FIRC mandatory for proving export of services ?

Is FIRC mandatory for proving export of services ? I will be filing for LUT in few days. Is bank statement showing reception of usd enough proof ? Thanks  :)

Replies (14)
Quick Summary
This discussion explores whether a Foreign Inward Remittance Certificate (FIRC) is strictly mandatory for proving the export of services. While a bank statement showing USD receipts is often sufficient for export purposes, the consensus is that obtaining a FIRC from your bank is advisable if possible. It's clarified that FIRCs are primarily for claiming refunds of accumulated ITC or GST paid, and not always essential if you're operating under an LUT and not paying GST.

FIRC is mandatory to claim refund of accumulated ITC or GST paid as the case maybe

Originally posted by : CA Altamush Zafar
FIRC is mandatory to claim refund of accumulated ITC or GST paid as the case maybe

Thanks sir. I will be filing LUT in few days --  and will not be paying gst at all. In that case, is it still necessary ? Is showing bank statement that receives usd enough proof ?

As far as export is concerned. It is good enough but you can ask your bank for FIRC, there is no issue on that either. At the most the bank will ask for your service code (Code as per RBI)

Originally posted by : CA Altamush Zafar
As far as export is concerned. It is good enough but you can ask your bank for FIRC, there is no issue on that either. At the most the bank will ask for your service code (Code as per RBI)

I have read many places that banks are only giving FIRCs for FDI and FII.  So what if bank refuses to give FIRC?

No that's not the case. I had a client and he was giving digital marketing service to their customer in US. The bank was giving FIRC

Originally posted by : CA Altamush Zafar
No that's not the case. I had a client and he was giving digital marketing service to their customer in US. The bank was giving FIRC

Thanks sir :)

one more q :::

I have just given share capital to opc. I am only shareholder. Can that be claimed as expense during personal tax filing ?

That is not an expense. It is your investment in personal capacity

Originally posted by : CA Altamush Zafar
That is not an expense. It is your investment in personal capacity

Thanks sir :)

So, i guess it is income for opc? So, opc should create receipt and keep it in its books? No need to give it to shareholder since it cannot be claimed as expense.

For OPC it is capital will be shown as liability

Originally posted by : CA Altamush Zafar
For OPC it is capital will be shown as liability

Sir, for director salary, should director send an invoice to opc? Or is just receipt enough ? Thanks :)

If director is an employee then no invoice required. If director is not a employee then the company will have to pay GST on it on RCM.

If you are giving salary most probably he will be an employee therefore no invoice required

Originally posted by : CA Altamush Zafar
If director is an employee then no invoice required. If director is not a employee then the company will have to pay GST on it on RCM.

If you are giving salary most probably he will be an employee therefore no invoice required

But a receipt has to be given to opc, right, sir?  -- so that it can be claimed as an expense ?

Originally posted by : CA Altamush Zafar
If director is an employee then no invoice required. If director is not a employee then the company will have to pay GST on it on RCM.

If you are giving salary most probably he will be an employee therefore no invoice required

But a receipt has to be given to opc, right, sir?  -- so that it can be claimed as an expense ?

Company will expense salary.......

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