FIRC certificate for Local Fund transfer in Indian Bank

[freelancerdev]

Hello Everyone, I am freelancer from India and transferring my funds using Local Fund transfer method available in oDesk. Can anyone guide me if we can get FIRC certificate from any where regarding this fund transfers in India? Thank you! Kalpana

[testsandeep]

Hello, I searched for FIRC. May be this link will give an idea. http://www.caclubindia.com/forum/firc-foreign-inward-remittance-certificate--13406.asp#.U6ZmeZSSzhc

[ffonollera]

You get it from your bank. You'll need that documentation for service tax exemption.

[freelancerdev]

The bank is saying, we are getting INR so won't be able to provide FIRC. now from where to get it?

[testsandeep]

If bank is receiving money in INR then why is FIRC required. I think it will not be necessary.

[nitinsharma91]

[quote=Kalpana P.]The bank is saying, we are getting INR so won't be able to provide FIRC. now from where to get it?[/quote] Since you are withdrawing your funds using LFT transfer, which is credited to your bank account via NEFT transfer so there can't be any FIRC for this. Funds are transferred from JP Morgan Chase (India branch) to your bank, which is a local transfer cleared through NEFT transaction system.

[scholastic_works]

Hi Kalpana,

Did you find a solution to this problem?

For claiming exemption under Service Tax (export) we need a FIRC.

FIRC is a proof that the earning was in foreing currency.

Now, the bank does not provide the FIRC since they receive the funds in INR from either Western Union (Elance) or ODesk (Upwork) via NEFT. Therefore, the bank says, since they are not the ones involved in conversion from USD to INR, they cannot provide FIRC.

How to obtain this document then?

If you or someone in the community has found an effective solution, please be kind to share and oblige.

Best,

Vinay

[arunshrma817]

Hello Vinay
   
     I am facing same problem as you.  Did you find the solution ?

Thanks

[vdsramguptakandu]

Did any one find a solution for same. I am facing the same issue.

[inoactiv]

as per GST law and save 18% tax we need this document (FIRC) to proof that payment came from abroad and what paid in foreign currency. hence it will qualify for export of service and payments from upwork will qualify for exempt from tax.

Has any body found a solution. Also does any one knows which bank is used by Upwork to transfer money to India.

[manujain3710]

Hi Angad, I have been seeing that started the thread and have a quite of lot of discussion with the Upwork Team. Are you able to find any solution around it? 
FIRC for LFT. 

[niravnayak]

Same issue. Any solution. How do we get FIRC.

[vdsramguptakandu]

I am withdrawing funds either using paypal or Wiretransfer. They both cost more when compared to LFT but to get an FIRC these are the only options.

If you are withdrawing using paypal here is the procedure 

https://www.paypal.com/in/webapps/mpp/firc-certificate

If its a wire transfer you can easily get an FIRC from your bank to which the amount has been credited. Just contact the bank once you get the funds and they will give it. Some private banks automically mail the FIRC to us once the amount is received. They call it Inward Remittence and they said this can be used as proof that we received amount in foreign currency.

[sjpat]

Hey Ram, Thanks for sharing the details I am looking for. I was setting up Wire transfer method for my AXIS and ICICI bank accounts. Could you please help me with Remittance Information details for setting up Wire Transfer Account? Please have a look at attached image for reference. Thanks in advance.

[djondinium]

Hi Jigarkumar,

You can check out this help article and the 'Remittance Information' section for more information. Let us know if you have further questions.

Thank you.

[e58c8405]

Hello Everyone,

As per my current understanding, in case of "Local Fund Transfer" mode of payment, the invoice amount is first converted into INR from upwork partner bank in US (Wells Fargo) and then transferred into Indian Bank (Standard Chartard Bank), which in-turn credit the amount into your bank via a NEFT transfer. 

Now since the money in SCB is received in INR denomination, they would not be in a position to issue you a FIRC certificate. 

The implicaiton of this would be that your invoices will not be considered as export of services and you shall be liable to pay 18% GST on your receipts. 

Please note in case if you have received money by a wire transfer or in case if SCB has received your money in foreign currecny and then converted it into INR, they are legally liabile to provide you a FIRC certificate. 

You need to check in your mode of payment how SCB has received the funds and proceed accordingly.

Hope my answer was helpful!

[manujain3710]

And how can you check SCB their mode of receiving the funds? 

[e58c8405]

If you have opted for "LFT" in payment mode, then it's most likely that SCB is receiving funds in INR and will not be providing you with an FIRC. 

You can refer this comment from Upwork's team member. Hope this will clear!

[sridhar_orion]

Hi Shubam,

You are really helpful in answering queries to people about GST and FIRC. In my case, I have used LFT method before me registering my company for GST. After registering for GST, I'm withdrwaing my funds using wire transfer.

However, during the period of Feb 2016 to June 2017 I have used LFT for fund transfer. It is necessary to get FIRC for LFT transactions during this period? However, I have received payment receipts from Upwork for these LFT transactions.

Kindly help

[mukeshkit]

Hi Shridhar,

I have a similar issue. Received a notice from Service Tax department about the LFT transfers between Arp-2016 and Jun-2017.

Were you able to get the FIRC for LFT mode?

Thanks

Mukesh

[759e32fa]

Hi Mukesh,

Thank you for reaching out to us. I can see that you opened a support ticket regarding this issue. Please allow our team 24-48 hours to review your request and reach out to assist you further. You can access your support tickets here.

[abhishekkhandelw]

Mukesh, how did you resolved the issue? Did you pay fine?? Or were you able to get FIRC?? I am also withdrawing using LFT and might end up in the same situation so really worried

[nis_123]

Is FIRC certificate is also required for individual freelancers who do not have any GST registration also ?

[andregutierrez22 · Accepted solution]

Hi all,

This thread has been closed from further replies due to its size. We appreciate your participation in the Community and welcome you to continue the conversation here.

Thank you!