How should a web development agency in India receive payments from foreign clients?

Web development agencies bill clients all over the world. For example, a Surat Shopify agency builds stores for Australian fashion brands, a Mohali WordPress shop maintains dozens of sites on retainer for UK dental clinics, a Vadodara Webflow studio does white-label builds for a New York marketing agency, and a Bhubaneswar team rebuilds a Canadian non-profit's site on a fixed fee.

Agencies have a mix of income that freelancers rarely do: white-label work, hosting resale, plugin licences and referral commissions. This page covers how agencies are paid, then how each income line is treated, purpose codes, EDF and tax. It is general information; confirm your own facts with a chartered accountant (CA).

How do international clients pay web development agencies?

International clients usually pay web development agencies a deposit, then milestones or a monthly retainer, by bank wire, local receiving account, card or invoice link, or PayPal.

• Deposit: deposits received before invoicing are advances; see advance payment against exports.
• Milestones: see milestone payments.
• Retainers: see retainer billing.

Where does the money go between a foreign client and a web agency's bank?

Money from a foreign client passes through the client's bank or card, the route the agency uses, a conversion into rupees and then the agency's Indian bank account, where it is reported under a purpose code in group P08 of RBI's list.⁸⁹

• Client side: the client pays a wire, a local transfer, a card link or PayPal.
• Route: the provider or bank may charge a fee.
• Conversion: published fees and FX conversion differ by provider.
• Bank: the agency matches each receipt to its invoice and to that month's EDF.¹⁰

What are the ways for web development agencies to receive international payments?

Web development agencies receive international payments by bank wire, local receiving accounts from payment providers, card or invoice links, and PayPal.

How does a bank wire work for a web development agency?

A bank wire moves the client's payment from its bank to the agency's Indian bank account against an invoice.

• How it works: the client pays your invoice by wire.
• Pros: suits larger clients and deposits.
• Cons: bank fees and the bank's conversion rate apply.
• Cost: bank fees and conversion rate.
• Settlement: depends on the banks involved.
• FIRA: ask your bank for an inward remittance advice for each receipt.
• Ideal for: larger clients.

How does a local receiving account work for a web development agency?

A local receiving account from a payment provider lets a US or UK client pay by domestic transfer.

• How it works: the client pays local account details and the provider pays rupees to your Indian bank.
• Pros: the client makes a local transfer.
• Cons: check whether firms and LLPs can sign up, and whether there is multi-user access.
• Cost: published fees and FX conversion.
• Settlement: depends on the provider.
• FIRA: check whether a FIRA is issued per payment.
• Ideal for: monthly retainers from US or UK clients.

How does a card or invoice link work for a web development agency?

A card or invoice link lets a client pay an invoice by card online.

• How it works: you send a payment link with the invoice.
• Pros: quick for smaller clients.
• Cons: card fees vary by provider.
• Cost: published fees vary by provider.
• Settlement: depends on the provider.
• FIRA: check the provider's published terms.
• Ideal for: smaller clients.

How does PayPal work for a web development agency?

PayPal collects the client's payment into the agency's PayPal account and withdraws it to an Indian bank account.

• How it works: the client pays a PayPal invoice.
• Pros: familiar for one-off jobs.
• Cons: percentage fees and a conversion charge apply.
• Cost: check PayPal's published fees.
• Settlement: depends on the withdrawal.
• FIRA: check PayPal's published terms.
• Ideal for: one-off jobs.

Which platforms are best for web development agencies?

No single platform is best for every web development agency; the right one depends on how your clients pay, your entity type and your usual invoice size.

The platforms below are ordered by estimated cost on a $5,000 receipt from published fees, cheapest first, using the midpoint where a provider publishes a range; providers without enough published pricing follow, A to Z.^{18192021222325262728293132333536373940} The order is data only and is not a recommendation for web development agencies.

See payment platforms for agencies and the comparison hub. This site does not recommend any of them.

How much INR do web development agencies receive on $2,000, $5,000 and $10,000?

The INR a web development agency receives on $2,000, $5,000 and $10,000 depends on each platform's published fees and today's exchange rate.^{18192021222325262728293132333536373940} The table below calculates it live.

What should web development agencies look for beyond cost?

Web development agencies should compare providers on documents, access and entity eligibility as well as cost.

• FIRA: a FIRA per payment.
• Purpose code: purpose code handling.
• Fees: published fees and FX conversion.
• Settlement: settlement time.
• Team access: multi-user access.
• Eligibility: whether firms and LLPs can sign up.

What compliance documents do web development agencies need?

Web development agencies need an LUT once GST registered, export invoices with the rule 46 endorsement, the correct purpose code, and an Export Declaration Form (EDF) for each month's invoices from 1 October 2026.⁴¹⁰¹⁶

When is web development for a foreign client an export of services?

Web development for a client located abroad is an export of services when all five conditions in section 2(6) of the IGST Act are met: agency in India, client outside India, place of supply outside India, payment in convertible foreign exchange, and not billing your own establishment.¹ For remote builds and maintenance, the place of supply is the client's location under section 13(2).² Exports are zero-rated under section 16.³

Which web agency income lines need care?

Several agency income lines are treated differently from the build itself.

• White-label work for a foreign agency: your customer is the foreign agency, and you supply the main service on your own account. CBIC Circular No. 159/15/2021-GST says a sub-contractor is not an intermediary.⁶
• Work routed through an Indian agency: if an Indian agency holds the client contract and pays you, your invoice is domestic.
• Hosting, domains and plugin licences you resell: these are separate supplies from the build; bill them on separate lines and check how each is treated, especially where you buy from foreign providers and pay reverse charge. See reverse charge on imported SaaS tools.
• Referral commissions: commissions from foreign hosting or theme companies can be intermediary services. Section 157 of the Finance Act, 2026 omitted section 13(8)(b) from 30 March 2026, so their place of supply is now the recipient's location and they can qualify as exports.²⁷ See intermediary services under GST.
• Clients' Indian subsidiaries: invoices to them are domestic.

What GST steps apply to a web development agency?

GST registration is not required while aggregate turnover, including exports, stays within ₹20 lakh (₹10 lakh in special category States).⁵ Registered agencies file an LUT, use the rule 46 endorsement and track rule 96A, which makes IGST payable if an LUT invoice is unpaid after one year from the invoice date, or after the period allowed under FEMA including any RBI-permitted extension if that is later.⁴¹⁶ The agency export checklist covers the set-up.

Which RBI purpose codes fit web agency receipts?

Web agency receipts usually fall in group P08 of RBI's purpose code list.⁸⁹

The P0802 description refers to the SOFTEX form, and RBI Circular No. 20 superseded the SOFTEX circulars from 1 October 2026,¹² so it is unclear whether banks now expect P0802 or P0807 for web builds. Ask your bank and use the same code consistently. See P0802 vs P0807 and the purpose code finder.

What does the EDF mean for a web development agency?

A web development agency files an Export Declaration Form (EDF) for its exports from 1 October 2026.¹⁰ Websites are code, and the 2026 Regulations define software to include "any computer programme" and "design" on a non-physical medium, so most banks are likely to treat builds as software.¹⁰ Software exporters file within 30 days from the end of the month of invoicing; the payment-date option is only for non-software services.¹⁰

One EDF can cover all of a month's invoices, which suits agencies with many small retainers.¹⁰ Each invoice must be realised within nine months of its date.¹¹ See EDF for service exporters, STPI registration and export to SEZ units.

What tax applies to international income for web development agencies?

The legal form of a web development agency decides its income tax route under the Income-tax Act, 2025.¹³

The table follows section 58.¹³ Information technology is a specified profession under section 62(4), which supports treating web development as professional income.¹⁴ Section 58's business scheme is not available to anyone carrying on a specified profession.¹³ For example, a Surat proprietor with ₹45 lakh of receipts would declare at least ₹22.5 lakh under the professional scheme.¹³ Growing agencies often cross the limits; see sole proprietor vs LLP.

Agencies with a sales entity abroad and delivery in India must price intra-group charges at arm's length under section 161(1).¹⁵ See transfer pricing for Indian subsidiaries.