Part 4 of the EDF is a single declaration paragraph with several either/or choices built into it, and "strike out whichever is not applicable" simply means you cross out the option that does not fit your case so only the true statement remains. For most service exporters the kept words are: I/We as applicable, buyer, services, foreign exchange, and either "will be received" or "has been received" depending on whether the money has already landed. Get those pairs right, add the date by which you expect full payment, sign, and Part 4 is done.
Key takeaways
- Part 4 is your personal declaration as the exporter; the bank relies on it, so every struck-out word matters.
- There are six alternative pairs: I/We, buyer/third party, will be received/has been received, foreign exchange/Indian Rupees, goods/services, plus the realisation date you write in.
- Strike through neatly with a single line, or delete the unused option if you prepare the form digitally. Do not leave both options standing.
- Your choices must agree with Part 1 and Part 2B. A mismatch is one of the easiest ways to get the form returned.
Why the declaration has alternatives at all
The Annex to the Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026 prescribes one form for goods, services and software. Rather than print three versions, it uses one declaration and asks you to remove what does not apply. A bank officer reading Part 4 should be able to tell who is declaring, who will pay, in which currency, and whether the money is already in.
The six choices, one by one
| Alternative pair | Keep this when | Typical service exporter |
|---|---|---|
| I / We | "I" for a proprietor signing personally; "We" for a company, LLP or firm | We (most businesses) |
| buyer / third party | "buyer" if the client pays you directly; "third party" if someone else pays on the client's behalf | buyer |
| will be received / has been received | "will be" if payment is pending on the filing date; "has been" if already credited | depends on timing |
| foreign exchange / Indian Rupees | match the currency of settlement | foreign exchange |
| goods / services | "services" for anything other than physical goods | services |
| date by which full value will be received | write a date inside the realisation period | within 9 months of invoice |
I or We
This is about the declarant, not the number of people. A private limited company is "We" even if a single director signs. A sole proprietor signing in their own name can keep "I", though many proprietors use "We" when signing as "Proprietor, Asha Design Studio". Either is defensible for a proprietor; just be consistent with how Part 1 names the exporter.
Buyer or third party
Keep "buyer" when the money comes from the same entity named as the service recipient in Part 2B. If a parent company, a payment agent or an affiliate pays instead, keep "third party" and make sure fields 1.15 and 1.16 (third party and relationship) are filled. Our article on third-party payments in the EDF covers that situation in more depth.
Will be received or has been received
This pair trips people up most, because one monthly EDF can cover invoices in both states. Suppose Nimbus Labs Pvt Ltd files its October 2026 EDF on 20 November with eight invoices, five of which are already paid.
There is no perfect answer printed on the form for a mixed month. A common, sensible approach is to keep "will be received" (since full value for the month is not yet in) and use the Remarks column in Part 2B to note which invoices are already realised. Some banks may prefer a different treatment, so ask your branch how it wants mixed months shown. If every invoice is paid by the filing date, keep "has been received".
Foreign exchange or Indian Rupees
Most exporters invoice in USD, GBP, EUR or another convertible currency, so "foreign exchange" stays. If you invoiced and are being settled in rupees under RBI's rupee arrangements, keep "Indian Rupees". That choice also changes your realisation clock: 12 months rather than 9 for rupee-invoiced exports.
Goods or services
For a services EDF, keep "services". Software exporters also keep "services" in this pair, since there is no separate "software" word here, while field 1.1 in Part 1 carries the Goods / Services / Software distinction.
The realisation date
You are not asked for an exact payment date; you are declaring the date by which full value will be received. It must fall inside the permitted period: nine months from the invoice date for services, or 12 months where invoiced in rupees. For a month with many invoices, the safest date is one that works for the earliest invoice, since its nine months run out first.
A worked example
Asha Design Studio LLP raised three invoices in November 2026 to a client in Germany: EUR 2,400 on 4 November, EUR 1,800 on 15 November and EUR 3,100 on 27 November. The client pays directly by wire. On 18 December, when Asha prepares the EDF, only the first invoice is paid.
Asha's Part 4 would read, after strike-outs: "We declare that the services... full export value... will be received... from the buyer... in foreign exchange... by 4 August 2027." That date is nine months from the earliest invoice. The Remarks column against invoice one notes "Realised 2 Dec 2026, FIRA attached".
The total of the three rows in Part 2B converted at the rate Asha has used must equal field 1.22, and the strike-outs must agree with field 1.12 (mode of realisation: Others) and the absence of a third party in 1.15.
How to strike out cleanly
On paper, draw one straight line through the unwanted word and initial it if your bank asks. Avoid correction fluid or overwriting; they invite questions about whether the form was altered after signing. On a computer, delete the unused option or show it in strikethrough. Our free EDF form generator does this for you: pick each option and it prints only the applicable words.
Mistakes that make banks send Part 4 back
- Both alternatives left in place, usually "will be received/has been received".
- "Third party" kept, but fields 1.15 and 1.16 blank, or the reverse.
- "Indian Rupees" kept while Part 2B shows USD amounts.
- No realisation date, or one beyond nine months from the first invoice.
- Signed by someone who is not an authorised signatory.
If you are not sure who may sign, our EDF guide explains the signing basics, and the authorised signatory glossary entry covers the term. This article is general information, not legal or tax advice; your AD bank's own published EDF policy is the final word on presentation.
Frequently asked questions
What does "strike out whichever is not applicable" mean on the EDF?
It means the declaration offers two options in several places and you must cross out the one that does not describe your export. After you finish, the paragraph should read as a single true statement about who is declaring, who pays, in what currency and whether payment has arrived.
Should a service exporter keep "goods" or "services" in Part 4?
Keep "services" and strike out "goods". This applies to software exporters too, because the goods/services pair in the declaration has no separate software option, and the software distinction is recorded in field 1.1 of Part 1.
What if some invoices in the month are paid and others are not?
Many exporters keep "will be received" for a mixed month and note realised invoices in the Part 2B Remarks column. Because the form does not spell out a rule for mixed months, ask your AD bank which presentation it prefers before you file.
Which date should I write as the date full value will be received?
Write a date within the realisation period, which is nine months from the invoice date for services, or 12 months for rupee invoices. When the EDF covers several invoices, use a date that fits the earliest invoice so that no invoice falls outside the declared window.
Can I type the strike-outs instead of crossing them by hand?
Yes, a digitally prepared form can delete the unused option or show it in strikethrough, and most banks accept that. What matters is that the signed copy clearly shows only the applicable words and that the signature is genuine.
Bottom line
Part 4 is short, but it is the one place where you personally vouch for the export, so each struck-out word should match the rest of the form. Use the EDF form generator to pick the right options and print a clean, signed declaration in minutes.
This guide is general information for Indian businesses, not legal or tax advice. Rules and bank processes change — confirm specifics with your AD bank or chartered accountant.