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PayPal, Wise or Payoneer: What the EDF That Replaced SOFTEX Means for Animation Studios Getting Paid Abroad

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Editorial team, serviceexportguide.com
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Short answer

RBI Circular No. 20 superseded the SOFTEX circulars from 1 October 2026.1 From that date every service exporter, animation studios included, files an Export Declaration Form (EDF) with its AD bank.2 Receipts must be realised within nine months of the invoice.3 PayPal charges 4.40% plus a fixed fee per international commercial transaction.4 Wise issues an e-FIRC for each transfer.5

Applies toRules involvedPlatforms comparedLast verified
Animation and multimedia studios in India billing clients abroadFEMA (Export and Import of Goods and Services) Regulations, 2026: EDF and nine-month realisation23; IGST Act section 16 and LUT67Razorpay, Karbon Business, Skydo, Payoneer, PayPal, Wise4589101128 October 2026 (rules and published fees)212

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.

Animation studios in India export storyboards, 2D and 3D animation, VFX shots and explainer videos to clients in the US, UK, Europe and elsewhere. The question of how SOFTEX applies to that work has a short answer for 2026: RBI A.P. (DIR Series) Circular No. 20 superseded the earlier SOFTEX circulars with effect from 1 October 2026.1 The rule that now matters is the Export Declaration Form (EDF) under the FEMA (Export and Import of Goods and Services) Regulations, 2026, which every exporter of services files with its authorised dealer (AD) bank.2

This page keeps the platforms named in the question (PayPal, Wise and Payoneer) and replaces SOFTEX with the EDF that took its place. The history of the change is covered in SOFTEX replaced by EDF, and the broader persona view is in international payments for video editors. Confirm your own facts with a chartered accountant (CA).

How do PayPal, Wise and Payoneer compare for animation studios in India?

PayPal, Wise and Payoneer differ for animation studios mainly in how the client pays (card or PayPal balance with PayPal, local bank transfer with Wise and Payoneer) and in what each charges to convert to INR.41120 The table adds the three providers with the lowest estimated cost on a USD 2,000 receipt from published fees, and is ordered by that estimate, cheapest first, with Wise (no published INR conversion percentage) after.891020

PlatformBest forFeeFX markupSettlementFIRARBI PA-CB statusSource
RazorpayLocal transfers from the US, UK and eurozone211% per MoneySaver bank transfer plus GST, with a flat fee of ₹1,000 below ₹1,00,000; international cards up to 3% plus GST822Razorpay says 0% FX markup on MoneySaver bank transfers; card conversion markup not published823T+1 for push bank transfers (ACH, FPS, SEPA, SWIFT); around T+5 business days for ACH debit Flash Links2124Foreign Inward Remittance Statement (FIRS) emailed within 24 hours after settlement for bank transfers2125Razorpay Payments Private Limited is listed as PA-CB for inward and outward transactions12Razorpay pricing and docs; RBI list8122122232425
Karbon BusinessUS bank transfers and marketplace payouts261% transaction fee, listed on Karbon's PayPal alternative page90% (freelancer page); 0.5% to 1.0% (PayPal alternative page)269Karbon says 24 to 48 hours26FIRA for every transaction from an unnamed banking partner; cost not published26Not on the RBI list itself; its terms run export receipts under a partner the RBI lists as a PA-CB1227Karbon pages and terms; RBI list9122627
SkydoLocal bank transfers from major markets28USD 19 plus GST up to USD 2,000; USD 29 plus GST from USD 2,001 to USD 10,000; 0.3% plus GST above USD 10,00010290% markup on the mid-market rate (product page); retail rate set by Skydo or its partner banks (terms)3031Skydo's terms say T+1 to T+3 business days, depending on currency and corridor31Free FIRA on every payment received, Skydo says3032Skydo Technologies Private Limited is listed as PA-CB-I and O, authorised 8 January 202612Skydo FAQs and terms; RBI list101229303132
PayoneerMarketplace payouts such as Amazon or Upwork33Payment request by card 2.90% + $0.49; ACH bank debit (US only) 1%; receiving-account fees are shown in your account111% to 4% of the amount when converted to INR on withdrawal, depending on region and volume11Within 24 hours (multi-currency account page); within 48 hours (pricing page)1134Free digital FIRA for each transaction from Payoneer's partner AD bank, within 24 to 72 hours19In-principle PA-CB authorisation on 22 January 2026; RBI lists the application as under process as of 16 October 2026; Payoneer also lists an RBI OPGSP registration353637Payoneer pricing, help and press pages; RBI status list111934353637
PayPalClients paying by card or PayPal balance384.40% plus a fixed fee (0.30 USD for USD) per international commercial transaction43.0% or 4.00% above the base exchange rate, depending on the conversion type4Up to 5 business days to reach the Indian bank account39Free weekly digital FIRA from February 2026; custom FIRA at 100 INR plus 18% GST per transaction40Listed as an existing PA-CB with in-principle authorisation granted, as on 16 October 202636PayPal fee, help and FIRA pages; RBI status list4363940
WiseBank transfers to local account details5Equivalent of 2 USD per transfer to the INR account (help article); free e-FIRC (receive pricing page); 6.11 USD per USD wire or Swift receipt in its business fee table; 18% GST on fees54120Mid-market rate plus a conversion fee; no percentage published for INR20Wise says INR reaches the Indian bank within 1 to 2 days5e-FIRC for each transfer, emailed within 3 working days5Wise Payments India Private Limited is listed as PA-CB-I, authorised 12 March 202612Wise help and pricing pages; RBI list5122041

A studio paid by a streaming platform's accounts team usually receives a bank transfer, while a small agency client may prefer a PayPal or card payment, so many studios keep two routes open.

Which RBI and GST rules apply to animation studios?

The rules that apply to an animation studio paid from abroad are the 2026 FEMA export regulations (EDF, realisation and bank reporting), the IGST Act export and zero-rating provisions, and the LUT procedure for GST-registered studios.26717

RuleBest for (who it applies to)Plain meaningSource
EDF, regulations 3 and 4 of the 2026 RegulationsEvery animation studio exporting services from 1 October 2026File the EDF with the AD bank within 30 days from the end of the invoice month, or on or before the date payment is received2RBI2
Realisation period, regulation 5Studios with long production milestonesCollect the full value within nine months of the invoice date, or twelve months if invoiced in rupees3RBI3
Circular No. 20 dated 16 January 2026Studios that filed SOFTEX forms beforeThe SOFTEX circulars are superseded from 1 October 20261RBI1
IGST Act section 2(6)Studios billing a client located outside IndiaAll five export conditions must hold, including payment in convertible foreign exchange17CBIC17
IGST Act section 16 and LUT in FORM GST RFD-11GST-registered studiosExports are zero-rated and can be invoiced without IGST under an LUT filed for each financial year67CBIC, GST portal67
PA-CB limit, Master Direction paragraph 11(d)Studios paid through payment aggregatorsEach cross-border payment aggregator transaction is capped at ₹25 lakh15RBI15

Place of supply for most remote animation work is the client's location under section 13(2) of the IGST Act, with special rules in sections 13(3) to 13(13).42

Which purpose code applies to animation studios?

Animation production is usually reported under purpose code P1101, and the code changes when the work is advertising, software or the licensing of a finished film.1314 Purpose codes for receipts come from RBI A.P. (DIR Series) Circular No. 84 of 29 February 2012.43

CodeBest for (transaction type)Official RBI descriptionSource
P1101Animation production, VFX and post-production for films, series and videoAudio-visual and related services like Motion picture and video tape production, distribution and projection services.HDFC, DGFT1314
P1103Animation made for broadcast television or radio channelsRadio and television production, distribution and transmission servicesHDFC, DGFT1314
P1007Animated advertisements and brand campaignsAdvertising, trade fair serviceHDFC, DGFT1314
P0902Licensing rights in a finished animated film or characterReceipts for use, through licensing arrangements, of produced originals or prototypes (such as manuscripts and films), patents, copyrights, trademarks, industrial processes, franchises etc.HDFC, DGFT1314
P0802Animation software, game engines or interactive buildsSoftware consultancy/implementation (other than those covered in SOFTEX form)HDFC, DGFT1314

DGFT maps audiovisual post-production (SAC 999613) and motion picture production (SAC 999612) to P1101.14 The purpose code finder helps when a project mixes several kinds of work.

Which option is cheapest at $500, $2,000 and $5,000?

The cheapest option for an animation studio depends on invoice size, because some providers charge a flat fee per payment and others a percentage.4810 The table below works out INR received at today's rate from each provider's published fees.

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%
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%

Not estimated because pricing for USD is not fully published: Wise.

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.

For example, on a $2,000 storyboard invoice paid by bank transfer, Razorpay's 1% MoneySaver fee plus GST costs 1.00 to 1.18% of the invoice and Skydo's USD 19 plus GST costs about 1.12%.810 At $5,000, Skydo's USD 29 plus GST is about 0.68%.10 The same $2,000 paid through PayPal costs about 7.28 to 8.24% once the 4.40% fee, the 0.30 USD fixed fee and the 3.0% or 4.00% conversion fee are applied.4

What documents follow each payment?

Each foreign payment to an animation studio produces a receipt advice (FIRA or e-FIRC), and the studio adds an EDF, an e-BRC and, if GST registered, an LUT-endorsed export invoice.271644

DocumentBest forWhat it doesSource
FIRA or e-FIRCMatching each milestone payment to its invoiceProves the foreign payment reached the studio; PayPal, Wise and Payoneer each issue one51940Provider pages51940
e-BRCGST refund claims and export recordsSelf-certified by the exporter on the DGFT portal from the bank's inward remittance messages16DGFT16
EDFEvery studio exporting from 1 October 2026Declares the export to the AD bank within 30 days from the end of the invoice month2RBI2
LUTGST-registered studiosLets the studio invoice exports without IGST for the financial year745GST portal, CBIC745
Export invoice endorsementGST-registered studios under an LUTRule 46 requires the export endorsement and the recipient's name, address and country44CBIC44

How the EDF works for PayPal and payment aggregator receipts in practice is not spelled out in the regulations, so ask your AD bank how it wants those receipts linked to each EDF.2 See EDF for service exporters and FIRC, FIRA and e-BRC compared.

What changes in 2026 for animation studios?

Four changes in 2026 affect animation studios paid from abroad: the 2026 FEMA Regulations, the end of SOFTEX, the return to a nine-month realisation period and the new Income-tax Act.124647

  • 2026 Regulations: The FEMA (Export and Import of Goods and Services) Regulations, 2026 came into force on 1 October 2026 and replaced the 2015 export regulations.2
  • SOFTEX superseded: Circular No. 20 superseded the SOFTEX circulars from 1 October 2026, and the EDF now covers software and non-software services alike.12
  • Realisation period: The period moved from nine to fifteen months on 14 November 2025, returned to nine months from 5 June 2026, and stays at nine months from the invoice date under the 2026 Regulations.34648
  • Bank charges policy: Regulation 19 requires each AD bank to publish a policy listing documents, timelines and charges on its website.2
  • Income tax: The Income-tax Act, 2025 applies from 1 April 2026, and tax year 2026-27 runs from 1 April 2026 to 31 March 2027.47

The 2026 Regulations do not specifically address unpaid invoices raised before 1 October 2026, so ask your bank how it treats them.2 The export realisation deadline calculator shows the due date for each invoice.

How did we verify this?

We checked this page against the sources below on 31 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]RBI: A.P. (DIR Series) Circular No. 20 dated 16 January 2026 (supersedes the earlier SOFTEX circulars from 1 October 2026)
  2. [2]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 3, 4, 5, 6, 7, 13 and 19)
  3. [3]RBI: Notification No. FEMA 23(R)/(1)/2026-RB dated 22 September 2026, amending regulation 5 (realisation period)
  4. [4]PayPal India, PayPal Merchant Fees (page last updated 28 March 2024) (checked 2026-10-28)
  5. [5]Wise Help Centre, Receiving payments for Indian businesses (checked 2026-10-28)
  6. [6]CBIC: IGST Act, 2017, section 16 (zero-rated supply)
  7. [7]GST portal: User guide, Furnishing of Letter of Undertaking (FORM GST RFD-11)
  8. [8]Razorpay, Multi-Currency Account for International Bank Transfers (MoneySaver Export Account pricing) (checked 2026-10-28)
  9. [9]Karbon Business, PayPal Alternative comparison page (checked 2026-10-28)
  10. [10]Skydo FAQs, How much does Skydo charge? (checked 2026-10-28)
  11. [11]Payoneer India, Payoneer Fees (checked 2026-10-28)
  12. [12]RBI: Certificates of Authorisation issued under the Payment and Settlement Systems Act, 2007, Payment Aggregators, list as on 16 October 2026 (checked 2026-10-28)
  13. [13]HDFC Bank: Inward Remittance Purpose Codes (bank reproduction of the RBI list, checked 2026-10-28)
  14. [14]DGFT: Purpose Code and SAC Code Mapping, Version 1.0, 10 November 2023
  15. [15]RBI: Master Direction on Regulation of Payment Aggregator dated 15 September 2025, paragraph 11(d) (transaction limit for PA-CB)
  16. [16]DGFT: eBRC system, self-certification of eBRC from bank inward remittance messages (IRMs), Trade Notice 33/2023-24 dated 10 November 2023 (checked 2026-10-28)
  17. [17]CBIC: IGST Act, 2017, section 2 (definition of export of services, clause 6)
  18. [18]CBIC: CGST Rules, 2017, rule 96A (export under bond or Letter of Undertaking), as substituted by Notification No. 12/2024-Central Tax, 10 July 2024
  19. [19]Payoneer Help Center, Digital FIRA FAQ (checked 2026-10-28)
  20. [20]Wise India, Fees for getting paid (Wise Business receive pricing) (checked 2026-10-28)
  21. [21]Razorpay Docs, International Bank Transfer (MoneySaver Export Account) (checked 2026-10-28)
  22. [22]Razorpay, Pricing, International Payments and International Bank Transfers tabs (checked 2026-10-28)
  23. [23]Razorpay Docs, Currency Conversion (checked 2026-10-28)
  24. [24]Razorpay Docs, Flash Links (ACH Debit) (checked 2026-10-28)
  25. [25]Razorpay Docs, FIRS Automated Process (checked 2026-10-28)
  26. [26]Karbon Business, Karbon for Freelancers (checked 2026-10-28)
  27. [27]Karbon Forex Terms and Conditions, Interropac Private Limited (checked 2026-10-28)
  28. [28]Skydo FAQs, What countries can I get paid locally through Skydo? (checked 2026-10-28)
  29. [29]Skydo, home page fee table (checked 2026-10-28)
  30. [30]Skydo, Receive international payments as a freelancer in India (product page) (checked 2026-10-28)
  31. [31]Skydo, Terms of Use, last updated 9 April 2026 (checked 2026-10-28)
  32. [32]Skydo FAQs, What is accepted for GST filings and banks between FIRA and FIRC? (checked 2026-10-28)
  33. [33]Payoneer, How to use Payoneer in India (last modified 18 September 2026, checked 2026-10-28)
  34. [34]Payoneer India, Multi-currency account page and FAQs (checked 2026-10-28)
  35. [35]Payoneer press release, Payoneer receives in-principle authorization as Cross-Border Payment Aggregator in India, 22 January 2026
  36. [36]RBI: Status of Applications received under the Payment and Settlement Systems Act, 2007, as on 16 October 2026 (checked 2026-10-28)
  37. [37]Payoneer India, Payoneer's multi-jurisdictional licenses (checked 2026-10-28)
  38. [38]PayPal India, User Agreement for PayPal Services (last updated 13 January 2025) (checked 2026-10-28)
  39. [39]PayPal India Help, How do I transfer funds to my bank account? (checked 2026-10-28)
  40. [40]PayPal India, Foreign Inward Remittance Advise (FIRA) (checked 2026-10-28)
  41. [41]Wise India site, Wise Business pricing, fees at a glance (checked 2026-10-28)
  42. [42]CBIC: IGST Act, 2017, section 13, sub-sections (2) and (4) (place of supply where supplier or recipient is outside India; immovable property) (checked 2026-10-31)
  43. [43]RBI: A.P. (DIR Series) Circular No. 84 dated 29 February 2012, Compilation of R-Returns: Reporting under FETERS (purpose codes)
  44. [44]CBIC: CGST Rules, 2017, rule 46 (tax invoice, export endorsement)
  45. [45]CBIC: Circular No. 40/14/2018-GST (LUT deemed accepted on generation of ARN)
  46. [46]RBI: Notification No. FEMA 23(R)/(8)/2026-RB, realisation period restored to nine months from 5 June 2026
  47. [47]PIB: Income-tax Act, 2025 comes into force from 1 April 2026
  48. [48]RBI: Notification No. FEMA 23(R)/(7)/2025-RB dated 13 November 2025, amending the 2015 export regulations (realisation period of 15 months)

Frequently asked questions

Do animation studios still file SOFTEX forms in 2026?+

Animation studios do not file SOFTEX forms for exports invoiced from 1 October 2026. RBI Circular No. 20 superseded the SOFTEX circulars from that date, and the FEMA (Export and Import of Goods and Services) Regulations, 2026 require an Export Declaration Form (EDF) from every exporter of services instead.12

Which purpose code should an animation studio give the bank for a foreign client?+

Most animation production and post-production work fits P1101, which RBI describes as audio-visual and related services like motion picture and video tape production, distribution and projection services. Animated advertising may fit P1007, and licensing a finished film may fit P0902. Confirm the code with your bank before the first receipt.1314

Can an animation studio use PayPal for a large production invoice?+

An animation studio can use PayPal for a production invoice, but PayPal charges 4.40% plus a fixed fee on each international commercial transaction and adds a 3.0% or 4.00% conversion fee. RBI caps each payment aggregator cross-border transaction at ₹25 lakh, so very large milestones may need a bank wire.415

Does a Wise e-FIRC count as proof of export for an animation studio?+

Wise emails an e-FIRC for each transfer within three working days, which an animation studio can keep as proof of the foreign receipt. The e-BRC is a separate document the exporter self-certifies on the DGFT portal from the bank's inward remittance messages, so keep both records for GST refunds and audits.516

Is animation for a foreign streaming company zero-rated under GST?+

Animation supplied to a streaming company outside India is zero-rated when all five export conditions in section 2(6) of the IGST Act are met, including payment in convertible foreign exchange. A GST-registered studio can then invoice without IGST under a Letter of Undertaking filed in FORM GST RFD-11.6717

What happens if a foreign animation client pays late?+

If a foreign client pays later than nine months from the invoice date, the studio can ask its AD bank to extend the realisation period under regulation 5. Under rule 96A, IGST with interest becomes payable if payment is not received within one year or the FEMA period, whichever is later.2318

Do Payoneer FIRAs show the animation purpose code?+

Payoneer applies the purpose code you choose in your profile settings to every payment and prints it on each digital FIRA. Payoneer says the code cannot be changed for payments already processed, so an animation studio should set P1101 or its bank's preferred code before the first client pays.1319

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

RBI and FEMA

How did the EDF replace SOFTEX, and what happens to older SOFTEX forms?

How the EDF replaced SOFTEX on 1 October 2026, which RBI instruments did it, and what the rules say about SOFTEX forms and invoices from before that date.

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.

Profession

How should a video editor in India receive payments from foreign clients?

How Indian video editors get paid by foreign clients: export of services rules, RBI purpose code, payment options and fee types, GST LUT and income tax.

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How long does a service exporter have to realise export proceeds?

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