Inward Remittance from Foreign Employer

[resjudicata]

@iwillwalkinfaith I am not sure, been doing it this way for years now. For me it is usually proceeds from selling my stocks, maybe its not needed in those cases. I will ask my CA why I don't need them.

 

[john_h]

@resjudicata for selling the stocks its not needed. if you sell a service/product, FIRC is required to prove that you received income from abroad and not within india. this is needed if you want to take advantage of gst benefits.

 

[seraphin29]

@iwillwalkinfaith For same purpose I was in SBI and the concerned lady told me FIRC would be given once in a year. I can refer to my statements that will have money received, charges, converted amount in INR.

My CA said he need FIRC for each transaction. Seems SBI is not suitable in this case.

 

[iwillwalkinfaith]

@seraphin29 Yep - HDFC seems to be the way for now

 

[andypro7]

@resjudicata I got a message saying to submit documents by visiting branch for processing my inward remittance. Can you tell me what documents do u have to submit

 

[resjudicata]

@andypro7 It is just a declaration form you need to sign and submit. call your branch. i usually just email them a scanned copy.

 

[tonya41]

@lucianne Have you had a look at this type of account

https://www.icicibank.com/Personal-...y-domestic-account/eligibility.page?#toptitle

 

[trispy]

@tonya41 Good for parking money. But conversion rates will still apply if you want to transfer in any Indian bank account right (even ICICI itself)? which you'll eventually need to do. Also I assume the account does not give any interest on parked amount, so parking for long time might give some benefit if you are lucky and currency rates change in your favour, but you lose interest and otherwise opportunity to invest and grow that money. Or did I misunderstand this?

 

[tonya41]

@trispy Yes conversation rate apply and below market level. I am in the same situation as you but my payment are once every month so I don't mind the conversion difference.
No there is no interest on the money parked. The worst part about this is that we cannot do online transfer. Any transfer from this account to your SB account has to be via a manual signed form.

 

[trispy]

@tonya41

I am in the same situation as you

I am not receiving any remittance. I am just a curious person here trying to improve my financial literacy

The worst part about this is that we cannot do online transfer. Any transfer from this account to your SB account has to be via a manual signed form.

Thats too bad.

 

[robertven]

@lucianne I can't help with your issue, but FWIW, transferwise is great. What is your employer's issue with transferwise?

Also

I am planning to open a current account (as the income is more than 20 L p.a.)

This is new to me. Why do you need a current account if your income is more than 20L pa?

 

[christianeagle]

@robertven TW doesn't help with FIRC and their partner banks don't provide it. So it is a no-go if you are paying 0 IGST under LUT.

 

[healmyheart]

@christianeagle So if I am getting money from Transferwise to ICICI current account, would ICICI provide me FIRC or Transferwise?

 

[christianeagle]

@healmyheart No one. ICICI cannot provide because it received the funds in INR. TW cannot provide because it is not a bank. They suggest discussing directly with their partner bank (HDFC/YES) depending on which bank you received the INR from, but I have gone to and fro with both of them for 1 year but none of them issued an FIRC.

 

[ajh40]

@christianeagle I second this comment same issues we had with transfer wise I suggest don’t go that route

 

[amcm93]

@ajh40 If money transfer is for non business reasons, is TW safe from Indian authorities perspective?

 

[coillteglas]

@christianeagle Did not see this reply. What's the response you get from hdfc and yes bank when reach out fits FIRC?

 

[christianeagle]

@coillteglas Both of them issued a letter certifying that no currency conversion took place and they they sent the INR to my account from TW's account with them. They said that this was all they could give me and not an FIRC.

 

[amcm93]

@christianeagle Did you figure the implications of not having a Firc? I know its said mandatory but does anyone care?

 

[christianeagle]

@amcm93 If the GST officer flags your account and asks for proof, an FIRC is the only valid document to prove that funds arrived in a foreign currency which is required to claim 0% GST after filing LUT. In cases where you can’t prove this, all your earnings will attract 18% GST plus interest.