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.
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
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.
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!
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.
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