Why Is It Important to Discuss Export Compliance With Your CA?

Discussing export compliance with your CA matters because it covers more than just receiving money. For Indian service exporters, it spans GST treatment, documentation, remittance reporting, and bank record reconciliation, and each of these can create problems if handled incorrectly from the start.

Getting the requirements right from your first transaction makes invoicing, tax filing, payment reconciliation, and future audits significantly easier to manage.

A CA who understands export compliance helps you tell which rules apply to your specific business type and which don't, so you aren't following a generic checklist built for goods exporters.

Without this conversation, freelancers and service exporters often discover compliance gaps only when they face an RBI scrutiny or a bank query. Correcting backdated records at that point is far harder.

Here are the key questions worth asking your CA to ensure your export business meets the relevant GST, FEMA, documentation, and foreign payment compliance requirements.

1. Do I Have All the Registrations Required to Export?

As an Indian service exporter running an <a href="https://www.skydo.com/blog/how-to-start-export-business-in-india">export business in India</a>, you need at minimum an Import Export Code (IEC) and GST registration before you can legally export and receive foreign remittances. Your CA should also confirm whether an AD Code or any sector-specific license applies to your situation.

2. How Should I Handle GST on My Exports?

Under GST, <a href="https://www.skydo.com/blog/export-of-services-under-gst">export of services</a> qualifies as a zero-rated supply, which means no GST is charged on the invoice. You still need the right mechanism in place to export without paying IGST first, and for most freelancers the more practical route is exporting under a <a href="https://www.skydo.com/blog/all-you-need-to-know-about-lut-for-tech-service-export">Letter of Undertaking (LUT)</a>.

GST gives you 2 options for zero-rated exports:

The LUT must be filed on the GST portal before the first export invoice of each financial year. Ask your CA to confirm that it has been filed, that it is valid for the current year, and that it covers your category of service export.

An LUT is not permanent. It must be renewed at the start of every financial year, and a lapse means you may inadvertently be required to pay IGST on exports.

3. What Documents Should I Maintain for Every Export?

For every export transaction, you should maintain a minimum set of <a href="https://www.skydo.com/blog/export-documents-attestation">export documents</a> covering the contract, invoice, payment receipt, bank certificate, and tax records. Your CA should confirm which of them apply to each transaction type.

Finally, ask your CA how these documents are matched to each other, from invoice to bank credit to FIRC to eBRC, and how long each must be retained for audit purposes.

4. How Should I Record and Reconcile Payments From Foreign Clients?

Every inward foreign remittance must be linked to a specific export invoice using the correct RBI <a href="https://www.skydo.com/blog/p0108-purpose-code-merchanting-trade-export-receipts">purpose code</a>. Your CA should confirm that all incoming payments are being matched, recorded, and reported correctly.

<a href="https://www.skydo.com/">Skydo</a> auto-generates FIRC and BIRC certificates for every inward remittance and assigns purpose codes at the transaction level, so your CA is reviewing strategy instead of chasing bank paperwork or correcting purpose code mismatches after the fact.

5. What Are My FEMA and Export-Realisation Obligations?

Under FEMA, Indian exporters are required to <a href="https://www.skydo.com/blog/export-realisation-guide">realize and repatriate export proceeds</a> within a specified period from the date of export. Ask your CA to confirm the applicable deadline for your transaction type and what happens if it is not met.

6. Are There Any Foreign Withholding-Tax or DTAA Issues?

Yes, they can arise: some countries require overseas clients to deduct withholding tax before remitting payment to an Indian service exporter. Your CA should confirm whether this applies to your client's country and what <a href="https://www.skydo.com/blog/cross-border-tax-compliance">cross-border tax compliance</a> documentation you need to avoid double taxation.

7. How Should I Handle Foreign-Exchange Gains, Losses and Charges?

Every export transaction involves at least 2 exchange rates, the rate on the invoice date and the rate on the date payment is received. The difference must be correctly accounted for as a forex gain or loss in your books.

8. What Should I Do to Stay Compliant as My Export Business Grows?

Compliance obligations change as your export volumes, client geographies, and service types evolve, so revisit this conversation with your CA at least annually and after any significant change in your business.

<a></a>How Can Skydo Help Simplify Export Payment Compliance?

Managing export compliance involves more than receiving payments from overseas clients. You also need to track remittances, obtain the right certificates, assign correct purpose codes, and maintain records that your CA can use for reconciliation and reporting.

Skydo helps Indian freelancers and service exporters simplify the process of receiving international payments and managing remittance documentation.

Skydo does not replace your CA or remove your GST, FEMA, or income tax obligations. Instead, it helps simplify the payment and documentation side of export compliance, making it easier for you and your CA to keep your records organised.

<a href="https://www.skydo.com/">Explore Skydo</a> to simplify international payments and spend less time chasing remittance paperwork.

Negotiating International Payment Terms: A Guide for Indian Exporters & Freelancers 

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What Is an Export Contract and Why Does It Matter?

An export contract is a legally binding agreement between an Indian exporter and a foreign buyer that defines what will be delivered, when, at what price, and under what conditions. It is the document that governs the entire transaction from shipment to payment.

For Indian exporters, the contract is also the foundation for compliance. It links to customs documentation, FEMA obligations, GST treatment, and export incentive claims, and what the contract says triggers all of them.

Take a Pune-based software firm signing a $15,000 services contract with a UK client. If the contract does not specify the payment currency, timelines, and which bank account receives the funds, the exporter can face short payments, <a href="https://www.skydo.com/blog/understanding-edpms-full-form-and-its-essential-role-in-export-management">EDPMS</a> mismatches, and delayed FIRC certificates.

Who Should Use This Export Contract Checklist?

This checklist is for Indian exporters who are about to sign a contract with a foreign buyer, whether they export physical goods such as textiles, pharma and engineering components or services such as IT, consulting and design.

Freelancers with foreign clients, Amazon sellers receiving international payments, and manufacturers entering their first overseas deal will all find every question relevant.

Service exporters and goods exporters face different risks in a contract. Incoterms apply only to goods, while scope-of-work and acceptance criteria matter more for services. The checklist flags which questions apply to whom.

Your export contract must state the product description, quantity, unit of measurement, and technical specifications precisely. Vague descriptions like "software services" or "textile goods" create acceptance disputes later.

The <a href="https://www.skydo.com/blog/payment-terms-in-export">payment terms</a> in your export contract must name the payment method (advance payment, milestone-based payment, open account (payment after delivery), documentary collection, or Letter of Credit (LC)), the exact due date or triggering event, and the payment currency. They should also say whether partial payments are permitted and at what stages.

Once your contract locks in payment currency and timelines, <a href="https://www.skydo.com/">Skydo</a> gives Indian exporters a free USD, EUR, GBP, SGD, AUD, or CAD virtual account so the payment lands exactly as negotiated, with no hidden bank charges cutting into the agreed amount. Flat fees start at $19 per transaction.

3. Who Pays the Bank, Intermediary and Transfer Charges?

Your export contract must state which party pays the bank, intermediary and transfer charges. International wire transfers often pass through one or more intermediary (correspondent) banks, and each may deduct a fee before the money reaches you, so the amount credited can be lower than the amount the buyer sent. The cleanest position for an Indian exporter is a clause saying all bank charges outside India are borne by the buyer.

The contract should name one of three options:

If intermediary charges are deducted, the amount credited to your account is less than the invoice value. That short payment does not reconcile cleanly with your EDPMS records or eBRC, and it triggers follow-up compliance work.

Even a $20–$30 deduction by an intermediary bank, if it is not documented and agreed in the contract, can require a write-off approval or additional documentation to close your export transaction in EDPMS.

The Incoterm in your export contract (for example Ex Works (EXW), Free On Board (FOB), Cost, Insurance, Freight (CIF), or Delivered Duty Paid (DDP)) decides whether you or the buyer is responsible for freight costs, insurance, <a href="https://www.skydo.com/blog/let-export-order">export customs clearance</a>, and import customs clearance at the destination.

Getting the Incoterm wrong, or leaving it unspecified, can flip a profitable deal into a loss before the goods even ship. You end up absorbing freight, insurance, or duty costs that were never priced into the quote.

The Incoterm must also be consistent with the shipping bill and other export documents filed at customs. A mismatch between the contract Incoterm and the declared freight terms on the shipping bill creates documentation discrepancies.

If you export services, Incoterms do not apply. Skip this question and focus on delivery milestones and acceptance criteria instead.

5. What Happens If the Buyer Delays or Doesn't Pay?

Your export contract should answer late or missing payment before it happens. It should define what counts as a payment default (typically, payment not received a set number of days after the due date), add a late-payment interest clause, let you suspend deliveries, and give you the right to terminate after a defined notice period.

6. What Happens If the Order Is Cancelled or the Contract Is Terminated?

Your export contract should say what happens on cancellation or termination: a cancellation fee, refund rules for any advance, payment for work already done, who bears the costs for goods already shipped, a written notice period, and a separate right to terminate for non-payment.

7. Which Law Applies and How Will Disputes Be Resolved?

Your export contract should name the governing law, which is the country's law used to interpret and enforce the contract, and say whether disputes go to court or arbitration. It should also say how formal notices are served. If the contract is silent on the governing law, courts determine it, which is unpredictable and expensive.

8. Are There Any Tax, Export-Control or Compliance Requirements I Need to Meet?

Before you sign, check six things: whether your goods or services need a DGFT export license, whether the contract is consistent with Indian GST treatment of exports, whether your Importer Exporter Code (IEC) is valid and active, whether the buyer's country imposes withholding tax, whether the buyer and any intermediaries pass sanctions checks, and which customs or regulatory documents the buyer needs from you.

Export Contract Checklist Before You Sign

Before you sign, confirm that your export contract covers eight groups: delivery scope, payment terms, bank and transfer charges, Incoterms (goods only), default and cancellation, dispute resolution, compliance, and documentation.

Red Flags to Watch for in an Export Contract

Red flags in an export contract are terms that expose you to payment loss, unlimited liability, or compliance risk, and the time to check for them is before you sign, before any dispute has started.

How Does Skydo Help Indian Exporters Get Paid on Their Export Contracts?

Once your export contract is signed with the currency, due dates and bank charges agreed, the next step is making sure the payment arrives in full and closes cleanly for compliance. Skydo is built for exactly that.

Your buyer pays into a local Skydo account in their own country, with accounts available in the US, UK, Canada, Australia and 10+ other countries. Because the buyer pays locally, the full invoice amount reaches you without intermediary bank deductions, so there are no short payments to reconcile in EDPMS. The money is converted at the live FX rate with zero margin, and you pay a flat fee of $19 for payments up to USD 2,000, $29 for USD 2,001 to 10,000, and 0.3% above USD 10,000.

Funds reach your Indian account in under 24 hours, and a GST-compliant FIRA is issued instantly for every payment, giving you proof of inward remittance for GST refunds, FEMA realisation and RBI reporting without chasing your bank.

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What Is a Bank Guarantee and How Does It Work?

A bank guarantee (BG) is a written commitment from a bank, issued on behalf of its client (the applicant), to pay the beneficiary a specific amount if the applicant fails to meet its contractual obligations. The beneficiary can claim payment directly from the bank without pursuing the applicant first.

A BG protects the beneficiary against financial losses caused by the applicant's non-performance. Common uses include construction projects, government tenders, infrastructure development, commercial supply agreements, and international trade contracts.

Say an Indian IT services firm bids on a government infrastructure project in the Middle East. Its Indian bank issues a performance bank guarantee to the project owner, assuring the owner that the firm will complete the work or the bank will compensate.

What Is a Standby Letter of Credit (SBLC) and How Does It Work?

A standby letter of credit (SBLC) is a bank-issued financial guarantee that ensures payment to the beneficiary if the applicant fails to meet contractual obligations. It is a backup instrument, activated only when something goes wrong, and it is never the primary payment method.

A regular (documentary) letter of credit (LC) serves as the main payment mechanism in a trade transaction. An SBLC, by contrast, remains dormant unless the applicant defaults. The beneficiary then presents documentation proving the default to trigger payment.

SBLCs are governed by globally recognized banking standards (UCP 600 or ISP 98), which makes them widely accepted in international trade across multiple jurisdictions. Common uses include international trade agreements, commodity trading, infrastructure and engineering projects, financial guarantees, and cross-border commercial contracts.

What Are the Types of Bank Guarantees and SBLCs?

The main types of bank guarantees are performance guarantees, advance payment guarantees, and financial guarantees. SBLCs split into performance SBLCs and financial SBLCs.

Bank Guarantee vs Standby LC: What Are the Key Differences?

A bank guarantee and a standby LC differ in four main ways: governing rules, payment trigger, geographic preference, and how claims are processed. A BG follows local banking regulations, and the bank may examine the actual breach before paying. A standby LC follows UCP 600 or ISP 98, and the bank pays on document compliance alone. BGs are preferred in Europe, the Middle East, and Africa, while SBLCs are preferred in North America and Asia.

The claim process is where the two instruments feel most different. Under a BG, the bank examines the actual breach before paying. Under an SBLC, the bank pays strictly on document compliance without investigating the underlying transaction.

SBLCs are preferred in international transactions because they follow globally recognized standards, which makes them easier to enforce across jurisdictions. If your contract specifies UCP 600 or ISP 98, the counterparty expects an SBLC rather than a bank guarantee.

Both instruments require credit checks. The applicant's credit score, financial statements, and business history determine approval, and strong financials lead to better terms and lower <a href="https://www.skydo.com/blog/hidden-fees-in-bank-rates">fees</a>.

Both also require collateral. Cash deposits range from 100% to 110% of face value, and some banks accept other assets as security. Processing time for both ranges from days to weeks, depending on transaction complexity.

When Should Indian Exporters Use a BG or an SBLC?

Indian exporters should use a bank guarantee when providing performance assurance for project-based contracts, typically when the Indian company is the party giving security. They should use an SBLC when a foreign buyer in a common-law jurisdiction demands internationally standardized payment protection.

Worked Example: A Pune-Based IT Services Firm and a German Client

How Does a Bank Guarantee or SBLC Get Invoked, and What Happens Next?

A bank guarantee or SBLC is invoked when the applicant fails to meet its contractual obligations and the beneficiary formally demands payment from the issuing bank by submitting the required claim documents. Under a BG, the bank may examine the underlying transaction and the breach before paying. Under an SBLC, the bank checks only that the documents match the credit terms exactly. Once payment is released, the funds travel by international wire transfer (SWIFT), and an Indian exporter's AD bank credits the account and generates a FIRC.

Under a BG, the bank looks at what actually happened in the contract. Under an SBLC, the bank only looks at the documents, which is why document accuracy is critical when invoking an SBLC.

Invoking a BG or SBLC does not mean the contract dispute is over. The applicant can still pursue legal remedies against the beneficiary after the bank has paid.

Once a BG or SBLC is invoked and your foreign client releases payment, how quickly and cheaply those funds land in your Indian account is what matters next. Skydo settles international transfers at a flat fee, auto-generates your FIRC, and keeps your forex compliance clean, so you can close the contract without chasing paperwork.

How Do You Choose Between a Bank Guarantee and Standby LC?

The right instrument depends on three factors: who is asking for security (you or your counterparty), whether the contract is performance-based or financial, and which legal jurisdiction governs the contract.

How Does Skydo Help Indian Exporters Get Paid on BG and SBLC-Backed Contracts?

Once your bank guarantee or standby LC is in place and the contract is live, the next job is collecting payments from your foreign client as the work progresses or once it is delivered. Skydo makes that part fast, low-cost and compliant.

Your client pays into a local Skydo account in their own country, with accounts available in the US, UK, Canada, Australia and 10+ other countries. The money is converted at the live FX rate with zero margin, and you pay a flat fee of $19 for payments up to USD 2,000, $29 for USD 2,001 to 10,000, and 0.3% above USD 10,000. Funds reach your Indian account in under 24 hours, and a GST-compliant FIRA is issued instantly for every payment, so your proof of inward remittance is ready for GST refunds and RBI reporting without chasing your bank.

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OPGSP stands for <a href="https://www.skydo.com/blog/online-payment-gateway-service-provider-opgsp">Online Payment Gateway Service Provider</a>, the regulatory category under which companies facilitated cross-border online payments before the PA-CB framework existed. An OPGSP did not need its own RBI licence. It only needed a tie-up with an Authorised Dealer Category-I (AD-I) bank, and that bank held the regulatory accountability.

Indian businesses such as exporters, e-commerce sellers and SaaS companies used OPGSPs to receive payments from foreign buyers online. The AD-I bank acted as the regulated intermediary behind the scenes.

Take a Bengaluru software exporter receiving $3,000 from a US client in 2020. That payment would have come through a platform operating as an OPGSP and backed by an AD-I bank, rather than through a directly RBI-authorised aggregator.

PA-CB stands for Payment Aggregator–Cross Border, the regulatory category RBI created in October 2023 for non-bank entities that facilitate cross-border online payments for import or export of goods and services. Unlike an OPGSP, a PA-CB must obtain direct authorisation from RBI to operate. It cannot rely on a bank tie-up, because the regulatory responsibility now sits on the aggregator itself, not the bank.

RBI introduced PA-CB because cross-border payment volumes had grown significantly and the bank-intermediated OPGSP model left payment companies outside direct regulatory oversight. The PA-CB framework brought them under RBI's direct supervision.

PA-CBs are classified into three types based on the direction of payment: export-only, import-only, or both. Each type must maintain separate collection accounts for the respective flow.

The October 2023 RBI circular introducing PA-CB was later consolidated into the September 2025 Master Directions for Payment Aggregators. These unified PA-Online, PA-Physical and PA-Cross Border into a single framework, which makes the September 2025 Master Directions the current operative reference.

Three requirements set PA-CB apart from the OPGSP arrangement:

The biggest difference between OPGSP and PA-CB is who answers to RBI. An OPGSP operated through an AD-I bank tie-up without RBI authorisation, and the bank held the accountability. A PA-CB must hold direct RBI authorisation and carries that accountability itself. The two also differ on import transaction scope and cap, net worth, collection and escrow structure, KYC and merchant onboarding, and FIRC and reporting.

<a href="https://www.skydo.com/">Skydo</a> is a PA-CB authorised platform. Indian exporters and freelancers can start receiving compliant international payments in 10 to 15 minutes. Every transaction comes with a free FIRC certificate and predictable flat-fee pricing, with no hidden charges and no chasing banks.

RBI introduced the PA-CB framework because cross-border online commerce and digital payment volumes had grown substantially, while the companies actually handling these payments, the OPGSPs, sat outside direct RBI oversight. Accountability rested on AD banks instead. By creating the PA-CB category, RBI closed that oversight gap.

The OPGSP model created a structural gap. Payment platforms processed significant cross-border transaction volumes without being directly regulated, supervised, or held to net worth, escrow or KYC standards by RBI.

The PA-CB category brought payment aggregators facilitating cross-border transactions under the same direct regulatory perimeter RBI had already established for domestic payment aggregators.

The framework also extended import coverage to services, not just goods, and raised transaction limits. That reflects the growth of India's services exports and digital commerce since the original OPGSP rules were written.

The September 2025 Master Directions unified PA-Online, PA-Physical and PA-Cross Border. This signals that RBI now treats all payment aggregation activity as a single, coherent regulatory category rather than a patchwork of separate circulars.

What Changed for Businesses Using OPGSPs?

The OPGSP era is over. Any platform that previously operated under an OPGSP arrangement had to either obtain direct RBI PA-CB authorisation or stop facilitating cross-border payments. For you as an exporter or freelancer, the changes show up in FIRC validity, merchant onboarding documentation, transaction monitoring, settlement flows and platform stability. Businesses that did not check which path their platform took may have continued transacting through a non-authorised intermediary.

OPGSP vs PA-CB: Which One Applies to Your Payment?

OPGSP no longer applies to any new payment, because the October 2023 RBI circular effectively ended the framework. If you are receiving international payments today, the only compliant framework is PA-CB.

If you received payments before October 2023 through a platform operating as an OPGSP, those transactions were valid under the rules at the time. The PA-CB framework is not retroactive.

From October 2023 onwards, any non-bank entity aggregating cross-border payments in India is required to be PA-CB authorised. So the question for a business owner is whether the platform they use has obtained that authorisation.

These use cases all fall squarely under the PA-CB-Export category, and the platform handling the payment must hold that authorisation:

A practical check is to ask your payment platform to confirm its PA-CB authorisation status with RBI. A platform that cannot confirm this should be treated as a compliance risk for your foreign remittances, FIRC issuance and FEMA reporting.

How Skydo Helps You Receive International Payments Under PA-CB Rules

Once you know that your payment platform needs PA-CB authorisation, and that your FIRC is what you need for GST refund claims, income tax filings and FEMA compliance, the next problem is finding a platform that covers all of it. <a href="https://www.skydo.com/">Skydo</a> is a PA-CB authorised platform, which means every payment you receive through Skydo is processed within RBI's current compliance framework. Your FIRC, FEMA reporting and remittance recognition are covered from day one.

Why Do Invoice Mistakes Delay Export Payments?

Invoice mistakes delay export payments because your invoice gets checked three times before the money is credited: by your client's accounts payable (AP) team, by the banks routing the funds, and by your Indian bank. A mismatch at any one of these stops the payment until someone corrects it.

The frustrating part is that the money is usually sitting in a queue somewhere. Your client marks the invoice as paid, nothing shows up in your account, and it takes a week of emails to find the missing PO number or the wrong digit. These are the six mistakes behind most of those holds.

Mistake 1: Bank Details That Don't Match Your Account

Wrong bank details are the most avoidable cause of a delayed export payment. The account holder name, account number and routing code on your invoice must match your bank's records exactly, or the payment can be held or sent back to your client.

For example, a Pune-based designer bills a New York agency under her studio name, while her current account is in the name of her proprietorship. The agency's bank sends the wire, her Indian bank flags the name mismatch, and the payment sits until she sends documents linking the two names.

Copy bank details from your bank's official account letter or dashboard and never retype them. If you reuse an invoice template, check it once against a recent bank statement and lock that section.

Mistake 2: A Vague Description of the Work

A vague invoice description delays export payments because your Indian bank has to classify every inward remittance under an RBI purpose code. If the description doesn't make clear what you exported, the bank holds the credit and asks you.

Under <a href="https://www.skydo.com/blog/fema-foreign-exchange-management-act">FEMA</a>, every foreign payment into India must carry an <a href="https://www.skydo.com/blog/rbi_purpose_code_for_inward_remittance">RBI purpose code</a>. Your bank reads your invoice and the remittance details to confirm the code fits the transaction. "Professional services" fits several codes, so it gets a query.

For example, a developer invoices "Consulting fee: $4,000". The bank can't tell whether this is software work under P0802 or management consulting under P1006, so the remittance stays pending until the developer replies to the bank's email.

Mistake 3: Missing What Your Client's Accounts Payable Team Needs

Your client's accounts payable team only pays invoices that pass their own checks. If your invoice is missing a PO number, a due date or a required tax form, it sits in a queue and never gets scheduled for payment.

Large companies match every invoice to a purchase order. An invoice without a PO number often gets sent back or ignored. Ask your contact for the PO before you start the work, and put it near the top of the invoice.

"Net 30" alone leaves the AP team to work out the date. Write the actual date, such as "Due: 15 November 2026", next to the terms.

US companies ask foreign vendors for a W-8BEN (individuals) or W-8BEN-E (businesses) to document that they are not US taxpayers. Many won't release the first payment to a new foreign vendor until this form is on file, so send it with your first invoice.

Say you work with a marketing team at a US company's London office, but your contract is with the US parent. If your invoice names the London office, the AP team in the US may reject it. Address the invoice to the legal entity on your contract, at its billing address, and send it to the AP inbox your client gives you, copying your day-to-day contact.

Mistake 4: An Invoice Amount or Currency That Doesn't Match What Arrives

An amount or currency mismatch delays export payments because nobody can tell which invoice the payment settles. When the amount that lands differs from the invoice, you, your bank and your accountant have to reconcile it before your FIRA and GST records line up.

For example, you invoice a UK client $3,000. They pay from a GBP account, their bank converts at its own rate, and $2,968 reaches India. Your invoice and your FIRA now differ by $32, and your CA asks which invoice this payment closes.

State the currency clearly on the invoice and ask clients to quote the invoice number in the payment reference. Goods exporters should be extra careful here, because a short receipt against a shipping bill stays open in EDPMS until your bank closes it.

Mistake 5: Getting Paid by Someone Other Than the Party You Invoiced

When someone other than the party on your invoice pays you, your bank treats it as a third-party payment and checks it before crediting. The RBI allows third-party payments for exports of goods and software, provided you can show why that party is paying.

Under <a href="https://rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=8731">RBI rules on third-party export payments</a>, your bank needs:

For example, you invoice a Singapore startup, but its US parent company pays you. Add a line to the invoice such as "Payment will be made by [Parent Inc., USA] on behalf of [Client Pte. Ltd., Singapore]" and keep the client's email confirming this.

Ask every new client who will actually send the money before you raise the first invoice. It takes one email and saves a compliance query later.

Mistake 6: Skipping the Export Compliance Fields on Your Invoice

Missing GST and export fields slow down everything that happens after the money lands: matching your FIRA, claiming your GST refund and closing export records with your bank. Rule 46 of the CGST Rules lists what an export invoice must carry.

Export Invoice Checklist Before You Hit Send

Before you send an export invoice, check eight things: bank details, description, client details, AP details, amount, payer, GST fields and, for goods, shipping documents. Two minutes on this list saves days of follow-up.

How Does Skydo Help Exporters Avoid Invoice Payment Delays?

Skydo helps exporters avoid invoice payment delays by giving them local account details that clients pay as a domestic transfer, and a FIRA for every payment. That removes the intermediary deductions behind most amount mismatches and the paperwork chase after the money lands.

Skydo now assists service exporters with EDF form generation

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What Is Liberalised Remittance Scheme (LRS) in India?

The Liberalised Remittance Scheme (LRS) allows Indian residents, including minors to remit up to $250,000 outside India in a financial year. The Reserve Bank of India (RBI) introduced the framework in 2004 under the Foreign Exchange Management Act (FEMA), 1999.

You can use LRS for <a href="https://www.skydo.com/blog/outward-remittance">outward remittances</a> related to current account transactions, including travel, education, medical treatment, and gifts. You can also use it for capital account transactions, including foreign investments, overseas property, and foreign bank accounts.

Besides the <a href="https://www.skydo.com/blog/foreign-remittance-limit">foreign remittance limit</a>, you must follow two critical rules to take advantage of the LRS scheme:

What are the Key Features of Liberalised Remittance Scheme?

The key features of the Liberalised Remittance Scheme (LRS) include a USD 250,000 annual limit per individual, availability for all resident individuals only, no prior approval required, TCS on amounts crossing the threshold, and prohibition on certain high-risk transactions.

Also keep checking the RBI website as it updates the rules around the Liberalised Remittance Scheme (LRS) in its latest circulars.

Who Can Remit Under the Liberalised Remittance Scheme in India?

Any person who qualifies as a resident individual under the Foreign Exchange Management Act (FEMA) and holds a valid PAN card is eligible to remit money under the Liberalised Remittance Scheme (LRS). For example, a software engineer living in Delhi can use LRS to send money to a brokerage account in the US to buy international stocks.

Resident minors are also eligible to participate in the LRS scheme. Because a minor cannot legally enter a contract alone, a parent or legal guardian must co-sign the required Form A2. This is common when parents set up overseas savings accounts for their children's future education.

LRS are for resident individuals only. The following entities are ineligible for the LRS:

The LRS doesn’t cover NRIs. They follow NRE/NRO account repatriation rules, which allow them to move money from India.

What are the Benefits of Liberalised Remittance Scheme?

The benefits of the Liberalised Remittance Scheme include global portfolio diversification, high-quality education abroad, financial support for family members living overseas, global travel and emigration, business expansion, and donations to individuals and charities outside India.

Portfolio diversification: Invest in international equities, global mutual funds, bonds, and Exchange Traded Funds (ETFs) through LRS to build global assets and balance out domestic market volatility.

Education support: Pay for tuition fees, hostel expenses, books, and daily living costs for students at foreign universities. A parent can use LRS to fund the necessary Guaranteed Investment Certificate (GIC) for their children studying in Canada and pay the first year's tuition directly from their Indian bank account.

Medical Treatment: Pay for specialized surgeries, consultations, or hospital stays to take care of your family members overseas.

Real Estate: Buy residential or commercial property abroad to build physical assets in leading cities globally.

Family Maintenance: Send gifts or monthly maintenance funds to close relatives like siblings, children, or parents to take care of their day-to-day expenses.

Business Expansion: Invest in foreign start-ups, joint ventures, or set up your own overseas business entities.

Global travel and emigration: Cover international leisure and business travel costs and relocation expenses for employment or permanent settlement.

Donations and gifting: Donate to international charities or send monetary gifts outside India using the LRS scheme.

What are Permissible Transactions Under the Liberalised Remittance Scheme?

Permissible transactions under the LRS are divided into current account transactions and capital account transactions. Current account transactions include money spent on services or expenses that do not create an asset outside India. Capital account transactions are those that create assets or liabilities outside India, such as buying property or stocks.

What Are The Prohibited Transactions Under Liberalised Remittance Scheme?

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