Can my foreign client pay part of the invoice?
- Verified by:
- Editorial team
- Published
- Last modified
- Reading time
- 2 min read
Short answer
Yes, as long as the full invoice value is realised within the realisation period, which for services is nine months from the invoice date (twelve if invoiced or settled in rupees) under regulation 5 of the FEMA (Export and Import of Goods and Services) Regulations, 2026.12 If the client will never pay the balance, ask your bank to allow a reduction in export value under regulation 6; for an invoice up to ₹10 lakh, your declaration is enough.1
Clients abroad often pay in stages: a deposit, a milestone payment and a final balance. FEMA rules do not stop this. What they care about is that the whole invoice value reaches India in time, or that your bank has accepted a lower figure.1
When are part payments fine?
Part payments are fine when all of them land within the realisation period. Regulation 5 of the FEMA (Export and Import of Goods and Services) Regulations, 2026 (the 2026 Regulations) requires the full export value, or a reduced value allowed under regulation 6, to be realised and repatriated within nine months from the invoice date for services.12
Example: a web developer invoices a London client $9,000 on 1 November 2026, payable in three monthly instalments of $3,000. All three arrive by February 2027, well before 1 August 2027, so nothing more is needed.12 Ask your bank to match each receipt to the same invoice so the export entry closes when the last one arrives.
What if the balance arrives late?
Ask your Authorised Dealer (AD) bank for an extension of the realisation period before the nine months end. Regulation 5 lets the bank extend the time if you cite reasons for the delay and it is satisfied.1 See extension of export realisation period.
What if the client will never pay the rest?
Ask for a reduction in export value. Regulation 6 lets the bank allow a reduction, including non-realisation of the full value, on your request citing reasons for the under-realisation.1 For an invoice up to ₹10 lakh or its foreign currency equivalent, the bank can allow it on your declaration alone.1
| Situation | What to ask the bank for |
|---|---|
| All instalments arrive within nine months | Nothing; ensure each receipt is matched to the invoice |
| Balance will arrive, but late | Extension under regulation 5 |
| Client agreed a discount after a dispute | Reduction under regulation 6 |
| Client has stopped paying for good | Reduction under regulation 6, including non-realisation |
The table summarises regulations 5 and 6 of the 2026 Regulations.1 A video editor paid $1,200 of a $1,500 invoice after the client cut one deliverable would use the declaration route, since the invoice is well under ₹10 lakh.1
What about bank charges deducted on the way?
If an instalment arrives short because banks deducted fees, the 2026 Regulations do not deal with charges specifically; regulation 6 on under-realisation is the provision that covers any gap.1 See short realisation of export proceeds and reduction in export invoice value.
Banks apply these provisions through their own published procedures, so check yours and keep the client's written agreement to any revised amount.
How did we verify this?
We checked this page against the sources below on 28 October 2026. Read our methodology or report an error.
- [1]RBI: Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026, Notification No. FEMA 23(R)/2026-RB, amended up to 22 September 2026 (regulations 4, 5, 6 and 19)
- [2]RBI: FEMA (Export and Import of Goods and Services) (Amendment) Regulations, 2026, Notification No. FEMA 23(R)/(1)/2026-RB dated 22 September 2026
Frequently asked questions
Do I need the bank's approval to accept instalments?+
Not for the instalments themselves. What the 2026 Regulations require is that the full export value is realised within the period, or a reduced value the bank has allowed under regulation 6.1
Is there a percentage limit on how much an invoice can be reduced?+
The 2026 Regulations set no percentage limit; the bank decides on your reasons, or on your declaration for invoices up to ₹10 lakh.1
Should I raise separate invoices for each instalment?+
It can make matching easier, because the realisation clock runs per invoice date.1 Agree the approach with your accountant, since it also affects GST invoicing.
This page is general information for Indian service exporters, not tax or legal advice. Rules change and outcomes depend on your facts, so confirm with a chartered accountant before acting.
Keep reading
What should you do when export proceeds are short-realised?
When less money reaches India than your export invoice says, FEMA calls it under-realisation. How service exporters regularise it with their AD bank from 1 October 2026.
RBI and FEMAHow do you reduce the value of an export invoice under FEMA?
When a foreign client pays less than the invoice, your AD bank can allow a reduction in export value under regulation 6. Up to ₹10 lakh, your declaration is enough.
RBI and FEMAHow long does a service exporter have to realise export proceeds?
How long Indian service exporters have to get paid by foreign clients under FEMA from 1 October 2026, how extensions work and what happens if you miss it.
RBI and FEMAHow do you get an extension of the export realisation period?
How Indian service exporters ask their AD bank to extend the nine-month realisation period under regulation 5 of the FEMA export regulations from 1 October 2026.