Now you can get FIRCs for monies received through Paypal
Services rendered outside Indian are termed as “Export Turnover”. This export turnover must carry an evidence that it is an export turnover. This evidence would be required to prove before the Government authorities (Income Tax, Service Tax and so on). The evidence can be such as – agreement with the service receiver, invoices raised on them, a certificate from the bank (where the monies are received and credited to your account) called “Foreign Inward Remittance Certificate” (FIRC).
When it comes to receiving monies through Paypal, the FIRC is something that the banker wouldn’t provide (so far) as the monies are credited to your account as National Electronic Fund Transfer (NEFT) because of the arrangement that Paypal have been having with its bank in India. This created trouble for Indian service providers to prove the export turnover for lack of FIRC document from the banker.
Understanding the need and importance, Paypal has come up with a solution that you can now request its bank (Citibank) through your bank where you received the monies from Paypal.
All you have to do is write a letter to Citibank mentioning the relevant details and submit the same to your banker. Once your banker forwards it to Citibank, your FIRC will be processed by Citibank and will be couriered to your address mentioned on the request letter.
You can use this certificate as a valid document for proving that your’s is export turnover.
Entrepreneurs in Chennai, kindly contact Cogzidel at email@example.com for any help in this regard.