What is an FIRC?
A Foreign Inward Remittance Certificate (FIRC) is a crucial document issued by banks in India, serving as proof of foreign remittance received by an Indian entity. FIRCs validate transactions involving foreign currency payments and are essential for various financial processes.
As per the guidelines set by the Reserve Bank of India (RBI) and the Foreign Exchange Dealers Association in India (FEDAI), only Authorized Dealer Category I (AD) banks are permitted to issue FIRCs.
Exported goods and services are classified as zero-rated supplies, exempt from GST. However, exporters must present their Foreign Inward Remittance Advice (FIRA) to claim GST refunds on input tax credits. Additionally, this document is vital for accessing export-related incentives, such as exemptions on foreign currency payments received in India.
What are FIRA, FIRS, and BRC? Why are these documents important?
Following the introduction of the Export Data Processing and Monitoring System (EDPMS), the RBI instructed banks to stop issuing FIRCs for export payments. Instead, banks now provide FIRAs (Foreign Inward Remittance Advice) for these transactions.
FIRA is commonly known as FIRS (Foreign Inward Remittance Statement) or NOC (Non-Objection Certificate) by various banks, all of which fulfill the same purpose. Besides acting as proof of receiving international payments, these documents are essential for claiming export incentives and GST refunds.
Does Mulya provide an FIRC?
Mulya does not issue an FIRC directly. Instead, we provide a Foreign Inward Remittance Statement (FIRS) through our banking partner, JPMorgan, for all your international transactions. You can use the FIRS as proof of foreign payment receipt.
If you specifically require an e-FIRC, simply take the FIRS issued by Mulya to your beneficiary bank (the Indian bank where your INR is settled) and request them to issue the e-FIRC.
What are the charges for obtaining a FIRC for my Mulya transactions?
Mulya provides the Foreign Inward Remittance Statement (FIRS) at no cost for all transactions. There are no additional fees for generating or issuing a FIRS. It will be available for download within 24 hours of the transaction's settlement in your Mulya dashboard and will also be sent to your registered email address.
Will my client’s name appear as Mulya in the FIRC?
No, the name reflected in the FIRS will not be Mulya. The FIRS will display the actual remitter's details, meaning your client’s name will appear as the sender of the funds.
Is a GST number required on the FIRC/FIRS?
No, a GST number is not required on either the FIRC or FIRS. These documents primarily serve as proof of receiving foreign remittances and do not necessitate GST information.