Indian Foreign Inward Remittance Certificate FIRC www.deekpay.com

About Indian Foreign Inward Remittance Certificate FIRC

FIRC stands for Foreign Inward Remittance Certificate or Indian Foreign Inward Remittance Certificate is a certificate issued by a bank as a proof of international payment for export which contains all the details of the remittance.FIRC acts as a document for foreign remittance.FIRC keeps track of the amount of money transferred in foreign currencies, rupees and the source of the transfer.

In India, service exporters and sellers receive a large number of applications from theIndiaThe FIRC must be obtained for payments made outside the country, and exporters must provide the FIRC to various government agencies when applying for financial assistance and government support or programmes.

Meaning of FIRC

The full name of FIRC is Foreign Inward Remittance Certificate. FIRC is a document which serves as a proof of inward remittance to India. Thus, when an Indian exporter receives a payment in foreign currency, the FIRC document acts as a proof of transfer. It is like a proof of receipt for an exporter or a business that receives a transfer from outside India.

In India, obtaining a FIRC is crucial as it helps authorities such as the Customs Department and DGFT (Directorate General of Foreign Trade) to keep track of all transactions. Foreign funds often become a vehicle for illegal activities such as money laundering. Therefore, if authorities question or are sceptical about foreign transactions, a FIRC certificate can prevent such legal hassles.

Content of FIRC

FIRC contains the following information:

Name of payee Name and address of remitter Name of recipient of funds Name and address of the first bank that handled the foreign transaction Demand Draft (DD), Telegraphic Transfer (TT) or Cheque Number Exchange rate applicable to the transaction Amounts denominated in foreign currency and Indian rupees Purpose of remittance, according to the recipient

FIRC requirements

Individual exporters or service providers and businesses receiving international payments in India are required to obtain a FIRC.The following persons are required to obtain a FIRC in India when they receive payments from a counterparty outside India:

Indian exporters of goods and services Indian service providers offering services globally Global Sellers International Visitors Exporters exporting from India Organisations working remotely in the country for overseas companies Salaried individuals remunerated in foreign currency Freelancers remunerated in foreign currency E-commerce shops where customers pay in foreign currency

FIRC Certificate Download

The person who receives the payment from outside India is called the beneficiary. When the beneficiary receives funds in foreign currency, the payment will be made through theReserve Bank of India(RBI) Authorised Dealer (AD) to the beneficiary's account.

The beneficiary must request a FIRC Request Form from the bank. The FIRC request form contains the following information:

Name of payee Name and address of payee UTR (Unique Trading Reference) Number Recipient's Name Amount transferred Purpose of remittance Date of transfer Account Number

Once the beneficiary submits the FIRC application form to the bank, the bank generates an Inward Remittance Message (IRM) on the Export and Data Monitoring System (EDPMS), which is the government export portal. The IRM number is the FIRC number. After payment of the fee, the bank will issue FIRC to the beneficiary's account. FIRC is also known as Advice or Foreign Inward Remittance Advice (FIRA).

FIRC RBI Guide

foundation RBI respond in singing FEDAI(Foreign Exchange Dealers Association of IndiaAs per the guidelines, only AD Category I banks can issue FIRCs in India. the government terminated physical FIRCs (except FDI and FII) in 2016 and will issue electronic FIRCs (e-FIRC).

Physical FIRC: The physical FIRC was terminated in 2016. As a result, the remitting bank issues a replacement document, known as a Statement, Offer or NOC, to the parent bank for the issuance of an electronic FIRC. Electronic FIRC (e-FIRC) : As per Reserve Bank of India regulations, AD Category I banks are required to report to EDPMS every remittance (i.e., inward remittance) to India, including any outstanding transfers or advances received by them for export of goods, services or software. When the home bank receives the advice, statement or NOC from the remitting bank along with the required documents, they will generate an IRM on EDPMS.

Use of FIRC

FIRC is evidence of receipt of international payments in India. FIRC is an important document required by the DGFT and the Central Board of Indirect Taxes and Customs (CBIC) to claim export related incentives. FIRC acts as a proof of funds received by the company or individual in lieu of share application. It is an important document to submit to DGFT for the EPCG (Export Promotion Capital Goods) Scheme and Advance Licence. No GST is levied on export of services. In such cases, FIRC is required as it serves as proof of export of services and remittances received in lieu of services. The FIRC has to claim refund or exemption on payments received in India in foreign currency. FIRC is required when payments are received for exports from India as various government agencies require FIRC to validate export transactions.

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