want to check. The UTR number will be shown in the transaction details, usually labelled as “Reference Number” or “Transaction ID”

UPI Apps (GPay, PhonePe, Paytm): Open your payment mobile app, head to the transaction history, and tap on the specific payment. You’ll see the UTR number or Transaction ID in the transaction details

The UTR number in Google Pay (GPay) is displayed as UPI Transaction ID consisting of 12 digits. Imagine you are sending money to a friend and want to check if it went through.

Here are the steps you must follow to find the UTR number in GPay:

How to Track Your Transactions With UTR Number?

Here are two simple ways to track the transaction status using the UTR Number:

If the above option didn’t work for you or you prefer another way, then you can contact the bank’s customer support team. You can call them on the helpline or write them an email mentioning the UTR Number. They will let you know the transaction status of your fund transfer.&nbsp;

UTR numbers are essential to keep your digital transactions traceable and easy to verify. By tracking your UTR numbers, you can quickly resolve payment issues and maintain accurate financial records.

When it comes to international payments, not knowing where your money is can be stressful.

They often take time, and traditional systems rarely give you a clear view of what’s happening in between. That’s why we’ve added a payment tracking feature right into the Skydo dashboard, so you can check the status of your payment anytime, without needing to follow up or chase anyone.

With Skydo, staying in control of your payments is just simpler.

Try it out and see how smooth international payments can really be.

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Receiving cross-border payments from your international clients doesn't necessarily have to be complex. To receive international payments in India, you can use methods such as bank wire transfers, global payment gateways (PayPal/Razorpay), or <a href="https://www.skydo.com/blog/virtual-account-numbers">virtual international accounts</a> ( provided by platforms like Skydo), depending on cost, speed, and convenience.

In this blog, we go on to break down each method, compare fees, timelines, and real-world use cases, so you can choose the best solution for your business. (Updated for 2025)

Methods to Receive Foreign Payments (USD/EUR) in India.

Here are the main ways to receive payments from abroad&nbsp; in India

Before deciding on your preferred way, it is important to evaluate each method on parameters like timeline, fees, etc to find out which fits your needs the best. So let's understand these parameters in some detail:

How to Receive International Payments in India: Step-by-Step

Things to Note Before Receiving International Payments in India

Unfortunately, cross-border money transfers, especially payments, aren’t as straightforward as domestic ones. Different countries have different regulations, and multiple financial institutions are involved in the process as well. 

So here are a few things to watch out for before receiving payments from abroad:

In India, we’ve become accustomed to instant payments thanks to UPI, just a quick scan, and it's done. However, international payments are a different story, and the settlement time primarily depends on the payment mode. For example, banks may take upto 7 business days to settle your payment, while international virtual accounts can do it within 48 hours.

International payments often undergo strict scrutiny due to concerns around money laundering and terror financing. Hence, when choosing your international payment platform, check if it is approved by the RBI, <a href="https://www.skydo.com/blog/all-you-need-to-know-about-firc-a-complete-guide">provides FIRA</a>&nbsp;and has the necessary security certifications. For example, In January 2025, Skydo received <a href="https://economictimes.indiatimes.com/tech/startups/skydo-secures-rbi-licence-to-offer-cross-border-payments/articleshow/117413507.cms?from=mdr">in-principle authorisation from the Reserve Bank of India (RBI) </a>to operate as a Payment Aggregator-Cross Border (PA-CB) entity, ensuring the highest level of compliance and security.

Charges are one of the key factors when deciding on how to receive international payments in India. You need to be aware of the fees associated with each payment platform and make sure there are no hidden fees that are sneaking in. For example, most platforms, including banks, apply a markup on the ongoing exchange rate. If the actual rate is 1 USD = ₹84, banks might offer ₹82, with the small difference adding up over multiple transactions. Similarly, platforms like<a href="https://www.skydo.com/blog/paypal-in-india-charges-review-alternatives"> PayPal </a>apply a currency conversion fee of around 4%, along with a<a href="https://www.skydo.com/blog/paypal-transaction-fees-india"> transaction fee </a>of 4.4% plus a fixed component. These charges can add up, especially for frequent or high-value payments. While such fees are standard across many international payment providers, understanding the breakdown helps you compare options and choose the most cost-effective method for your business needs.

Do I Have to Pay Tax on International Payments in India?

Exports in India are considered <a href="https://taxsummaries.pwc.com/india/corporate/other-taxes#:~:text=Export%20of%20goods%20and%20services,to%20fulfilment%20of%20prescribed%20conditions">zero-rated supplies,</a> meaning you don't have to pay <a href="https://www.skydo.com/blog/how-does-gst-affect-foreign-payments">GST on your export income </a>if you receive your payment in foreign currency.&nbsp;

However, note that regardless of whether you receive a salary from an overseas employer or payments from foreign clients as a freelancer or business, your income will be taxed in India based on the applicable income tax slab rates.

&nbsp;Best Way to Receive International Payment in India

There’s no one-size-fits-all answer to the question of how to receive international payments in India, it all depends on what matters most to you. Whether it’s faster settlement, favourable exchange rates, easy compliance, or other factors, the right option will vary.&nbsp;

 In this section, we’ll break down the different payment methods based on these key parameters to help you decide which is the best way to receive international payments in India.&nbsp;

Banks are often the traditional answer to the question of how to receive international payments in India, and online banking has made money transfer services more convenient as well. &nbsp;However, here are a few things that you need to know before deciding if banks are the right fit for you to receive international payments:

<a href="https://www.skydo.com/blog/international-wire-transfer-all-you-need-to-know">International bank wire transfers </a>can take upto 5 business days or even longer&nbsp;due to reasons like multiple intermediary banks, bank holidays, incorrect details etc.&nbsp;

Banks issue<a href="https://www.skydo.com/blog/all-you-need-to-know-about-firc-a-complete-guide"> FIRA for every foreign payment,</a> but it is not a default or free service. You have to follow up with your bank to get your FIRA and banks often levy a fee for the same.&nbsp;Axis Bank, for example, charges INR 250 for every FIRA and an additional INR 100 for a duplicate FIRA.

Bank fees for international payments include a <a href="https://www.skydo.com/blog/swift-money-transfer-ultimate-guide">SWIFT fee,</a> which, while levied on the sender, is often passed on to the receiver. It might cost your client anywhere around USD 15-50 to send the international payment and more often than not, it will be passed on to you.

Further, as we've mentioned, banks mostly levy a <a href="https://www.skydo.com/blog/forex-markup-fee-explained">forex markup,</a> giving you a lower exchange rate than the market exchange rate.&nbsp;Let’s say you receive $5,000, and the real exchange rate is 1 USD = ₹84, so you expect ₹420,000. Instead, the bank offers a lower rate of ₹82 per USD, leaving you with ₹410,000, a loss of ₹10,000 on just one transaction.&nbsp; Beyond SWIFT and forex fees, banks tend to charge extra fees for various services. For example,&nbsp;<a href="https://www.axisbank.com/Docs/default-source/default-document-library/schedule-of-charges-for-foreign-exchange-transactions.pdf">Axis Bank&nbsp;charges</a> ₹250 for issuing a FIRA and ₹500 to track SWIFT payments.

If you’re running an online business, especially in e-commerce, payment gateways can make receiving money from abroad a lot simpler. They let your international customers pay using cards, wallets, or whatever method works best for them. In this section, we’ll walk you through two popular options, PayPal and Razorpay, and break down how they work, how long payments take, what they charge, and what to keep in mind.

If your client pays you via PayPal, the amount appears in your PayPal account almost instantly, but it can take up to 5 business days to reach your bank account.

PayPal provides a monthly digital FIRA to businesses and freelancers. This FIRA covers all international transactions from the previous month, and it is only available by the 15th of the subsequent month.

<a href="https://www.skydo.com/blog/paypal-transaction-fees-india">PayPal fees</a> for receiving international payments include a 4.40% transaction fee, plus a&nbsp;fixed fee&nbsp;depending on the currency of the transaction, along with 4% currency conversion fee to the prevailing exchange rate.&nbsp;For example, if the current market rate is INR 84 per USD, PayPal’s effective exchange rate would be 4% less, which is INR 80.64.

Razorpay typically settles international payments within 1 business day, making it a quick option for businesses that need faster access to funds.

They provid<a href="https://www.skydo.com/blog/importance-of-fira-for-freelancers">e FIRA (Foreign Inward Remittance Advice)</a> to help meet compliance requirements, something that’s especially useful for exporters and service providers.

Razorpay charges a platform fee of 3% per international transaction, plus applicable taxes.

Virtual International Bank Accounts&nbsp;

New-age fintech platforms like Skydo,<a href="https://www.skydo.com/blog/transferwise-india-features-benefits-pros-cons"> Wise</a>, and <a href="https://www.skydo.com/blog/payoneer-payment-gateway-features-fees">Payoneer </a>are making cross-border payments seamless with international virtual accounts. These platforms provide users with<a href="https://www.skydo.com/blog/virtual-account-numbers"> virtual bank accounts</a> in countries like the US, UK, and Australia. Clients in these countries can send payments to these virtual accounts as local transfers, avoiding the hassle and cost of international transfers.

The platforms then consolidate these local payments and transfer them to the recipient’s personal bank account.&nbsp; Let's explore whether virtual accounts could be the answer to how to receive international payments in India.

Once the payment hits your virtual account, it’s quickly transferred to your personal bank account. For example, Wise deposits funds within 0-2 business days, while Payoneer and Skydo mostly settle payments within 24-48hours,&nbsp;all much faster than traditional bank transfers..

Most platforms offering international virtual accounts in India&nbsp;also provide FIRA to their users.&nbsp;While Wise charges a fee for issuing FIRA, both Payoneer and&nbsp;Skydo offer it free&nbsp;and instantly, making the process smoother and more convenient for users.

Since virtual bank accounts skip&nbsp;SWIFT transfers,&nbsp;no SWIFT fees apply. However, each platform has its own charges:

For a detailed breakdown, check <a href="https://www.skydo.com/blog/payoneer-fees-india-guide" target="_blank">Payoneer’s fees here.</a>

<a href="https://www.skydo.com/blog/wise-transfer-charges-in-india" target="_blank">You can read more about Wise’s pricing right here.&nbsp;</a>

Remittance Platforms like Wise and Western Union

P2P transfer services like Wise and Western Union let individuals abroad send money directly to Indian bank accounts, with conversion at competitive rates and delivery usually within a day. Wise supports multiple currencies and offers transparent fees, while Western Union provides both bank transfers and cash pickup options at thousands of locations. These services are best for personal remittances, not business payments, due to compliance and documentation limits.

Google Pay, through its partnership with international money transfer services like Wise and Western Union, now allows users in India to receive cross-border transfers directly into their bank accounts using UPI.&nbsp; While convenient for individuals, this option isn’t designed for business payments or freelancers, and transaction limits may apply as per RBI guidelines.

Which platform should you choose to receive international payments in India?

If you’re a large business handling high volumes of cross-border payments, banks might be the answer to how to receive international payments in India. They often offer competitive exchange rates and personalized services that smaller clients might not receive.

Many businesses and freelancers also prefer PayPal for its global credibility and acceptance, offering a payment option their international clients are familiar with.

For individual freelancers and small to medium businesses, international virtual accounts are often the most practical choice. These fintech platforms provide a seamless payment experience without the hassle of dealing with banks. By bypassing the SWIFT network, they eliminate SWIFT fees and typically offer faster settlements. Many platforms also include FIRA to simplify compliance. However, before deciding on how to receive international payments in India, carefully review their fees, foreign currency conversion rates, and customer support to ensure they meet your needs.

Here's a quick comparison chart to help you decide the best way to accept international payments in India based on your needs:

Take Rohan, a freelancer in India who <a href="https://www.skydo.com/blog/how-to-receive-money-from-usa-to-india">regularly invoices clients in the US </a>and UK. For his $5,000 project payment, platforms like Skydo allow him to receive funds quickly, with zero hidden forex markups and instant access to FIRA,&nbsp;meaning he keeps more of what he earns, and compliance is hassle-free. This transparency and speed are ideal for freelancers and small businesses managing frequent, mid-sized payments from abroad. On the other hand, for large enterprises handling high-value transactions, often in the hundreds of thousands, traditional banks, with their dedicated relationship managers and tailored corporate solutions, can sometimes offer negotiated rates or advanced treasury services better suited to those needs.

In short, while platforms like Skydo are a game-changer for small businesses and freelancers, banks may still be preferable for companies with very large, complex payment volumes.

Accept International Payments in India with Skydo?

While there are several ways to receive international payments in India, virtual bank accounts are quickly becoming the preferred option for businesses and freelancers due to their simplicity and affordability. With Skydo, setting up an international account takes just five minutes, helping you easily do business in markets like the US, Europe, Singapore, and Australia.

Skydo streamlines your payments by offering live Forex rates with no hidden fees or currency markups. Take the <a href="https://x.com/0xmarvelmaniac/status/1918939616188780960">example of Ashutosh,</a> a developer who saved significantly with Skydo, as compared to receiving his payments via banks

Further, to keep things hassle-free and compliant with RBI regulations, you’ll get instant FIRA downloads after every transaction. Plus, each user benefits from a dedicated representative who’s ready to provide guidance and support whenever you need it.

If you're looking to avoid high fees on international transfers and make your foreign payments seamless and compliant, Skydo is the perfect solution!

How to receive international payment in India

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When you export from India, regardless of the product or service, the invoice you send matters, not just for your client but also for GST compliance, customs documentation, and foreign exchange tracking.&nbsp;

One field that often confuses many new exporters and freelancers is the HSN code (also known as Harmonised System of Nomenclature). You may wonder:&nbsp;

Will it impact my GST (Goods and Services Tax) refund?

This blog clearly breaks down the concept of HSN code, the importance of HSN, and provides action steps to help you prepare your export invoices correctly and avoid delays.

What Is the Full Form of HSN? (And Why It Exists)

HSN full form is Harmonised System of Nomenclature. It's a globally accepted uniform classification system that identifies and categorises goods for customs and GST. It helps freelancers and exporters receive payments from abroad without unnecessary delays.

HSN came into effect in 1988, developed by the <a href="https://www.wcoomd.org/">World Customs Organization (WCO)</a>, and is now used by over 200 countries, including India.&nbsp;

If you are not familiar with the term HSN and its meaning, let us break it down for you:&nbsp;&nbsp;

For Indian freelancers and exporters, HSN codes are used in GST filings, export invoices, and most importantly, the documentation your client's bank needs to process your payment.&nbsp;

How to Read an HSN Code: Meaning of All 4, 6, and 8 Digits

In India, you need to use 8-digit HSN codes, where the first two digits represent the relevant HSN chapter, the next two are the heading, the following two are the subheading, and the last two digits are the customs tariffs.

Let us break down the digits of the HSN code 22021010&nbsp; for you:&nbsp;

The best part is that the HSN number speaks the same language everywhere, whether you're sending website designs to a startup in Berlin or software code to a company in New York. 

Your invoice looks professional, your payment gets processed without question in a systematic manner, and you avoid those dreaded "clarification needed" emails that delay your money.

HSN vs SAC Code – Which One Applies to You?

This is a common confusion, especially among freelancers and SaaS companies. Here's the simple breakdown of HSN code list:

But you'll use HSN codes instead if you're shipping physical products - handmade jewellery, organic spices, or textile products.

💡Quick tip: All SAC (Service Accounting Code) codes start with "99"; that's your first clue you're dealing with services. The eight digits of the correct HSN code are mandatory for exports and imports, while SAC codes are 6 digits and mandatory for service providers with a turnover above ₹5 crore.&nbsp;

When Are You Required to Use HSN or SAC in Export Invoices?

You must mention the HSN or SAC code in your export invoice if:

The GST portal doesn't auto-fill this stuff for you, and missing it means your refund application sits in "pending clarification" limbo.