How Can IT Services Companies in India Receive International Payments in 2026?

• Ticket size: IT services are usually billed as monthly time-and-materials invoices, fixed-price milestones or annual support contracts. A single invoice can range from a few thousand dollars for a support month to a large sum for a project milestone.
• Currencies: Clients usually pay in USD, EUR, GBP, AUD, CAD or SGD. The FEMA (Manner of Receipt and Payment) Regulations, 2023 allow clients in countries outside the Asian Clearing Union to pay in INR or any foreign currency.
• Geography: Clients include enterprises, product companies and agencies abroad, and sometimes the company's own overseas group entities. Receipts from Nepal, Bhutan and other Asian Clearing Union members follow separate rules in the same regulations.
• Payment methods: Enterprise clients pay by bank transfer through their accounts payable team after vendor onboarding. Smaller clients may pay by card or payment link. Large contracts usually follow a purchase order, invoice and net payment term such as 30 or 60 days.

1. 1Client's bankDeduction: A sending fee, if the client's bank charges one. On a SWIFT wire the client chooses who bears the charges, and some banks charge the sender.
2. 2Intermediary bankDeduction: A possible flat handling deduction. Correspondent banks routing a SWIFT wire can deduct their charge before the money reaches India.
3. 3Collecting provider or AD bankDeduction: A conversion margin and any transfer or inward fee. The bank or provider converts the currency at its own rate, which sits away from the mid-market rate.
4. 4GST on feesDeduction: GST on fees charged by an Indian bank or provider. Fees charged to the company by an India-based bank or provider are a domestic supply.
5. 5Company's accountDeduction: None, unless the money is kept in an EEFC account and converted later. The credit arrives with a bank record that supports EDF closure, GST refunds and audit.

The table ranks platforms with full published pricing for USD by the INR received on USD 20,000, then lists other business platforms that accept USD, unranked. Fees were checked on 30 Sept 2026 or later.

Each row applies the platform's published fee, FX markup and 18% GST on the fee to the mid-market rate of ₹94.78 per USD for 3 Nov 2026.

• Invoice size: Paragraph 11(d) of the RBI Master Direction on Payment Aggregators caps each inward transaction through a cross-border payment aggregator at ₹25 lakh. Larger milestones need splitting or a SWIFT wire. See PA-CB transaction limits.
• EEFC account: An EEFC account can take 100 percent of foreign exchange earnings. Monthly credits not used for approved purposes must be converted to INR by the last day of the next month. See EEFC account benefits.
• Group entities: Regulation 7 lets an AD bank allow set-off of export receivables against import payables with the same overseas party or its group or associate companies, within the realisation period.
• Vendor onboarding: Enterprise clients often ask for a vendor form, a bank letter and a tax form before the first payment. US payers usually request Form W-8BEN-E from entities. See W-8BEN-E for Indian companies.
• Short payments: If a client pays less than the invoice, Regulation 6 lets the AD bank allow a reduction in export value. For invoices up to ₹10 lakh, the exporter's declaration is enough.

IT services companies in India need an inward remittance record, the correct purpose code, an LUT to export without paying IGST and an EDF for each month's exports. The FEMA (Export and Import of Goods and Services) Regulations, 2026 apply from 1 October 2026, treat software as services and replace SOFTEX with the EDF.

• FIRA or FIRC: FIRA is not a term defined in RBI regulations. CGST Rule 89(2)(c) asks for BRC or FIRC details for each invoice in a refund claim, and the DGFT eBRC FAQs explain self-generated eBRCs from bank data.
• Purpose code: Banks report receipts using the RBI purpose code list. P0802 is "Software consultancy/implementation (other than those covered in SOFTEX form)". P0807 is "Off site software exports". P0804 is "Repair and maintenance of computer and software". Match the code to each contract. See purpose code for software exports.
• LUT: File a Letter of Undertaking in Form GST RFD-11 before exporting, so invoices go out without IGST under CGST Rule 96A. See LUT filing on the GST portal.
• GST reporting: Report each export invoice as a zero-rated supply in the GST return. Keep the bank record for each invoice, because a refund of unused input tax credit needs those details. See GST refund on export of services.
• EDF: Regulation 3(2) requires an EDF within 30 days from the end of the invoice month, and one EDF can cover the month. Software exporters in the DTA file with an AD bank or STPI, and SEZ units with the SEZ Development Commissioner. See EDF form for exports.
• Realisation: Payment must be realised within nine months from the invoice date, or twelve months if invoiced or settled in INR, under the 22 September 2026 amendment. For invoices up to ₹10 lakh, EDPMS entries can be closed on the exporter's declaration.

Fees IT services companies in India earn from foreign clients are usually a zero-rated export for GST and business income for income tax. Under IGST Act section 16, an export of services under an LUT carries no IGST. Companies and LLPs pay income tax on actual profits under the Income-tax Act, 2025 from tax year 2026-27.

• GST zero-rating: A supply meeting the five conditions in IGST Act section 2(6) is an export of services. These include a recipient outside India, payment in convertible foreign exchange or INR where RBI permits, and parties that are not merely establishments of a distinct person.
• Overseas branch: Under Explanation 1 to IGST Act section 8, an establishment in India and one outside India are distinct persons. Services to the company's own foreign branch can fail the fifth export condition.
• Section 58: The Income-tax Act, 2025 consolidates the old presumptive schemes, including section 44ADA, into section 58. Section 58(11) limits them to individuals, HUFs and firms other than LLPs, so companies and LLPs cannot use them. A partnership firm other than an LLP may qualify if it meets the other conditions.
• Foreign withholding: A US payer asks entities for Form W-8BEN-E before payment, and without it may withhold at 30 percent. Other clients may deduct tax under their own law. Keep each deduction certificate in case the company claims a foreign tax credit in India, and check the conditions with a tax adviser.
• Fees and GST: Fees that an Indian bank or payment provider charges the company are a domestic supply and usually carry GST. Keep the tax invoices, because the company can usually claim input tax credit on them.

Rules and rails are linked to official sources below with the dates they were checked. Platform figures come from each platform's own pages, checked on 30 Sept 2026 or later, and RBI authorisation was checked against RBI's published list. Rates are XE live mid-market rates, dated 3 Nov 2026. The method is on the methodology page.

1. Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026, Notification No. FEMA 23(R)/2026-RB, Reg 2(1)(f)(iii) specified authority for software: AD or STPI in DTA, SEZ Development Commissioner in SEZ; Explanation: services include software; Reg 3(2) EDF within 30 days from end of invoice month, single EDF, (b) on or before receipt only for services other than software; Reg 4(2) EDPMS closure on declaration up to ₹10 lakh; Reg 6 reduction in realisation, declaration up to ₹10 lakh; Reg 7 set-off with overseas group or associate companies (checked 8 Oct 2026)
2. RBI A.P. (DIR Series) Circular No. 20 (16 January 2026), Supersedes the Master Directions on Export and Import and the circulars in its Annex, including SOFTEX circulars, from 1 October 2026 (checked 8 Oct 2026)
3. Foreign Exchange Management (Export and Import of Goods and Services) (Amendment) Regulations, 2026 (22 September 2026), Regulation 5(1): 'fifteen months' replaced by 'nine months'; 'eighteen months' replaced by 'twelve months' (checked 8 Oct 2026)
4. Foreign Exchange Management (Manner of Receipt and Payment) Regulations, 2023, Regulation 3(2)(I)(a): Nepal and Bhutan; ACU members through ACU mechanism; countries other than ACU members in Indian Rupees or in any foreign currency (checked 8 Oct 2026)
5. RBI Master Direction on Regulation of Payment Aggregator (PA), Para 11(d): for inward or outward transactions processed by a PA-CB, the maximum value per transaction shall be ₹25 lakh (checked 8 Oct 2026)
6. RBI circular: Guidelines to facilitate faster cross-border inward payments (9 April 2026), Para 3: credit inward payments received during forex market hours within the same business day; para 4: effective six months from the circular date (checked 8 Oct 2026)
7. RBI A.P. (DIR Series) Circular No. 84: Purpose codes for reporting under FETERS (29 February 2012), Annexed receipt purpose codes, Group 08: P0802 'Software consultancy/implementation (other than those covered in SOFTEX form)'; P0804 'Repair and maintenance of computer and software'; P0807 off-site software exports (checked 8 Oct 2026)
8. RBI Master Direction - Deposits and Accounts, Para 3.1 EEFC account: 100 percent of foreign exchange earnings; monthly credits converted to Rupees on or before the last day of the succeeding calendar month after adjusting for approved uses (checked 8 Oct 2026)
9. Integrated Goods and Services Tax Act, 2017, section 2 (CBIC), Section 2(6): five conditions for export of services, including (v) supplier and recipient not merely establishments of a distinct person per Explanation 1 in section 8 (checked 8 Oct 2026)
10. Integrated Goods and Services Tax Act, 2017, section 8 (CBIC), Explanation 1: an establishment in India and any other establishment outside India are treated as establishments of distinct persons; Explanation 2: branch, agency or representational office is an establishment (checked 8 Oct 2026)
11. Integrated Goods and Services Tax Act, 2017, section 16 (CBIC), Section 16(1)(a): export of goods or services is a zero rated supply (checked 8 Oct 2026)
12. Central Goods and Services Tax Rules, 2017, Rule 96A (CBIC), Bond or Letter of Undertaking in Form GST RFD-11 prior to export, for export without payment of integrated tax (checked 8 Oct 2026)
13. Central Goods and Services Tax Rules, 2017, Rule 89 (CBIC), Rule 89(2)(c): statement of invoices with Bank Realisation Certificates or Foreign Inward Remittance Certificates for refunds on export of services (checked 8 Oct 2026)
14. DGFT FAQs on Self-Generation of eBRC, Self-generated eBRC from bank inward remittance data (checked 8 Oct 2026)
15. Income Tax Department: Objective and scope of the new Act (Income-tax Act, 2025), FAQ 2: 1961 Act repealed on 01.04.2026; FAQ 25: presumptive schemes in sections 44AD, 44ADA and 44AE consolidated into section 58 (checked 8 Oct 2026)
16. The Income-tax Act, 2025 (No. 30 of 2025), Gazette of India, Section 1(3): in force 1 April 2026; section 58(11)(a) eligible assessee: individual, HUF or firm other than LLP, resident; 58(11)(b) specified assessee: individual or firm other than LLP, resident (checked 8 Oct 2026)
17. IRS: Instructions for Form W-8BEN-E, Give Form W-8BEN-E to the person requesting it before payment; without it the withholding agent may have to withhold at the 30% rate; do not send to the IRS; Expiration: valid until the last day of the third succeeding calendar year unless a change in circumstances (checked 8 Oct 2026)
18. Skydo homepage (pricing and fee calculator), Know what you pay; calculator showing GST 18% of transaction fee (checked 6 Oct 2026)
19. 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)
20. Kotak Everyday Savings Account fees and charges, Foreign Inward Remittance certificate (Branch Request) INR 100/Request; GST on Foreign Currency Conversion; fees exclusive of GST (checked 6 Oct 2026)
21. HDFC Bank: Remittance Services Fees & Charges, Inward Remittance Charge: No Charge; FIRC Charge for Inward Remittance & FCY Cheque Collection INR 200 per FIRC; GST slabs on amount of currency exchanged (checked 6 Oct 2026)
22. 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)
23. Stripe India pricing, International cards with USD/other currency presentment 4.3% + 2% if currency conversion is required; Mastercard and Visa cards issued outside India 3% + 2%; American Express outside India 3.5% + 2%; dispute received INR 1,000.00 (checked 7 Oct 2026)
24. 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)
25. Airwallex Help: Eligible Countries and Territories, INDIA IN - AWX Legal Entity SINGAPORE (checked 7 Oct 2026)