Getting paid by international clients from India: options and paperwork

Getting paid smoothly is as important as winning the work. This is a general overview; rules and fees change, so always check current terms with the provider and speak to a Chartered Accountant (CA).

Common ways to receive money

• Direct bank transfer (SWIFT) to your Indian bank account. Simple for large invoices; your bank and intermediary banks may charge fees, and the exchange rate matters.
• Cross-border payment providers such as Wise, Payoneer or PayPal. Many let clients pay in their local currency. Compare the total cost: transfer fee plus exchange-rate margin.
• Client's own payment platform, if a larger client pays contractors through their payroll or vendor system.

Freelancers India doesn't process payments yet, so agree the method in your proposal or contract.

Invoices

Send a proper invoice for every milestone, including your name or business name, address, the client's details, a description of services, amount and currency, invoice number and date, and payment instructions.

Paperwork to keep

• Invoices and contracts or written agreements
• Proof of the inward remittance from your bank or provider (banks can issue a foreign inward remittance certificate or advice)
• Records of fees and exchange rates

Tax basics to discuss with your CA

• Income from freelancing is taxable in India; ask about presumptive taxation schemes for professionals and whether you need to pay advance tax.
• If you are registered for GST, exports of services can generally be zero-rated, for example under a Letter of Undertaking (LUT). Whether you need GST registration depends on your turnover and situation.

Protect yourself

• Agree payment terms before work starts.
• Use milestones so you're never far ahead of what you've been paid for.
• Never pay a "registration fee" to receive a job or a payment — report such requests.

This article is general information, not tax, legal or financial advice.