Know 7 Use Cases Of Foreign Inward Remittance Certificate (FIRC)

A Foreign Inward Remittance Certificate, also known as a FIRC, is a piece of paper that serves as a testament to the fact that all incoming foreign payments were successfully deposited into the account to which they were intended. It serves a similar purpose to that of a receipt, except that it is evidence that a person or a business has been paid through a transfer that originated from a country other than India.

In instances in which the services are shipped, the regulations governing the exporting of services stipulate that there will be no service tax charged on the aforementioned services. This provision applies to all services that are exported. Additionally, in the circumstances such as these, the Foreign Inward Remittance Certificate serves as a significant and necessary piece of evidence of the export of services that are being carried out as well as the remittances that are being brought into the country as just a result of the export of goods and the remittances that have been received in exchange for the carrying out of trading platforms.

When applying for an EPCG or an Advance License, you are required to provide the DGFC with a FIRC. This is a very important document. According to the regulations governing the export of services, the Goods and Services Tax (GST) will not be collected from the exported services. In situations like this, the FIRC is an essential piece of evidence that services were exported and that remittances were received in exchange for those services.

The Foreign Inward Remittance Certificate is referred to as what exactly?

The Foreign Investment Review Committee (FIRC) acts as a testimonial or recorded verification of all transactions entering your own nation from other countries. A FIRC is used as a certification that you have received payment in a foreign currency by the majority of statutory entities.

You are required to acquire this certified consent in the event that you will be receiving an amount of money from a different nation through a broker. If you do not have a bank account with a financial institution that is approved, then you will not be able to get your money. If you wish to know more about FIRC in detail from the experts, then get in touch with the professionals online.

Any remittances in excess of the aforementioned amount that are made for any of the following use cases are required to have prior authorization from the Reserve Bank of India:

  1. Visits made by individuals on their own time to just about any country (except Nepal & Bhutan).
  2. Present or Contribution
  3. Leaving the country in search of work
  4. Emigration
  5. Taking care of close relatives who live in another country.
  6. Expenses incurred in conjunction with receiving medical care or examinations.
  7. studying in another country

Issuance of e-FIRCs

When the revenues of trade of goods and services are received by a bank that is not the same bank that the paperwork was filed through, the recipient bank will issue an e-FIRC to link the two banks. In most cases, when the home bank determines that the papers meet its requirements, it will produce an inward remittance (IRM) on the government export portal (EDPMS). The IRM number is also known as an e-FIRC number.

Advice Regarding FIRCs

You can submit an application for a Foreign Inward Remittance Advice (certificate of inward remittance) to the partnering bank that handled your transfer if your transaction does not fit into either of the two categories listed above. The only clients who can receive advice are businesses. You can always contact professionals for assistance and know everything in detail.

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