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Wise, PayPal or Payoneer: What FIRC, GST and Income Tax Mean for Consultants Getting Paid from Abroad

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Short answer

Business and management consulting receipts are reported under purpose code P1006.1 Advice to a client outside India can be a zero-rated export, invoiced without IGST under an LUT.234 Wise emails an e-FIRC for each transfer.5 PayPal issues a free weekly digital FIRA from February 2026.6 Consultants are taxed under the Income-tax Act, 2025 from 1 April 2026.7

Applies toRules involvedPlatforms comparedLast verified
Independent consultants and consulting firms in India with foreign clientsIGST Act sections 2(6) and 16, LUT234; FEMA 2026 Regulations: EDF and nine-month realisation89; Income-tax Act, 2025 sections 58(2), 62(4) and 20210Razorpay, Karbon Business, Skydo, Payoneer, PayPal, Wise5111213141528 October 2026 (rules and published fees)816

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.

Consultants in India advise clients abroad on strategy, operations, finance, HR, technology and engineering, usually billed by the day or on retainer. Three questions follow each engagement: what proof of receipt (FIRC or FIRA) the payment produces, whether GST applies, and how the income is taxed in India.3718 Wise, PayPal and Payoneer, the providers named in the question, each issue a receipt record but differ in fees and in who can sign up.5617

The persona guide international payments for consultants goes further into engagement types. Confirm your position with a chartered accountant (CA).

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

Wise suits consultants whose clients pay by bank transfer to local account details, PayPal suits clients paying by card or PayPal balance, and Payoneer suits consultants paid through marketplaces or receiving accounts.52829 The table adds the three providers with the lowest estimated cost on a USD 2,000 receipt from published fees, ordered by that estimate, cheapest first, with Wise (no published INR conversion percentage) after.11121330

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 GST1131Razorpay says 0% FX markup on MoneySaver bank transfers; card conversion markup not published1132T+1 for push bank transfers (ACH, FPS, SEPA, SWIFT); around T+5 business days for ACH debit Flash Links2133Foreign Inward Remittance Statement (FIRS) emailed within 24 hours after settlement for bank transfers2134Razorpay Payments Private Limited is listed as PA-CB for inward and outward transactions16Razorpay pricing and docs; RBI list11162131323334
Karbon BusinessUS bank transfers and marketplace payouts351% transaction fee, listed on Karbon's PayPal alternative page120% (freelancer page); 0.5% to 1.0% (PayPal alternative page)3512Karbon says 24 to 48 hours35FIRA for every transaction from an unnamed banking partner; cost not published35Not on the RBI list itself; its terms run export receipts under a partner the RBI lists as a PA-CB1636Karbon pages and terms; RBI list12163536
SkydoLocal bank transfers from major markets37USD 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 10,00013380% markup on the mid-market rate (product page); retail rate set by Skydo or its partner banks (terms)3940Skydo's terms say T+1 to T+3 business days, depending on currency and corridor40Free FIRA on every payment received, Skydo says3941Skydo Technologies Private Limited is listed as PA-CB-I and O, authorised 8 January 202616Skydo FAQs and terms; RBI list131638394041
PayoneerMarketplace payouts such as Amazon or Upwork29Payment request by card 2.90% + $0.49; ACH bank debit (US only) 1%; receiving-account fees are shown in your account141% to 4% of the amount when converted to INR on withdrawal, depending on region and volume14Within 24 hours (multi-currency account page); within 48 hours (pricing page)1420Free digital FIRA for each transaction from Payoneer's partner AD bank, within 24 to 72 hours17In-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 registration424344Payoneer pricing, help and press pages; RBI status list141720424344
PayPalClients paying by card or PayPal balance284.40% plus a fixed fee (0.30 USD for USD) per international commercial transaction153.0% or 4.00% above the base exchange rate, depending on the conversion type15Up to 5 business days to reach the Indian bank account45Free weekly digital FIRA from February 2026; custom FIRA at 100 INR plus 18% GST per transaction6Listed as an existing PA-CB with in-principle authorisation granted, as on 16 October 202643PayPal fee, help and FIRA pages; RBI status list6154345
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 fees54630Mid-market rate plus a conversion fee; no percentage published for INR30Wise 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 202616Wise help and pricing pages; RBI list5163046

Consultants billing large retainers should note that RBI caps each payment aggregator cross-border transaction at ₹25 lakh.47

Which RBI, GST and income tax rules apply to consultants?

The rules that apply to a consultant paid from abroad are the IGST Act export test and place of supply rules, the LUT procedure, the 2026 FEMA export regulations and the Income-tax Act, 2025.2481022

RuleBest for (who it applies to)Plain meaningSource
IGST Act sections 2(6) and 13(2)Consultants advising remotely from IndiaExport if all five conditions hold; place of supply is the client's location unless a special rule applies222CBIC222
IGST Act section 16 and LUTGST-registered consultantsZero-rated exports invoiced without IGST under an LUT for the financial year34CBIC, GST portal34
CGST rule 96A(1)(b)Consultants with slow-paying clientsIGST with interest due if payment is not received within one year or the FEMA period, whichever is later48CBIC48
EDF and realisation, 2026 RegulationsEvery consultant exporting from 1 October 2026File the EDF and collect payment within nine months of the invoice89RBI89
Income-tax Act, 2025, sections 58(2) and 62(4)Resident individual technical consultants and partnership firms (not LLPs)50% deemed profit up to ₹50 lakh receipts, or ₹75 lakh if cash receipts are within 5%1019Income Tax Department1019
Income-tax Act, 2025, section 202(1)Individuals on the new regimeSlabs from nil up to ₹4 lakh to 30% above ₹24 lakh for tax year 2026-2710Income Tax Department10

Tax year 2026-27 runs from 1 April 2026 to 31 March 2027.7 See income tax on foreign income for freelancers.

Which purpose code applies to consultants?

Business and management consulting is reported under P1006, and specialist consulting has its own codes.149 The receipt code list comes from RBI A.P. (DIR Series) Circular No. 84 of 29 February 2012.50

CodeBest for (transaction type)Official RBI descriptionSource
P1006Strategy, operations, HR and management consultingBusiness and management consultancy and public relations servicesHDFC, DGFT149
P1014Engineering and plant consultingEngineering ServicesHDFC, DGFT149
P1015Cross-border tax adviceTax consulting servicesHDFC, DGFT149
P1016Market studies and surveysMarket research and public opinion polling serviceHDFC, DGFT149
P0802ERP, CRM and IT consultingSoftware consultancy/implementation (other than those covered in SOFTEX form)HDFC, DGFT149
P1022Scientific or technical advisoryOther Technical Services including scientific/space services.HDFC, DGFT149

DGFT maps management consulting (SAC 998311) and business consulting including public relations (SAC 998312) to P1006.49 See purpose code for consulting services.

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

The cheapest option for a consultant depends on invoice size, because flat per-payment fees fall as a share of larger invoices and PayPal's percentage fees do not.111315 The table below works out INR received at today's rate from 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, a $5,000 monthly retainer paid by bank transfer costs about 0.68% with Skydo's USD 29 plus GST and 1.00 to 1.18% with Razorpay's 1% MoneySaver fee plus GST.1113 Payoneer's conversion to INR costs 1% to 4% depending on region and volume.14 PayPal's 4.40% fee plus a 3.0% or 4.00% conversion fee comes to about 7.27 to 8.23% at that size.15

What documents follow each payment?

Each foreign payment to a consultant leaves a FIRC, e-FIRC or FIRA, and the consultant adds an EDF, a self-certified e-BRC, an LUT-endorsed invoice if registered and tax forms for some clients.481825

DocumentBest forWhat it doesSource
FIRC, e-FIRC or FIRAGST returns and bank recordsWise issues an e-FIRC per transfer, Payoneer a digital FIRA per transaction, PayPal a free weekly digital FIRA5617Provider pages5617
e-BRCGST refunds and export recordsSelf-certified on DGFT from the bank's inward remittance messages18DGFT18
EDFEvery consultant exporting from 1 October 2026Filed within 30 days from the end of the invoice month, or on or before the payment date for non-software services8RBI8
LUTGST-registered consultantsZero-rated invoicing without IGST451GST portal, CBIC451
Form W-8BENConsultants with US clientsGiven by a non-US individual to the US payer25IRS25
Form 44Consultants with tax withheld abroadForeign tax credit claim from tax year 2026-2724Income Tax Department24

See FIRC vs FIRA vs e-BRC for how the three records differ.

What changes in 2026 for consultants?

The 2026 changes for consultants are the new Income-tax Act with new section numbers and forms, the EDF for every service exporter, the nine-month realisation period and the GST intermediary change.78952

  • Income-tax Act, 2025: In force from 1 April 2026, with "tax year" replacing previous year and assessment year.7
  • Presumptive scheme: Section 44ADA is now section 58(2), Table row 3.19
  • Due date: The return due date for non-audit business and profession cases moved to 31 August.53
  • EDF: From 1 October 2026 every exporter of services files an EDF with its AD bank.8
  • Realisation period: Nine months from the invoice date, after the 15-month window ended on 5 June 2026.954
  • Intermediary rule: Section 13(8)(b) of the IGST Act was omitted with effect from 30 March 2026, relevant to consultants paid for arranging deals.52

The DTAA withholding finder helps when a foreign client wants to withhold tax.

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]HDFC Bank: Inward Remittance Purpose Codes (bank reproduction of the RBI list, checked 2026-10-28)
  2. [2]CBIC: IGST Act, 2017, section 2 (definition of export of services, clause 6)
  3. [3]CBIC: IGST Act, 2017, section 16 (zero-rated supply)
  4. [4]GST portal: User guide, Furnishing of Letter of Undertaking (FORM GST RFD-11)
  5. [5]Wise Help Centre, Receiving payments for Indian businesses (checked 2026-10-28)
  6. [6]PayPal India, Foreign Inward Remittance Advise (FIRA) (checked 2026-10-28)
  7. [7]PIB: Income-tax Act, 2025 comes into force from 1 April 2026
  8. [8]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)
  9. [9]RBI: Notification No. FEMA 23(R)/(1)/2026-RB dated 22 September 2026, amending regulation 5 (realisation period)
  10. [10]Income Tax Department: Income-tax Act, 2025 as amended by the Finance Act, 2026 (sections 58, 62(4), 156 and 202)
  11. [11]Razorpay, Multi-Currency Account for International Bank Transfers (MoneySaver Export Account pricing) (checked 2026-10-28)
  12. [12]Karbon Business, PayPal Alternative comparison page (checked 2026-10-28)
  13. [13]Skydo FAQs, How much does Skydo charge? (checked 2026-10-28)
  14. [14]Payoneer India, Payoneer Fees (checked 2026-10-28)
  15. [15]PayPal India, PayPal Merchant Fees (page last updated 28 March 2024) (checked 2026-10-28)
  16. [16]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)
  17. [17]Payoneer Help Center, Digital FIRA FAQ (checked 2026-10-28)
  18. [18]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)
  19. [19]Income Tax Department: Income-tax Act, 2025, section 58 (presumptive taxation)
  20. [20]Payoneer India, Multi-currency account page and FAQs (checked 2026-10-28)
  21. [21]Razorpay Docs, International Bank Transfer (MoneySaver Export Account) (checked 2026-10-28)
  22. [22]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)
  23. [23]Income Tax Department: Finance Act, 2026 (section 3, Health and Education Cess)
  24. [24]Income Tax Department: Income-tax Rules, 2026 (rule 76 and Form 44, foreign tax credit)
  25. [25]IRS: Instructions for Form W-8BEN
  26. [26]IRS: Instructions for Form W-8BEN-E
  27. [27]IRS: Nonresident aliens, sourcing of income
  28. [28]PayPal India, User Agreement for PayPal Services (last updated 13 January 2025) (checked 2026-10-28)
  29. [29]Payoneer, How to use Payoneer in India (last modified 18 September 2026, checked 2026-10-28)
  30. [30]Wise India, Fees for getting paid (Wise Business receive pricing) (checked 2026-10-28)
  31. [31]Razorpay, Pricing, International Payments and International Bank Transfers tabs (checked 2026-10-28)
  32. [32]Razorpay Docs, Currency Conversion (checked 2026-10-28)
  33. [33]Razorpay Docs, Flash Links (ACH Debit) (checked 2026-10-28)
  34. [34]Razorpay Docs, FIRS Automated Process (checked 2026-10-28)
  35. [35]Karbon Business, Karbon for Freelancers (checked 2026-10-28)
  36. [36]Karbon Forex Terms and Conditions, Interropac Private Limited (checked 2026-10-28)
  37. [37]Skydo FAQs, What countries can I get paid locally through Skydo? (checked 2026-10-28)
  38. [38]Skydo, home page fee table (checked 2026-10-28)
  39. [39]Skydo, Receive international payments as a freelancer in India (product page) (checked 2026-10-28)
  40. [40]Skydo, Terms of Use, last updated 9 April 2026 (checked 2026-10-28)
  41. [41]Skydo FAQs, What is accepted for GST filings and banks between FIRA and FIRC? (checked 2026-10-28)
  42. [42]Payoneer press release, Payoneer receives in-principle authorization as Cross-Border Payment Aggregator in India, 22 January 2026
  43. [43]RBI: Status of Applications received under the Payment and Settlement Systems Act, 2007, as on 16 October 2026 (checked 2026-10-28)
  44. [44]Payoneer India, Payoneer's multi-jurisdictional licenses (checked 2026-10-28)
  45. [45]PayPal India Help, How do I transfer funds to my bank account? (checked 2026-10-28)
  46. [46]Wise India site, Wise Business pricing, fees at a glance (checked 2026-10-28)
  47. [47]RBI: Master Direction on Regulation of Payment Aggregator dated 15 September 2025, paragraph 11(d) (transaction limit for PA-CB)
  48. [48]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
  49. [49]DGFT: Purpose Code and SAC Code Mapping, Version 1.0, 10 November 2023
  50. [50]RBI: A.P. (DIR Series) Circular No. 84 dated 29 February 2012, Compilation of R-Returns: Reporting under FETERS (purpose codes)
  51. [51]CBIC: Circular No. 40/14/2018-GST (LUT deemed accepted on generation of ARN)
  52. [52]Finance Act, 2026, section 157 (omission of section 13(8)(b) of the IGST Act from 30 March 2026), Gazette of India
  53. [53]CBDT: FAQs on Budget 2026 (return due date for non-audit business and profession cases)
  54. [54]RBI: Notification No. FEMA 23(R)/(8)/2026-RB, realisation period restored to nine months from 5 June 2026

Frequently asked questions

Do consultants need a FIRC for foreign inward remittance?+

A consultant should keep a receipt record for each foreign payment to support GST returns and bank records. Wise issues an e-FIRC per transfer, Payoneer a digital FIRA per transaction from its partner AD bank, and PayPal a free weekly digital FIRA. The e-BRC is self-certified separately on the DGFT portal.561718

Can a management consultant use the 50% presumptive scheme?+

Section 62(4) of the Income-tax Act, 2025 lists technical consultancy among the specified professions, and management or business consultancy is not named. A technical consultant may qualify for the 50% scheme in section 58(2), while a management consultant should confirm the position with a chartered accountant first.1019

Can a consultant keep foreign currency in an EEFC account?+

Payoneer's India multi-currency page says payments can be withdrawn to a linked Indian bank account or an EEFC account, and Razorpay says it supports non-INR settlement to an EEFC account. Wise converts every payment to INR, so Wise users cannot hold the foreign currency.52021

Is a workshop delivered in India for a foreign client an export?+

A workshop delivered in India may not be an export, because section 13 of the IGST Act has special place of supply rules for some services, and the default client-location rule in section 13(2) applies only where no special rule does. Check the place of supply with a CA before invoicing without IGST.222

What income tax rates apply to a consultant in tax year 2026-27?+

Under the new regime in section 202(1) of the Income-tax Act, 2025, income up to ₹4 lakh is nil and rates rise in steps to 30% above ₹24 lakh. A rebate of up to ₹60,000 applies for income up to ₹12 lakh, and 4% Health and Education Cess is added.1023

How does a consultant claim credit for tax withheld abroad?+

For income up to 31 March 2026, foreign tax credit is claimed in Form 67 under the 1961 Rules. From tax year 2026-27, the claim uses Form 44 under rule 76 of the Income-tax Rules, 2026. Keep the client's withholding certificate and your FIRA for each payment.24

Do US clients need a W-8BEN from an Indian consultant?+

A non-US individual consultant gives Form W-8BEN to the US payer, and an entity uses W-8BEN-E.2526 The IRS treats services performed outside the US as generally foreign-source income for a non-resident alien, which is generally not subject to US withholding.27

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

Profession

How should a consultant in India receive payments from foreign clients?

How Indian consultants bill foreign clients in 2026: export tests, on-site and event traps, intermediary rules, P1006, the EDF and presumptive tax.

Purpose codes

Which purpose code should a consultant use for payments from foreign clients?

Which RBI purpose code fits consulting fees from foreign clients: P1006 for management and PR, and the IT, legal, tax, engineering and research alternatives.

Tax

How is foreign income taxed for a freelancer living in India?

How India taxes a resident freelancer's fees from foreign clients under the Income-tax Act, 2025: residence, worldwide income, foreign tax credit, filing duties.

RBI and FEMA

What is the difference between FIRC, FIRA and e-BRC for service exporters?

What FIRC, FIRA and e-BRC are, who issues each, how e-BRC works on the DGFT portal, and which documents Indian service exporters should keep for GST and tax.

Payments

What are the benefits of an EEFC account for Indian service exporters?

What an Exchange Earner's Foreign Currency (EEFC) account lets an Indian exporter do, what RBI does not allow, and when it saves money on foreign receipts.