RBI Compliance - Direct INR payment received in Current A/c by an Indian Pvt. Ltd Co from o/s India

Hi All,

If an Indian Company is selling digital classes outside India and receives payment directly in their Current account in INR only, as rates given and receipt generated both are are in INR. What all compliances does the company need to take care of regarding RBI/ FEMA compliance and reporting.

Replies (1)

 Here's a breakdown of the compliances: RBI/FEMA Compliances .

1. *FCNR (B) Account*: Not required, as you're receiving payment in INR.

2. *FEMA Declaration*: You'll need to file a FEMA declaration with the AD (Authorized Dealer) bank, stating that the payment received is for export of services.

 3. *Export Declaration Form (EDF)*: Not required, as you're providing digital services.

4. *Realization of Export Proceeds*: You'll need to realize the export proceeds within the stipulated timeframe (typically 9 months from the date of export).

5. *Export Invoices*: Ensure that your export invoices comply with RBI guidelines, including details like invoice number, date, descripttion of services, value, and payment terms.

Reporting Requirements 1. *Annual Performance Report (APR)*: File the APR with the RBI, providing details of your export earnings.

 2. *Foreign Inward Remittance Certificate (FIRC)*: Obtain an FIRC from your bank for each inward remittance, and file it with the RBI.

 3. *Export Data Processing and Monitoring System (EDPMS)*: File export data with the EDPMS, if your export value exceeds ₹5 lakhs.

Other Compliances

1. *GST Registration*: Ensure you have a valid GST registration, as you're providing digital services.

 2. *GST Returns*: File GST returns (GSTR-3B and GSTR-1) regularly, reporting your export earnings and GST liability.

3. *Income Tax Compliance*: Comply with income tax regulations, including filing of income tax returns and payment of

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