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FIRC certificate for Local Fund transfer in Indian Bank

manujain3710
Active Member
Manu J Member Since: Apr 26, 2020
11 of 19

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
Active Member
Nirav N Member Since: Dec 28, 2017
12 of 19

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

vdsramguptakandu
Active Member
V D S Ram Gupta K Member Since: Feb 15, 2017
13 of 19

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
Active Member
Jigarkumar P Member Since: Mar 28, 2020
14 of 19
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
Community Manager
Aleksandar D Community Manager Member Since: Mar 23, 2019
15 of 19

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.

~ Aleksandar
Upwork
e58c8405
Active Member
Shubham K Member Since: Aug 18, 2017
16 of 19

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
Active Member
Manu J Member Since: Apr 26, 2020
17 of 19

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

e58c8405
Active Member
Shubham K Member Since: Aug 18, 2017
18 of 19

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
Ace Contributor
Sridhar J Member Since: Sep 26, 2015
19 of 19

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

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