How Indian freelancers and agencies get paid by US clients

A US client has agreed to pay your invoice. The next question is how the money gets to your bank account in India, and how much of it arrives. The answer depends on the route, and the difference between the cheapest and the most expensive on a $10,000 invoice is more than $500.

This guide compares the common routes for Indian freelancers and small agencies, then covers the paperwork that comes with exporting services from India: GST, the letter of undertaking, purpose codes and the e-FIRC.

The four routes

A bank wire straight to your Indian account. Your client sends a SWIFT wire to your bank. It needs no new account, but the client's bank charges to send it, intermediary banks may take a cut on the way, and your bank sets its own exchange rate.

US account details from Wise. Wise gives Indian businesses local account details in currencies including USD. Your client pays them as they would any US account, and Wise converts the money to INR and sends it to your Indian bank account, usually within 1 to 2 days, then emails you an e-FIRC.^⁠[1] Wise launched this for Indian businesses in April 2025.^⁠[9]

Payoneer. Payoneer gives you receiving accounts in major currencies and also lets clients pay a payment request by card or ACH bank debit.^⁠[3] It's widely used by marketplaces, so if you also get paid by platforms, one account can collect both.

PayPal. Easy for a client who already has PayPal, but the most expensive way to receive a business payment of any size.^⁠[4]

Wise Business and Payoneer are the two most freelancers end up choosing between. Our comparison of Wise, Airwallex and Payoneer covers them in more depth.

What $10,000 costs to receive

Take one $10,000 invoice that a US client pays by bank transfer, with the money converted to INR and sent to your Indian bank account.

Wise. Wise's calculator for Indian businesses shows $157.45 in conversion fees, $1 for the e-FIRC and $28.52 of GST, which is 18% of those two fees, for $186.97 in total.^⁠[2] It converts at the mid-market rate and shows the fee separately.^⁠[9] Wise's help center says each transfer can be up to ₹25 lakh or the equivalent, and that the account details can't be used to hold money or pay anyone. Everything received is converted and sent to your Indian bank automatically.^⁠[1]

Payoneer. Payoneer's public pricing charges 1% to receive into an account in a currency that isn't your local one, and 1% when a client pays by US ACH debit. Withdrawing with a currency conversion costs 1.2% to 4%.^⁠[3] On $10,000, that's $100 to receive, then $118.80 to $396 to convert the remaining $9,900. Payoneer says the fees that apply to you depend on your location and account type, and shows them during registration and in your account,^⁠[3] so check the figure for India before you commit. Accounts receiving less than $6,000 in 12 months also pay a $29.95 annual fee.^⁠[3]

PayPal. PayPal charges Indian accounts 4.40% plus a fixed fee, which is 30¢ for US dollars, to receive an international commercial payment. Converting what you receive into another currency costs 3.0% above its base exchange rate.^⁠[4] On $10,000, that's $440.30, then about $287 to convert what's left.

Speed. Ask US clients to pay your account details by a domestic US transfer such as ACH, not an international wire, where they can. Wise says local bank transfers usually reach your account details in 0 to 3 working days and international SWIFT transfers in 2 to 6, and that more than half its transfers to India settle within 2 hours of the money arriving.^⁠[1] A domestic transfer is usually cheaper for the client to send, too.

A bank wire. The cost depends on the client's bank, any intermediary bank, and the margin your Indian bank adds to the exchange rate. Ask your bank for its rate on a USD inward remittance and compare it with the mid-market rate on the same day.

GST: exporting services from India

Most work for foreign clients, such as software development, design or consulting, counts as an export of services under GST when the client is outside India and pays in foreign currency. Exports are zero-rated supplies, which means no GST is charged on them if you follow the procedure.^⁠[5] Whether a particular service qualifies depends on its place of supply, which is a question for your CA if you're unsure.

Registration. People supplying taxable services across state lines, which includes exports, don't have to register for GST if their all-India turnover is ₹20 lakh or less in a financial year, or ₹10 lakh in special category states.^⁠[6] Many freelancers register anyway, because clients ask for a GSTIN and because registration lets you claim back GST paid on business costs.

The letter of undertaking. A registered exporter can supply services without paying integrated GST by furnishing a bond or a letter of undertaking (LUT) before making the supply.^⁠[5] The LUT is filed online on the GST portal as Form GST RFD-11. You choose the financial year it's for and name two independent witnesses, so plan to file a new one at the start of each year.^⁠[10] Any exporter can use it except one prosecuted for a tax evasion case above ₹250 lakh.^⁠[5]

Without an LUT, you'd charge and pay IGST on the export, then claim it back as a refund. If you've already exported without one, the CBIC told its officers that late filing can be condoned and the LUT allowed after the fact.^⁠[5]

The payment deadline. Under an LUT, if payment for an exported service doesn't arrive in convertible foreign exchange within one year of the invoice, or a longer period the Commissioner allows, you become liable to pay the tax with interest.^⁠[5] Realizing the payment in foreign currency is a condition of an export of services.^⁠[5]

Invoices, purpose codes and the e-FIRC

The invoice. Invoice in US dollars, name the client and its address outside India, and describe the service. If you're registered and exporting under an LUT, the invoice also carries your GSTIN and a note that the supply is an export under LUT. Ask your CA for the exact wording they want to see.

The purpose code. Every inward remittance to India is tagged with a purpose code from a list the Reserve Bank of India maintains, describing what the payment is for.^⁠[7] Your bank or provider will ask you to choose one. Pick the code that matches the service on your invoice, and use the same one consistently for the same kind of work.

The e-FIRC. A foreign inward remittance certificate is proof that foreign currency came into India for a payment. GST refund claims for exported services need a bank realization certificate or FIRC for the invoices claimed.^⁠[5] Wise emails an e-FIRC within 3 working days of each transfer it converts to INR,^⁠[1] and charges $1 for it.^⁠[2] Save each one next to its invoice. Your CA will want them at year end.

What your US client may ask for

A US business paying a foreign contractor usually asks for Form W-8BEN, which shows you aren't a US person. If you claim the benefit of the US-India tax treaty, you can give the tax number India issued you on line 6, which for most Indian freelancers is the PAN.^⁠[8] You don't need a US tax number for this. Our guide to ITINs for non-US founders explains when you would.

The income is still taxable in India. Set money aside for advance tax and keep each invoice, e-FIRC and bank statement together, since they're what your CA works from.

When it's time for a US company

Receiving payments in India works well for most freelancers and agencies for a long time. A US company starts to make sense when one of these becomes true.

• Clients want a US vendor. Some enterprise clients' procurement teams prefer, or require, a US entity with a US bank account and a W-9.
• You want to take cards. Stripe in India is invite-only.^⁠[7] A US company can open a US Stripe account. Our guide to Stripe for non-US founders covers the options.
• You're raising money. US investors usually invest in a US corporation.

A US company owned by an Indian resident brings its own reporting under India's overseas investment rules, and US filings every year. Read our guide to starting a US company from abroad, and ask a CA about the Indian side, before you form one.

How to choose

If clients pay by bank transfer, start with Wise and compare its quote for your usual invoice with Payoneer's fees in your account. Use PayPal only for clients who won't pay any other way, and price its cost into the invoice. Whatever you choose, register for GST when you need to, file the LUT at the start of each financial year, and keep an e-FIRC for every payment.