Wise, PayPal or Payoneer: What FIRC, GST and Income Tax Mean for Consultants Getting Paid from Abroad
- Author:
- Manoj Sharma
- Verified by:
- Editorial team
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Short answer
Consultants in India paid through Wise, PayPal or Payoneer in 2026 follow the same core rules. FEMA export regulations, 2026 require realisation within nine months of the invoice. Under GST the fee is a zero-rated export, billed without IGST under an LUT. A FIRC, FIRA or e-BRC proves receipt, and income tax now runs under the Income-tax Act, 2025.
| Applies to | Rules involved | Platforms compared | Last verified |
|---|---|---|---|
| Indian resident consultants, advisers and small consulting firms billing foreign clients for business, management, technical or research advice | FEMA 23(R)/2026-RB Regulations 3(2), 4(2), 5 and 18(2); IGST Act s.2(6) and s.16; CGST Rule 96A; FETERS purpose code P1006; Income-tax Act, 2025 section 58 | Skydo, Razorpay, Wise Business, PayPal, Payoneer | 6 Oct 2026 |
How do Wise, PayPal and Payoneer compare for consultants in India getting paid from abroad?
Platforms named in the question are shown alongside the 2 highest payouts among the platforms this site covers, ranked by the INR received on a $5,000 invoice. Fees were checked on 30 Sept 2026.
| Platform | Best for | Fee | FX markup | Settlement | FIRA | RBI PA-CB status | INR on $5,000 | Source |
|---|---|---|---|---|---|---|---|---|
| Skydo | Indian freelancers and exporters receiving mid to large B2B invoices | $19 up to $2,000, $29 to $10,000, 0.3% above + GST | States zero FX margin at live rate | States under 24 hours; FAQ timelines vary by rail | States instant, free FIRA per payment | RBI authorised PA-CB Inward and Outward; on RBI list | ₹4,69,722 | Skydo pricing (checked 6 Oct 2026) |
| Razorpay | Indian businesses and freelancers on Razorpay invoicing foreign clients | 1% per bank transfer (Rs 1,000 flat below Rs 1,00,000) + GST | States 0% markup on MoneySaver at live rate | States 1 day (T+1 after invoice shared) | FIRS within 24 hours of settlement; no charge listed | RBI authorised PA-CB inward and outward, plus PA-O | ₹4,67,378 | Razorpay pricing (checked 6 Oct 2026) |
| Wise Business | Freelancers and small exporters wanting multi-currency local accounts and eFIRC | Calculator: 1.6% + $2 per payment + 18% GST | Mid-market rate; cost is the 1.6% conversion fee | States under 90 minutes in business hours | eFIRC per transfer, 2 USD + 18% GST | States in-principle PA-CB approval; not found on RBI page | ₹4,63,978 | Wise Business pricing (checked 6 Oct 2026) |
| PayPal | Card and PayPal-wallet payments from overseas PayPal buyers | 4.40% + USD 0.30 per international payment; fixed fee varies | 3.0% above PayPal's base rate on conversion | Not confirmed | Free weekly FIRA; custom Rs 100 + 18% GST each | PA-CB in-principle authorisation granted; final not confirmed | ₹4,34,805 | PayPal pricing (checked 6 Oct 2026) |
| Payoneer | Freelancers and sellers paid via marketplaces or Payoneer clients | Conflicting receiving fee: free, fixed or 1%; 3% INR withdrawal | Conflicting: 3% (fee notice) or 1-4% (pricing page) | Conflicting: auto-withdrawn within 24 or 48 hours | Free digital FIRA downloads; within 72 hours per guide | States in-principle PA-CB; not on RBI list (30 Sep 2026) | ₹4,48,648 to ₹4,68,229 (estimate) | Payoneer pricing (checked 6 Oct 2026) |
Which RBI and GST rules apply to consultants in India getting paid from abroad?
Consulting fees from a foreign client are an export of services, so FEMA export rules and GST zero-rating both apply. From 1 October 2026 the FEMA (Export and Import of Goods and Services) Regulations, 2026 govern declaration, realisation and reporting, and A.P. (DIR Series) Circular No. 20 supersedes the old Master Direction. These rules apply whichever channel receives the money.
| Rule | Source | Clause | Plain meaning | Best for |
|---|---|---|---|---|
| Export declaration (EDF) | FEMA 23(R)/2026-RB | Regulation 3(2) | Declare the full export value in the EDF within 30 days from the end of the invoice month. Non-software services may file on or before the date of payment, and one EDF can cover a month's invoices. | Consultants invoicing several clients each month |
| Realisation period | FEMA 23(R)/2026-RB | Regulation 5 | Bring in the full value within nine months from the invoice date, or twelve months if invoiced or settled in rupees. Your AD bank may extend this on request. | Consultants on long or milestone-based contracts |
| Small invoice closure | FEMA 23(R)/2026-RB | Regulation 4(2) | For invoices up to Rs 10 lakh, the EDPMS entry may be closed on the exporter's declaration, also in quarterly bulk. | Solo consultants with many small invoices |
| Purpose code reporting | FEMA 23(R)/2026-RB | Regulation 18(2) | The AD bank reports every foreign trade transaction in FETERS, which uses RBI purpose codes. | Anyone choosing a code when money arrives |
| Export of services | IGST Act, 2017 | Section 2(6) | Supplier in India, client and place of supply outside India, and payment received in convertible foreign exchange or permitted rupees. | Checking whether a fee counts as an export |
| Zero-rated supply | IGST Act, 2017 | Section 16(1) and 16(3) | Exports are zero-rated, and a registered person can export without paying IGST under a bond or LUT. | GST-registered consultants |
| LUT | CGST Rules, 2017 | Rule 96A(1)(b) | File an LUT in Form GST RFD-11 before export. If payment is not received within one year of the invoice, or the longer FEMA period, pay the tax with interest within 15 days. | Consultants who want to avoid paying IGST upfront |
| EEFC account | FEMA 10(R)/2015-RB | Regulation 4(A) and Schedule I | A resident may credit 100 percent of eligible foreign exchange earnings, including consultancy fees, to an EEFC account with an AD bank. | Consultants who also pay foreign costs in the same currency |
Which purpose code applies to consultants in India getting paid from abroad?
Most business and management consultants use P1006. The right code depends on the service billed, and the AD bank reports it under FETERS as set out in A.P. (DIR Series) Circular No. 84 of 2012. Software, research and marketing advice each have their own codes. For more detail, see P1006 purpose code.
| Code | Official RBI description (verbatim) | Source | Best for (transaction type) |
|---|---|---|---|
| P1006 | Business and management consultancy and public relations services | RBI receipt purpose codes | Strategy, operations, HR and PR advice |
| P0802 | Software consultancy/implementation (other than those covered in SOFTEX form) | RBI receipt purpose codes | IT and software consulting |
| P1007 | Advertising, trade fair service | RBI receipt purpose codes | Market research and marketing consultants |
| P1008 | Research & Development services | RBI receipt purpose codes | Research and product development advisers |
Which of Wise, PayPal and Payoneer leaves a consultant the most rupees on $500, $2,000 and $5,000?
Each row applies the platform's published fee, FX markup and 18% GST on the fee to the XE mid-market rate for 4 Nov 2026. Platforms without full published pricing are not included.
| Platform and invoice | Fee | FX markup | GST | INR received | Cost | Best for |
|---|---|---|---|---|---|---|
| Skydo, $500 | ₹1,797 | ₹0 | ₹324 | ₹45,175 | 4.48% | Indian freelancers and exporters receiving mid to large B2B invoices |
| Skydo, $2,000 | ₹1,797 | ₹0 | ₹324 | ₹1,87,063 | 1.12% | Indian freelancers and exporters receiving mid to large B2B invoices |
| Skydo, $5,000 | ₹2,743 | ₹0 | ₹494 | ₹4,69,722 | 0.68% | Indian freelancers and exporters receiving mid to large B2B invoices |
| Razorpay, $500 | ₹1,000 | ₹0 | ₹180 | ₹46,116 | 2.49% | Indian businesses and freelancers on Razorpay invoicing foreign clients |
| Razorpay, $2,000 | ₹1,892 | ₹0 | ₹341 | ₹1,86,951 | 1.18% | Indian businesses and freelancers on Razorpay invoicing foreign clients |
| Razorpay, $5,000 | ₹4,730 | ₹0 | ₹851 | ₹4,67,378 | 1.18% | Indian businesses and freelancers on Razorpay invoicing foreign clients |
| Wise Business, $500 | ₹928 | ₹0 | ₹167 | ₹46,201 | 2.32% | Freelancers and small exporters wanting multi-currency local accounts and eFIRC |
| Wise Business, $2,000 | ₹3,156 | ₹0 | ₹568 | ₹1,85,460 | 1.97% | Freelancers and small exporters wanting multi-currency local accounts and eFIRC |
| Wise Business, $5,000 | ₹7,611 | ₹0 | ₹1,370 | ₹4,63,978 | 1.90% | Freelancers and small exporters wanting multi-currency local accounts and eFIRC |
| PayPal, $500 | ₹2,109 | ₹1,356 | ₹380 | ₹43,451 | 8.13% | Card and PayPal-wallet payments from overseas PayPal buyers |
| PayPal, $2,000 | ₹8,352 | ₹5,425 | ₹1,503 | ₹1,73,903 | 8.08% | Card and PayPal-wallet payments from overseas PayPal buyers |
| PayPal, $5,000 | ₹20,839 | ₹13,564 | ₹3,751 | ₹4,34,805 | 8.07% | Card and PayPal-wallet payments from overseas PayPal buyers |
For example, on a $2,000 invoice Skydo pays about ₹1,87,063 and PayPal about ₹1,73,903 at today's reference rate, a difference of ₹13,160.
What documents follow each payment (FIRA, e-BRC, EDF, LUT)?
Each consulting payment from abroad should leave a paper trail of a FIRC or FIRA, an e-BRC where needed, an EDF filing and a valid LUT. These documents back your GST export claim, EDPMS closure and income tax records. DGFT's eBRC FAQs describe the e-BRC as confirmation that the exporter received payment against an export.
| Document | Who issues it | When needed | Best for |
|---|---|---|---|
| FIRC or FIRA | Usually the bank or payment provider that credits the money | After each inward payment | Proving receipt in foreign exchange for GST and audits |
| e-BRC | Generated on the DGFT portal against the bank's inward remittance message (IRM) | When you need DGFT confirmation of payment, for example for GST benefits | Consultants claiming refunds or export benefits |
| EDF | Filed by the consultant with the AD bank (Regulation 2(1)(f) and 3(2)) | Within 30 days from the end of the invoice month | Every export of services from 1 October 2026 |
| LUT (Form GST RFD-11) | Filed by the consultant on the GST portal | Before the first export of each financial year | GST-registered consultants exporting without IGST |
| Export invoice | The consultant | For every engagement | Linking the payment to the EDF, GST return and books |
What changes in 2026 for consultants in India getting paid from abroad?
Two legal shifts hit consultants in 2026. RBI replaced its export Master Direction with new FEMA regulations from 1 October 2026, and the Income-tax Act, 2025 replaced the 1961 Act from 1 April 2026.
- New regulations: The FEMA Export and Import Regulations, 2026 came into force on 1 October 2026, and Circular No. 20 superseded the Master Direction and SOFTEX circulars.
- EDF for services: Service exporters now file an EDF within 30 days from the end of the invoice month, under Regulation 3(2).
- Shorter deadline: A September 2026 amendment set realisation at nine months, replacing the fifteen months first notified, and twelve months for rupee invoices, replacing eighteen (Regulation 5, footnotes 2 and 4).
- Tax year: From 1 April 2026 the Income-tax Act, 2025 uses tax year in place of previous year and assessment year. Income from FY 2026-27 is tax year 2026-27.
- Presumptive tax: Section 44ADA for professionals is now part of section 58 of the 2025 Act, per the Income Tax Department FAQ. See section 44ADA for freelancers.
How did we verify this?
Every rule is linked to its official source below with the date it was checked. Platform figures come from each platform's own pages; the full method is on the methodology page.
- RBI Notification No. FEMA 23(R)/2026-RB: Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026 (amended up to September 22, 2026), Regulations 1(2), 2(1)(f), 3(2), 4(2), 5 (and footnotes 2 and 4 on the amendment from fifteen to nine months and eighteen to twelve months), 18(2) (checked 6 Oct 2026)
- RBI A.P. (DIR Series) Circular No. 20 dated January 16, 2026: Export and Import of Goods and Services, Paragraphs 4 and 7 and Annex A: Master Directions and listed circulars, including SOFTEX circulars, superseded from October 01, 2026 (checked 6 Oct 2026)
- RBI Notification No. FEMA 10(R)/2015-RB: Foreign Exchange Management (Foreign Currency Accounts by a person resident in India) Regulations, 2015, Regulation 4(A) and Schedule I, paragraph 1(1) (100 percent of eligible earnings, including consultancy fees) (checked 6 Oct 2026)
- RBI A.P. (DIR Series) Circular No. 84 (2012), FETERS purpose codes for receipts, Receipt codes P0802, P1006, P1007, P1008 (checked 6 Oct 2026)
- RBI A.P. (DIR Series) Circular No. 84 dated February 29, 2012: Compilation of R-Returns, Reporting under FETERS, Paragraph 3: AD banks report all foreign exchange transactions with purpose codes (checked 6 Oct 2026)
- IGST Act, 2017, Section 2: Definitions (CBIC tax information portal), Section 2(6): export of services (checked 6 Oct 2026)
- IGST Act, 2017, Section 16: Zero rated supply (CBIC tax information portal), Section 16(1)(a) and 16(3) (checked 6 Oct 2026)
- CGST Rules, 2017, Rule 96A: Export of goods or services under bond or Letter of Undertaking, Rule 96A(1) and 96A(1)(b) (checked 6 Oct 2026)
- GST Portal user manual: Furnishing of Letter of Undertaking (FORM GST RFD-11), Services > User Services > Furnish Letter of Undertaking (LUT) (checked 6 Oct 2026)
- DGFT FAQs: Self-Generation of eBRC, Version 1.0, March 2024, Q1 (what is eBRC), Q2 (IRM number) and Q79 (GST benefits) (checked 6 Oct 2026)
- Income Tax Department e-filing portal: Objective and scope of the New Act (FAQs), FAQ 2 (1961 Act repealed 01.04.2026), FAQ 9 (tax year), FAQ 21 (parallel running), FAQ 25 (presumptive taxation consolidated in section 58) (checked 6 Oct 2026)
- Skydo homepage (pricing and fee calculator), Know what you pay; calculator showing GST 18% of transaction fee (checked 6 Oct 2026)
- Razorpay MoneySaver Export Account (International Bank Transfers) pricing, Standard Plan: 0% FX markup, 1% fee, FlashLinks 2%, GST applicable, flat fee of INR 1,000 on transactions below INR 1,00,000, setup and AMC INR 0 (checked 6 Oct 2026)
- Wise India: Fees for receiving money (Business), Conversion fee depends on the currency; eFIRC for every transfer; GST 18% of (conversion fee + eFIRC fee); calculator (checked 6 Oct 2026)
- PayPal India Merchant Fees, Receiving international transactions; Currency Conversions (3.0% converting balance and payments received; 4.00% all other cases); Withdrawals Out of PayPal; Dispute Fees; Other Fees (Last Updated 28 March 2024) (checked 6 Oct 2026)
- Payoneer India home (checked 6 Oct 2026)
Frequently asked questions
Which RBI purpose code should a consultant in India choose for a foreign inward remittance for professional services?
A business or management consultant usually chooses P1006, described by RBI as business and management consultancy and public relations services. Software consulting uses P0802 and research work uses P1008. The RBI purpose code list sets the wording. Pick the code that matches the invoice, because the AD bank reports it in FETERS.
Can a consultant in India keep export of services earnings in an EEFC account?
Yes. Under FEMA 10(R)/2015-RB, a person resident in India may hold an Exchange Earners' Foreign Currency (EEFC) account with an AD bank. Schedule I allows 100 percent of eligible foreign exchange earnings to be credited, and it names export receipts and consultancy fees. Ask your AD bank about account terms. See what is an EEFC account.
How long does a consultant in India have to receive foreign inward remittance under RBI export of services rules?
From 1 October 2026, Regulation 5 of the FEMA export regulations gives nine months from the invoice date for services. The period is twelve months if the invoice is raised or settled in rupees. The AD bank may extend it when the exporter gives reasons. See export realisation period.
Does a consultant in India need GST registration and an LUT to bill foreign clients without IGST?
An LUT is filed only by a registered person, so exporting without IGST under an LUT needs GST registration. Rule 96A requires Form GST RFD-11 before export, and it is filed each financial year on the GST portal. Whether you must register depends on your turnover and facts, so check with a tax adviser.
When is a consultant's fee from abroad treated as export of services under GST?
A fee is an export of services under IGST section 2(6) when the consultant is in India, the client is outside India, the place of supply is outside India, and payment arrives in convertible foreign exchange or permitted rupees. Supplier and client must not be establishments of the same person. All five conditions must hold.
Is a FIRC, FIRA or e-BRC proof of foreign inward remittance for a consultant in India?
All three record that foreign money reached you. A FIRC or FIRA comes from the bank or provider that received the payment. An e-BRC is generated on the DGFT portal from the bank's IRM, as the DGFT eBRC FAQs explain. Keep one record for each invoice. See FIRC vs FIRA vs e-BRC.
Which Income-tax Act applies to a consultant's foreign fees in tax year 2026-27?
Fees earned from 1 April 2026 fall under the Income-tax Act, 2025, and that period is tax year 2026-27. Returns for AY 2026-27, covering FY 2025-26, still use forms under the 1961 Act. Advance tax for tax year 2026-27 follows the new Act. See income tax on foreign income.
Does the export declaration form (EDF) apply to consultants paid from abroad after October 2026?
Yes. Regulation 3(2) requires every exporter of services to declare the full export value in an EDF within 30 days from the end of the invoice month. A consultant may file one EDF for all of a month's exports, and a non-software consultant may instead file on or before the payment date. The AD bank is the specified authority.