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How should a legal professional in India receive payments from foreign clients?

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Editorial team, serviceexportguide.com
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Short answer

Legal work in India for a client abroad, paid in foreign currency, is usually a zero-rated export of services.1 Legal fees from abroad are usually reported under purpose code P1004, Legal services.56 Advice directly in relation to immovable property in India needs a closer look.1 Legal is a specified profession, so the 50% presumptive scheme in section 58(2) can apply.78

MethodCostSpeedFIRA
SWIFT wire to an Indian bankCharges in the bank's published policy11Depends on the banks in the chaine-BRC self-certified on DGFT from the bank's IRM12
Local account details from a payment providerProvider's published fee and FX markup (see the calculator)Provider's published settlement timePA-CB gives the AD bank the exporter's documents13
PayPal, card or payment linkProvider's published card or PayPal fee (see the calculator)Provider's published settlement timeCheck with the provider for each payment

1,000 USD = ₹94,243 at the reference rate for 13 November 2026 (European Central Bank data).

Estimated rupees received, on published fees

Sorted by estimated rupees received, highest first. Only providers that publish both their fee and their conversion markup for this currency and method can be estimated.

#Provider and routeBest forFee (+GST)MarkupYou receiveCost
1Karbon BusinessLowest estimated costBank transfer to a Karbon virtual USD accountUS bank transfers and marketplace payouts₹942plus GST, rate not stated0%₹93,131 to ₹93,3011.00 to 1.18%
2RazorpayMoneySaver Export Account: bank transfer to virtual account details (Standard plan)Local transfers from the US, UK and eurozone₹1,000plus GST, rate not stated0%₹93,063 to ₹93,2431.06 to 1.25%
3WinvestaGlobal Collections Account, standard plan (up to 2,000 a month per currency)Local transfers with a published per-payment fee₹1,4350%₹92,8091.52%
4SkydoPayment link (InstaLinks) paid by ACH debitLocal bank transfers from major markets₹1,885plus GST, rate not stated0%₹92,019 to ₹92,3582.00 to 2.36%
5PayoneerLocal bank transfer to Payoneer receiving account detailsMarketplace payouts such as Amazon or Upwork₹0no GST stated1 to 4%₹90,473 to ₹93,3011.00 to 4.00%
6PayPalInternational commercial transaction received into a PayPal account (PayPal checkout or invoice)Clients paying by card or PayPal balance₹4,175no GST stated3 to 4%₹86,465 to ₹87,3667.30 to 8.25%

Not estimated because pricing is not fully published: Cashfree Payments, Dodo Payments, PingPong, Stripe, Tazapay, TransFi, Wise.

Where a provider says GST applies to its fee but not at what rate, the range runs from no GST to 18%, the rate Skydo, Stripe and Winvesta state on their pages. Estimates use each provider's published fee, conversion markup, GST on fees and FIRA charge, checked 2026-10-28, against the reference rate. They exclude charges taken by intermediary banks and your own bank, and the rate a provider actually applies at the time of conversion. Check the provider's pricing page before you choose. The order is calculated only from these published numbers; no provider can pay to change its position, and there are no affiliate links.

Indian lawyers advise foreign clients far more often than courtroom work suggests. A Bengaluru technology lawyer reviewing a US startup's Indian data protection position, a Mumbai arbitration counsel preparing submissions for a Singapore-seated dispute, a Chandigarh advocate handling an NRI's family settlement from Canada, and a Noida legal process outsourcing (LPO) team doing contract review for a London firm all bill clients abroad. The export rules are mostly the same as for other services, with a few traps that matter more for law.

This page covers payment routes, platforms, the export test, legal-specific GST traps, purpose codes, bank filings and income tax. It does not cover Bar Council of India conduct rules, which you should check separately. Confirm tax outcomes with a chartered accountant (CA).

International clients usually pay legal professionals in India by SWIFT wire after vendor onboarding, often against an engagement letter and a retainer. Individuals such as NRIs may pay by card link or through a payment provider.

  • Foreign law firms and companies: Pay by wire against an engagement letter, often with an advance retainer. See advance payment against exports.
  • LPO clients: Pay monthly invoices for review work under a services agreement.
  • Individuals and NRIs: May pay a fixed fee by card link or through a payment provider.

For example, the London firm pays the Noida LPO team's monthly invoice by wire, while the NRI in Canada pays the Chandigarh advocate's fixed fee by card.

Where does the money go between a foreign client and the Indian bank account of legal professionals in India?

The money from a foreign client reaches legal professionals in India through their Indian bank, the authorised dealer (AD) bank, either directly as a wire or through a payment provider that collects it first. The AD bank may credit the export proceeds only after satisfying itself that the transaction is genuine, and it updates the export entry in the Export Data Processing and Monitoring System (EDPMS) at the same time.11

  • Direct wire: The client's bank sends the payment to the AD bank, which credits rupees and reports the transaction, with its purpose code, in RBI's Foreign Exchange Transaction Electronic Reporting System (FETERS).11
  • Payment provider: A cross-border payment aggregator (PA-CB) collects the payment and pays it to the AD bank, and must give the AD bank the documents or information the exporter needs.13
  • Proof of receipt: Banks send electronic inward remittance messages (IRMs) to DGFT, and the exporter self-certifies an e-BRC against them.12

Whichever route the client uses, the AD bank is where the export is recorded, so the invoice, purpose code and EDF all meet there.

Legal professionals in India can receive international payments by SWIFT wire to an Indian bank, through local account details from a payment provider, and through PayPal, card or payment links. Each route differs in who sets the cost and what proof of receipt you get.

A SWIFT wire sends the client's payment from its bank to the Indian AD bank of legal professionals in India, which credits rupees once it is satisfied the transaction is genuine.11

  • How it works: You give the client your bank's SWIFT details; the client's bank sends the payment, and your bank converts it and reports it with a purpose code.11
  • Pros: No third-party account to open; the bank's IRM lets you self-certify an e-BRC on DGFT.12
  • Cons: Charges and the exchange rate vary from bank to bank, so compare your bank's published charges.11
  • Cost: As set in the bank's published policy, which must list charges for each process and keep them reasonable and proportional.11
  • Settlement: Depends on the banks involved and is not fixed in advance.
  • FIRA: Ask your bank how it issues a FIRA or e-FIRC; the e-BRC comes from its IRM data.12
  • Ideal for: Foreign law firms and companies paying retainers and engagement fees.

Local account details let a foreign client pay legal professionals in India by a domestic transfer in its own country, after which the provider converts the money and pays rupees into the Indian bank account.

  • How it works: A cross-border payment aggregator (PA-CB) or similar provider collects the payment and passes the documents your AD bank needs.13
  • Pros: The client pays as it pays a local supplier.
  • Cons: Each PA-CB transaction is capped at ₹25 lakh, and providers differ in who can sign up.13
  • Cost: The provider's published fee and FX markup; the calculator at the top of this page compares them.
  • Settlement: The provider's published settlement time.
  • FIRA: Check whether the provider issues a FIRA or e-FIRC for every payment.
  • Ideal for: Repeat corporate clients in the US, UK or Europe paying by domestic transfer.

PayPal, card payments and payment links let a client pay legal professionals in India by card or wallet, and the provider settles rupees to the Indian bank account.

  • How it works: You send a payment link or invoice; the client pays by card or PayPal balance.
  • Pros: Familiar to small clients and individuals.
  • Cons: Providers price card and PayPal routes separately from bank transfers, so the same invoice can cost more.
  • Cost: The provider's published card or PayPal fee; see the calculator.
  • Settlement: The provider's published settlement time.
  • FIRA: Check what the provider issues for each payment.
  • Ideal for: NRIs and individual clients paying a fixed fee.

The platforms that suit legal professionals in India depend on how their clients pay: by bank transfer, card, PayPal balance or a marketplace payout. The table lists the providers in this site's USD cost model, ordered by estimated cost on published fees, cheapest first, with providers that do not publish enough pricing to estimate listed after, A to Z.

PlatformBest for
SkydoLocal bank transfers from major markets14
RazorpayLocal transfers from the US, UK and eurozone15
Karbon BusinessUS bank transfers and marketplace payouts16
WinvestaLocal transfers with a published per-payment fee1718
PayoneerMarketplace payouts such as Amazon or Upwork19
PayPalClients paying by card or PayPal balance20
Cashfree PaymentsRegistered businesses paid by local transfer2122
Dodo PaymentsSoftware and digital product sellers2324
PingPongCollecting marketplace and processor payouts2526
StripeCard checkout and subscriptions2728
TazapayCompanies taking card or local payment methods2930
TransFiPayment links shared in chat, including stablecoins3132
WiseBank transfers to local account details33

The platform cost comparison and how to choose a payment platform apply the same criteria to every provider.

The INR that legal professionals in India receive on these three invoice sizes depends on each provider's published fees and conversion markup, and the table below works it out at today's exchange rate.

PlatformBest forINR on USD 2,000INR on USD 5,000INR on USD 10,000Cost on USD 5,000
SkydoMost INRTransfer to Skydo local account details or international SWIFT accountLocal bank transfers from major markets₹1,86,373₹4,67,991₹9,39,2060.68%
Karbon BusinessBank transfer to a Karbon virtual USD accountUS bank transfers and marketplace payouts₹1,86,262 to ₹1,86,601₹4,65,655 to ₹4,66,503₹9,31,311 to ₹9,33,0071.00 to 1.18%
RazorpayMoneySaver Export Account: bank transfer to virtual account details (Standard plan)Local transfers from the US, UK and eurozone₹1,86,262 to ₹1,86,601₹4,65,655 to ₹4,66,503₹9,31,311 to ₹9,33,0071.00 to 1.18%
WinvestaGlobal Collections Account, standard plan (up to 2,000 a month per currency)Local transfers with a published per-payment fee₹1,85,951₹4,65,377₹9,31,0881.24%
PayoneerLocal bank transfer to Payoneer receiving account detailsMarketplace payouts such as Amazon or Upwork₹1,80,947 to ₹1,86,601₹4,52,367 to ₹4,66,503₹9,04,734 to ₹9,33,0071.00 to 4.00%
PayPalInternational commercial transaction received into a PayPal account (PayPal checkout or invoice)Clients paying by card or PayPal balance₹1,72,958 to ₹1,74,760₹4,32,436 to ₹4,36,940₹8,64,899 to ₹8,73,9087.27 to 8.23%

Ranked by INR received on USD 5,000. Reference rate: European Central Bank data for 13 November 2026. Fees, conversion markup, GST on fees and FIRA charges as published by each provider, checked 28 October 2026. Ranges appear where a provider publishes a range or does not state its GST rate. Intermediary bank charges are excluded. See the methodology.

Note: A single payment through a PA-CB cannot exceed ₹25 lakh, for inward and outward transactions alike.13 Check how a provider handles an invoice above that limit before you send it.

Beyond cost, legal professionals in India should check proof of receipt, purpose code handling, settlement time, eligibility and regulatory status, because these decide whether a payment closes cleanly with the bank and the GST return.

  • FIRA: Whether the provider issues a FIRA or e-FIRC for every payment, and at what cost.
  • Purpose code: Whether you can set the purpose code per payment, for example P1004 for legal work and P1015 for a tax opinion.6
  • Fees and FX: The fee it publishes and its FX markup over the mid-market rate.
  • Settlement: How long money takes to reach your Indian account.
  • Eligibility and limits: Who can sign up (individual, proprietor, partnership, company) and per-transaction limits.
  • Regulatory status: Whether the provider is authorised, which you can check against RBI's payment aggregator list.

The compare hub applies the same tests to each provider.

Banks are covered in international payments through banks.

Legal professionals exporting services need an Export Declaration Form (EDF) for each month's invoices, the right purpose code, an LUT if GST registered, and proof of each receipt, and they must realise fees within the realisation period.14

DocumentWhat it doesWhenBest for
FIRA or e-FIRCProves a foreign payment reached your accountFor each paymentMatching each fee receipt to its invoice
e-BRCSelf-certified on DGFT from the bank's IRM12After the bank reports the receiptShowing the export was realised
Purpose codeTells the bank what the payment is for56When the money arrivesEvery receipt; P1004 for legal work
LUTLets a registered practice invoice exports without IGST1Each financial yearGST-registered practices
EDFDeclares the export to the bank4Within 30 days from the end of the invoice month, or by the payment dateEvery service exporter from 1 October 2026

Legal work for a foreign client is an export of services when all five conditions in section 2(6) of the Integrated Goods and Services Tax (IGST) Act are met: you are in India, the client is outside India, the place of supply is outside India, you are paid in convertible foreign exchange (or rupees where the Reserve Bank of India permits), and you are not billing your own establishment.1 For most advice and drafting, section 13(2) makes the place of supply the client's location.1 Exports are zero-rated under section 16, so a registered practice invoices under a Letter of Undertaking (LUT).1

  • Property matters in India: Section 13(4) sets the place of supply for services supplied directly in relation to an immovable property, including services by experts and estate agents, as the property's location.1 Title searches, sale documentation or property litigation for an NRI may fall here; general succession advice is less clearly covered. Get a view before invoicing.
  • Meetings that need the client in India: Section 13(3)(b) puts the place of supply where the service is performed when it is supplied to an individual and needs the physical presence of the recipient or a person acting for the recipient.1
  • Who the client is: An NRI living abroad is located outside India, but a foreign company's Indian subsidiary or an Indian law firm acting for a foreign client is in India, so your invoice to it is domestic.
  • Referral and local-counsel fees: A fee for introducing a foreign client to another firm, without doing the work yourself, can be an intermediary service under section 2(13).1 Circular No. 159/15/2021-GST says at least three parties are needed and that sub-contracting the main service is not intermediary work.3 Section 157 of the Finance Act, 2026 omitted section 13(8)(b) from 30 March 2026, so intermediary services now follow the recipient's location.2 See intermediary services under GST.

The place of supply guide covers the full set of rules.

Legal fees from abroad are usually reported under P1004 in the RBI receipt list issued with A.P. (DIR Series) Circular No. 84 of 29 February 2012.5 RBI descriptions, as reproduced by HDFC Bank:6

CodeDescription (RBI list)Best for
P1004Legal servicesAdvice, drafting, disputes, LPO review work
P1015Tax consulting servicesTax opinions and tax structuring
P1006Business and management consultancy and public relations servicesNon-legal advisory, such as market-entry strategy

Ask the bank to use P1004 for legal work and keep it consistent with the invoice description.6 See P1004 purpose code and the purpose code finder.

From 1 October 2026, the Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026 require every exporter of services to submit an Export Declaration Form (EDF), generally within 30 days from the end of the month of invoicing; one EDF can cover all exports to one or more recipients in a month, and exporters of services other than software may submit it on or before the date payment is received.4 Fees must be realised within nine months from the invoice date, or twelve months if invoiced or settled in rupees.4

Long matters can strain the nine-month window. For example, a firm that bills a Hong Kong client on 15 December 2026 must be paid by 15 September 2027 unless the bank extends the period.4 See EDF for service exporters and extension of the realisation period.

International fees of a legal professional resident in India are taxed in India as professional income, and legal work is a listed specified profession. Section 62(4) of the Income-tax Act, 2025 lists legal, medical, engineering, architectural, accountancy, technical consultancy, interior decoration, information technology and company secretary, plus professions notified by the Central Board of Direct Taxes (CBDT).8

  • Presumptive scheme: Section 58(2), Table row 3 (formerly section 44ADA) allows 50% for resident individuals and partnership firms (not LLPs) with gross receipts up to ₹50 lakh, or ₹75 lakh if cash receipts are within 5%.7
  • LLPs and companies: An LLP or company practice uses normal computation.7

See specified professions under section 62, the new section number for 44ADA and the presumptive tax calculator.

A foreign client that withholds tax on legal fees reduces the receipt, but you may be able to claim a foreign tax credit using Form 44 under rule 76 of the Income-tax Rules, 2026 (Form 67 for income up to 31 March 2026).9 Clients applying a treaty rate may ask for a tax residency certificate and Form 41 under rule 75.9 For US clients, income from personal services is sourced where the services are performed.10 Read foreign withholding tax, DTAA for exporters and Form 44.

How did we verify this?

We checked this page against the sources below on 30 October 2026. Provider fees, conversion markups and RBI payment aggregator (PA-CB) status were checked on 28 October 2026. Rupee amounts use European Central Bank reference rates for 13 November 2026. Read our methodology or report an error.

  1. [1]Maharashtra GST Department: IGST Act, 2017 (as amended), sections 2(6), 2(13), 13 and 16 (state reproduction of the Act; it predates the 2026 omission of section 13(8)(b))
  2. [2]The Finance Act, 2026 (No. 4 of 2026), section 157, Gazette of India, 30 March 2026
  3. [3]CBIC Circular No. 159/15/2021-GST dated 20 September 2021, scope of intermediary
  4. [4]RBI: Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026, amended up to 22 September 2026, regulations 1, 3 and 5
  5. [5]RBI: A.P. (DIR Series) Circular No. 84 (RBI/2011-12/413) dated 29 February 2012, Compilation of R-Returns: Reporting under FETERS
  6. [6]HDFC Bank: Inward Remittance Purpose Codes (bank reproduction of the RBI list, checked 28 October 2026)
  7. [7]Income Tax Department: Income-tax Act, 2025, section 58 (presumptive taxation)
  8. [8]Income Tax Department: Income-tax Act, 2025, section 62 (specified profession, sub-section (4))
  9. [9]Income Tax Department: Income-tax Rules, 2026, rules 75 and 76, Forms 41 and 44
  10. [10]IRS: Nonresident aliens, source of income (checked 28 October 2026)
  11. [11]RBI: Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026, regulations 4(2), 18 and 19 (crediting of export proceeds, bank reporting, published charges policy) (checked 2026-10-30)
  12. [12]DGFT: eBRC system, self-certification of eBRC from bank inward remittance messages (IRMs), Trade Notice 33/2023-24 dated 10 November 2023 (checked 2026-10-30)
  13. [13]RBI: Master Direction on Regulation of Payment Aggregator, 15 September 2025, paragraph 11 (PA-CB limits and documents to the AD bank) (checked 2026-10-30)
  14. [14]Skydo FAQs, What countries can I get paid locally through Skydo? (checked 2026-10-28)
  15. [15]Razorpay Docs, International Bank Transfer (MoneySaver Export Account) (checked 2026-10-28)
  16. [16]Karbon Business, Karbon for Freelancers (checked 2026-10-28)
  17. [17]Winvesta FAQs, What are the charges for the global collections account? (checked 2026-10-28)
  18. [18]Winvesta FAQs, What currencies are available with local accounts? (checked 2026-10-28)
  19. [19]Payoneer, How to use Payoneer in India (last modified 18 September 2026, checked 2026-10-28)
  20. [20]PayPal India, User Agreement for PayPal Services (last updated 13 January 2025) (checked 2026-10-28)
  21. [21]Cashfree Payments Docs, Global Collections overview (checked 2026-10-28)
  22. [22]Cashfree Payments Docs, Global Collections: Collection Accounts (checked 2026-10-28)
  23. [23]Dodo Payments, Master Service Agreement, last updated 26 February 2026 (checked 2026-10-28)
  24. [24]Dodo Payments, Merchant of Record for Global SaaS (checked 2026-10-28)
  25. [25]PingPong India, home page (checked 2026-10-28)
  26. [26]PingPong India, Freelancers and Service Providers (checked 2026-10-28)
  27. [27]Stripe Docs, Accept international payments from India (checked 2026-10-28)
  28. [28]Stripe Support, Accepting international payments from Stripe accounts in India (checked 2026-10-28)
  29. [29]Tazapay, General Account Holder Terms and Conditions, last updated 15 September 2026 (checked 2026-10-28)
  30. [30]Tazapay Knowledge Base, Are there country differences for the documents needed for KYB? (checked 2026-10-28)
  31. [31]TransFi, BizPay product page (checked 2026-10-28)
  32. [32]TransFi Help Center, How can I get started? What documents are needed? BizPay (checked 2026-10-28)
  33. [33]Wise Help Centre, Receiving payments for Indian businesses (checked 2026-10-28)

Frequently asked questions

Which purpose code fits a tax opinion for a foreign client?+

A tax opinion for a foreign client may fit P1015, described in the RBI list as "Tax consulting services", while advice, drafting, disputes and LPO review work fit P1004, "Legal services". Non-legal market-entry strategy may fit P1006. Your bank records the final code, so describe the work clearly on the invoice.6

Is advising an NRI on selling a flat in Pune an export of services?+

Advising an NRI on selling a Pune flat is possibly not an export. Section 13(4) of the IGST Act puts the place of supply of services directly in relation to immovable property, including services by experts, where the property is located. Whether legal advice is "directly in relation" depends on the facts, so confirm with a chartered accountant.1

Is document review for a US law firm by an Indian LPO an export?+

Document review for a US law firm by an Indian LPO is usually an export of services. The LPO supplies its own service to the US firm, and Circular No. 159/15/2021-GST says sub-contracting the main service is not an intermediary service. The other section 2(6) conditions, such as payment in foreign exchange, still apply.31

Can a lawyer use the 50% presumptive income scheme?+

Legal is listed in section 62(4) of the Income-tax Act, 2025, so a resident individual or partnership firm (not an LLP) with gross receipts up to ₹50 lakh, or ₹75 lakh if cash receipts are within 5%, may declare 50% of receipts as income under section 58(2), Table row 3, formerly section 44ADA.78

Is a referral fee from a foreign law firm an export of services?+

A referral fee for introducing a client to a foreign law firm, without doing the legal work, can be an intermediary service under section 2(13) of the IGST Act. Section 157 of the Finance Act, 2026 omitted section 13(8)(b) from 30 March 2026, so intermediary services now follow the recipient's location for place of supply.12

How long can a foreign client take to pay legal fees?+

From 1 October 2026, legal fees from a foreign client must be realised within nine months from the invoice date, or twelve months if invoiced or settled in rupees. For example, a Hong Kong client billed on 15 December 2026 must pay by 15 September 2027 unless the bank extends the period.4

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

Purpose codes

What is purpose code P1004?

P1004 is the RBI receipt purpose code for legal services. Which Indian lawyers and legal firms use it, how it differs from P1005 and P1015, and SAC mapping.

GST

How is the place of supply decided when you export services from India?

How IGST section 13 decides the place of supply when your client is abroad: the recipient-location rule, the exceptions that keep it in India, and 2026 changes.

RBI and FEMA

What is the EDF and how do service exporters file it from October 2026?

From 1 October 2026 every Indian service exporter files an Export Declaration Form (EDF). Who files, the 30-day deadline, where it goes and examples by profession.

Tax

Which professions are 'specified professions' under section 62 of the Income-tax Act, 2025?

The specified professions in section 62(4) of the Income-tax Act, 2025, what they decide (books, presumptive tax), and how designers, writers and tutors fit.

Tax

What should an Indian exporter do when a foreign client withholds tax?

Why a foreign client or platform may withhold tax from an Indian exporter's fee, how treaty caps limit it, and how the tax is credited in India from 2026.