How Can Travel Agencies and DMCs in India Receive International Payments in 2026?

• Typical ticket size: Packages for individual travellers, group tours, incentive trips and events, often billed as a deposit at booking and a balance before arrival. Group and event invoices can run to tens of thousands of dollars.
• Currencies: Mostly US dollars and euros, with British pounds, Australian dollars, UAE dirhams and other currencies from partners who prefer to pay in their home currency.
• Client geography: Foreign tour operators, travel agents and wholesalers in Europe, the United States, the United Kingdom, the Gulf and Southeast Asia, plus individual travellers who book directly.
• Payment methods: International wires from foreign tour operators, domestic bank transfers in the partner's country to local account details, and card payments from individual travellers.

1. 1Foreign partner's or traveller's bank sends the paymentDeduction: A sending fee for an international wire, often small or nil for a domestic transfer in the payer's country. The payer's bank charges for outgoing payments, and the payer can choose who bears the wire charges.
2. 2Intermediary or correspondent banksDeduction: A fee deducted in transit on many SWIFT wires. Each bank in the chain can take a charge before the money reaches India, so less may arrive than invoiced.
3. 3Collecting provider or card checkoutDeduction: A transfer fee, a percentage fee per card payment, or both. Providers that issue local account details or card checkouts charge for collecting and sending the money to India.
4. 4Currency conversion to rupeesDeduction: The gap between the rate applied and the mid-market rate. Whoever converts the foreign currency, your bank or a provider, sets the rate it pays you.
5. 5Indian bank credits your accountDeduction: An inward remittance or advice charge at some banks, plus GST on bank and provider charges. Banks may charge for crediting foreign receipts and for issuing remittance records, and those charges carry GST.

The table ranks platforms with full published pricing for USD by the INR received on USD 8,000, 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 ₹94.86 per USD for 3 Nov 2026.

• Place of supply: A package for a tour in India may not count as an export for GST, even when paid in foreign currency. IGST Act section 13 places hotel accommodation where the property is, passenger transport where the journey starts, and many in-person services where they are performed.
• Deposits: Tour operators often pay a deposit at booking and the balance weeks later. Quote the booking or invoice number with each payment, and ask your AD bank how it matches advance receipts to the final invoice.
• Cancellations: Refunds to foreign partners or travellers go out as outward remittances through your AD bank, or back to the card through the checkout provider. Agree cancellation and refund terms, including who bears charges, before you collect.
• Short payments: Wire deductions can leave an invoice part-paid. Ask partners to choose the OUR charge option, and for invoices up to Rs 10 lakh your AD bank may allow the reduction based on your declaration under Regulation 6 of the FEMA Regulations, 2026.
• Currency holding: Agencies that also pay foreign hotels, guides or airlines can keep foreign currency in an EEFC account and use it for permitted payments abroad, instead of converting twice. See EEFC account.

Travel agencies and DMCs receiving foreign currency must follow the FEMA (Export and Import of Goods and Services) Regulations, 2026, in force from 1 October 2026. Each receipt needs a purpose code and an inward remittance record. Export payment must arrive within nine months of the invoice date, or twelve months if invoiced or settled in rupees.

• FIRA: FIRA is a common market name, not a term defined in the FEMA regulations. Your bank issues an inward remittance certificate or advice. CGST Rule 89(2)(c) asks for BRC or FIRC details in a refund claim, and the DGFT eBRC FAQs explain self-generated eBRCs.
• Purpose code: The Travel group in the RBI FETERS purpose code list includes P0301, "Purchases towards travel", which covers amounts received by hotels and others, including by SWIFT transfer. Commission from foreign principals may fit P1099, "Other services not included elsewhere". Confirm with your bank. See purpose codes.
• LUT: Where a supply qualifies as an export of services, a registered agency can invoice without paying IGST by filing a Letter of Undertaking in Form GST RFD-11 under CGST Rule 96A. The LUT must be furnished before export. See LUT filing.
• GST reporting: Report export invoices as zero-rated supplies with the LUT reference, and report packages whose place of supply is in India as domestic supplies with GST. Keep the inward remittance records against each invoice.
• EDF: For services exports, file an Export Declaration Form within 30 days from the end of the invoice month under Regulation 3(2). One EDF can cover a month's exports, and non-software services may file on or before the payment date. Circular No. 20 superseded the SOFTEX circulars. See EDF form.
• Realisation: A 22 September 2026 amendment set the realisation period at nine months from the invoice date, or twelve months for rupee invoicing. Your AD bank may extend it on request.

Travel agencies and DMCs in India pay GST and income tax on foreign receipts according to what they supply. Only supplies that meet IGST Act section 2(6) are exports, which are zero-rated under section 16. Many tour components have their place of supply in India. Income tax follows the Income-tax Act, 2025 from 1 April 2026.

• GST zero-rating: An export of services needs all five conditions in IGST Act section 2(6), including a place of supply outside India and payment in convertible foreign exchange or in rupees where RBI permits. Foreign currency payment alone does not make a supply an export. See place of supply.
• Tour components: Under IGST Act section 13, hotel accommodation is supplied where the property is (13(4)), passenger transport where the passenger embarks (13(10)), and events where they are held (13(5)). How a full package is treated depends on its terms, so take GST advice.
• Commissions: CBIC's text of IGST Act section 13(8) shows clause (b), which placed intermediary services at the supplier's location, as omitted by section 157 of the Finance Act, 2026. Agents earning commission from foreign principals should confirm the applicable date with a GST adviser.
• Income tax: The Income-tax Act, 2025 replaced the 1961 Act from 1 April 2026. The presumptive schemes of old sections 44AD and 44ADA are consolidated in section 58. Whether a travel business qualifies depends on its structure, turnover and type of income, so check with a tax adviser. Earlier years stay under the 1961 Act.
• Withholding: A foreign partner may deduct tax under its own law. US payers often ask entities for Form W-8BEN-E and individuals for Form W-8BEN. Keep any deduction certificate, because a tax treaty may let you claim credit in your Indian return.

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 3(2) EDF within 30 days from end of invoice month, single EDF per month, non-software services may submit on or before receipt of payment; Reg 5 realisation; Reg 6 reduction with declaration up to Rs 10 lakh; Reg 19(3) charges reasonable and proportional (checked 8 Oct 2026)
2. RBI A.P. (DIR Series) Circular No. 20 dated 16 January 2026, Supersedes the Master Direction on Export of Goods and Services and the 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): nine months, or twelve months for rupee invoicing, in force from 1 October 2026 (checked 8 Oct 2026)
4. RBI A.P. (DIR Series) Circular No. 84: Purpose codes for reporting under FETERS (29 February 2012), Group 03 Travel: P0301 'Purchases towards travel (Includes purchases of foreign TCs, currency notes etc over the counter, by hotels, hospitals, Emporiums, Educational institutions etc. as well as amount received by TT/SWIFT transfers ...'; P1099 'Other services not included elsewhere' (checked 8 Oct 2026)
5. RBI Master Direction on Regulation of Payment Aggregators, Para 11(d): maximum Rs 25 lakh per inward or outward transaction processed by a PA-CB; para 11(h): documents to AD bank for EDPMS closure (checked 8 Oct 2026)
6. RBI Master Direction - Deposits and Accounts, Para 3.1: EEFC account, 100 percent of foreign exchange earnings, monthly accruals converted by end of the next month after approved uses (checked 8 Oct 2026)
7. IGST Act, 2017, Section 2 (definitions), Section 2(6): export of services, five conditions (checked 8 Oct 2026)
8. IGST Act, 2017, Section 13: Place of supply where supplier or recipient is outside India, 13(2) location of recipient; 13(3)(b) physical presence; 13(4) accommodation by a hotel, inn, guest house at the property's location; 13(5) events where held; 13(10) passenger transport where the passenger embarks; 13(8)(b) omitted by section 157 of the Finance Act, 2026 dated 30.03.2026 (checked 8 Oct 2026)
9. IGST Act, 2017, Section 16: Zero rated supply, Section 16(1): export of services is a zero-rated supply (checked 8 Oct 2026)
10. CGST Rules, 2017, Rule 96A, Export of services under bond or Letter of Undertaking in Form GST RFD-11 without payment of integrated tax (checked 8 Oct 2026)
11. CGST Rules, 2017, Rule 89, Rule 89(2)(c): BRC or FIRC details for refund claims on export of services (checked 8 Oct 2026)
12. DGFT FAQs on Self-Generation of eBRC, Self-generated eBRC from bank inward remittance data (checked 8 Oct 2026)
13. Income Tax Department: Objective and scope of the new Act (Income-tax Act, 2025), 1961 Act replaced from 01.04.2026; FAQ 25: presumptive schemes in sections 44AD, 44ADA and 44AE consolidated into section 58 (checked 8 Oct 2026)
14. IRS: About Form W-8 BEN-E, Used by foreign entities to document their status for chapter 3 and chapter 4 purposes (checked 8 Oct 2026)
15. IRS: About Form W-8 BEN, Given by a foreign person who is the beneficial owner of an amount subject to withholding when requested (checked 8 Oct 2026)
16. Skydo homepage (pricing and fee calculator), Know what you pay; calculator showing GST 18% of transaction fee (checked 6 Oct 2026)
17. 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)
18. 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)
19. 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)
20. 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)
21. 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)
22. 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)
23. Airwallex Help: Eligible Countries and Territories, INDIA IN - AWX Legal Entity SINGAPORE (checked 7 Oct 2026)