Major Advantages of FIRC – Everyone Should Know
FIRC is required for foreign money transfers to India, but everyone is now aware of what firc is. Fortunately, they aren’t very difficult. It only takes a little knowledge to figure out what a FIRC is if you need one, and how to obtain one.
Foreign Inward Remittance Certificate, or firc, is a piece of recorded evidence or testimonial document for all payments or remittances coming into India from other nations. This paper, or certificate, in this case, can be used as verification by a person of payment received from outside India in a foreign currency. It is crucial to get started on this.
Most statutory entities see or use this (firc) document as a document of evidential significance, as a way to authenticate the validity of the foreign currency transaction received by the recipient.
The following information is frequently included in the document:
- Recipient Name
- Indicates whether the payment will be made in cash or to the recipient’s bank account.
- Name and address of the person (sender)
- Demand Draft (DD) or number or Cheque number of the bank that handled the international transaction first
- Name and address of the bank that initiated and processed the foreign transaction
- The amount which is in foreign currency.
- Name of the fund receiver
- The rate of currency that was used while doing the transaction
The Foreign Inward Remittance Certificate, firc, is then signed by the authorized signatory of the approved designated bank and countersigned by another person when these data have been filled out. The Foreign Inward Remittance Certificate must be sent to the account holder’s address within fifteen days of the date on which the monies to be transferred were deposited to the beneficiary’s account in the approved bank, according to the protocol.
Things Everyone Should Know
The FIRC is regarded as a vital document since it performs a variety of functions:
- If shares are granted to a person or any entity that is based outside of a country, the FIRC serves as proof of payment in place of a share application.
- When an Indian resident sells (or transfers) his shares to a non-resident Indian or a foreign business, the FIRC certifies that the seller who is resident received the purchase consideration.
- The FIRC is a critical document that must be given to the DGFC in the event of Advance License and EPCG.
- In case of service export, no GST is imposed in accordance with the guidelines for service export. In such circumstances, FIRC serves as crucial documentation of service export and remittances received against services.
- FIRC has a number of specific details. The beneficiary’s name, payment mode, and address are all stored in FIRC.
After learning all of this, you have a better understanding of the significance of the FIRC paper. Someone who is scheduled to receive a remittance from outside of India should be honest about the reason for the transaction. This is because the bank will want verification of the reason stated by you for receiving remittance from outside of India when the money is received.
In the end, the Foreign Inward Remittance Certificate is extremely important when it comes to remittances received from banks located outside of India. As a result, receivers should make it a point to follow up with their banks and get their Foreign Inward Remittance Certificate as soon as feasible.
Furthermore, special attention and care must be devoted to the goal of foreign direct investment, as any omission of this has major implications and ramifications in terms of remittance, usage, and accounting.