Every row in Part 2B of the EDF asks for two money figures: the invoice amount and the net realisable value. The invoice amount is what you billed; the NRV is what you genuinely expect to receive against that invoice after any deductions agreed with the client, stated in the invoice currency. Most months the two figures are identical, and when they are not, the gap needs a reason you can explain to your bank.
Key takeaways
- NRV sits next to the invoice amount in each Part 2B row, in the same currency as the invoice.
- If you expect to receive the full invoice amount, NRV equals the invoice amount. That is the normal case.
- Agreed reductions known when you file (a discount, an agent's commission, a credit note) lower the NRV.
- Unpredictable deductions such as intermediary bank charges are usually not built into NRV in advance. Ask your AD bank how it wants them handled.
- Your bank matches incoming money against what you declared, so an honest NRV makes EDPMS closure smoother.
What NRV actually measures
Think of the invoice amount as the price tag and NRV as the expected receipt. The EDF is a declaration about money that will come into India, so the form wants to know how much foreign exchange (or rupees, for rupee invoices) you anticipate realising for each invoice.
That expectation is what your AD bank later reconciles in EDPMS. If you declare USD 10,000 and USD 9,200 arrives with no explanation, the entry stays open with a shortfall. If you declared NRV of USD 9,200 because of an agreed USD 800 commission to the client's referral partner, the numbers reconcile on day one.
NRV is not a GST figure, and it does not change the taxable value on your tax invoice. It is a FEMA figure on a FEMA form.
Deductions that usually reduce NRV
The test is simple: was the reduction agreed, and was it known when you filed the EDF?
| Situation | Known at filing? | Typical NRV treatment |
|---|---|---|
| Early-payment discount the client has already confirmed it will take | Yes | Deduct from NRV, note in remarks |
| Commission payable to an overseas agent out of the invoice value | Yes | Deduct, keep the agency agreement on file |
| Credit note issued before the EDF was submitted | Yes | Deduct, or show the net invoice value if the credit note reduces the invoice itself |
| Intermediary or correspondent bank charges | Rarely | Usually leave out; explain the shortfall when realised |
| Exchange rate movement | No | Never adjust NRV for this; NRV is in invoice currency |
| Client dispute raised after filing | No | Do not change the EDF; deal with it at realisation stage |
The last two rows matter most. NRV is stated in the invoice currency, so a weaker or stronger rupee does not change it. And a dispute that surfaces after filing is a realisation problem, handled with your bank, not a reason to rewrite a submitted form.
Worked example: three invoices, three different NRVs
Halcyon Data Services LLP raised three invoices in November 2026.
Invoice HDS/112 — Brightwater Insurance, USA, USD 14,000. No special terms. NRV: USD 14,000.
Invoice HDS/113 — Kellerman GmbH, Germany, EUR 6,000. The contract allows a 2% discount for payment within 10 days, and Kellerman's accounts team has written to confirm it will pay early and take the discount. NRV: EUR 5,880. Remarks: "2% early-payment discount per contract clause 7.3."
Invoice HDS/114 — Northgate Analytics Pty Ltd, Australia, AUD 9,500. The deal came through a Sydney-based consultant who is paid 10% commission directly by Northgate out of the invoice amount, under a written agreement. NRV: AUD 8,550. Remarks: "10% agency commission retained per agreement dated 2 Aug 2026."
The Part 2B rows look like this:
| Sr. | Recipient | Country | Invoice no. | Currency | Amount | NRV |
|---|---|---|---|---|---|---|
| 1 | Brightwater Insurance | USA | HDS/112 | USD | 14,000 | 14,000 |
| 2 | Kellerman GmbH | Germany | HDS/113 | EUR | 6,000 | 5,880 |
| 3 | Northgate Analytics Pty Ltd | Australia | HDS/114 | AUD | 9,500 | 8,550 |
Halcyon's EDF for November is due by 30 December 2026. For field 1.22 (total value in INR), the firm converts the invoice values at the rate it uses consistently in its books and writes the total in figures and words. Our guide on the exchange rate for the rupee total covers that choice.
The bank charges question
This is where most confusion sits. A USD 5,000 SWIFT transfer often arrives as USD 4,965 or USD 4,980 because an intermediary bank took a fee. Should you declare NRV of USD 4,965?
In most cases, no. You do not know the charge when you file, it varies from transfer to transfer, and it is not a reduction you agreed with the client. Declaring USD 5,000 and explaining the small shortfall at realisation is the cleaner approach. Many banks treat small, documented bank-charge deductions as part of normal matching, but each bank publishes its own process, so ask your branch or relationship manager how they want it shown.
The exception is a contract where you have explicitly agreed to bear a fixed, known charge that the client deducts before paying. Then it behaves like any other agreed deduction. Our article on bank charges deducted abroad walks through the realisation side.
Credit notes: before or after filing
Timing decides the treatment.
Credit note issued before you file. If Asha Design Studio invoices a London client GBP 3,000 on 4 November, then issues a GBP 400 credit note on 20 November for a dropped deliverable, the November EDF can show the invoice amount as GBP 3,000 and NRV as GBP 2,600, with the credit note number in remarks. Some banks prefer the net figure in both columns; ask once and stay consistent.
Credit note issued after you file. The EDF has already been entered in EDPMS. You do not quietly edit it. Instead, tell your AD bank in writing, attach the credit note, and ask how it wants to reduce the amount to be realised. Our credit note generator produces a clean document to attach.
Mistakes that cause matching trouble
- Converting NRV into rupees. NRV stays in invoice currency. Only field 1.22 is in INR.
- Deducting GST or TDS. Export invoices under LUT carry no IGST, and foreign withholding tax is an income-tax matter. Neither belongs in NRV unless your bank specifically asks.
- Rounding to make totals neat. Use the actual figures from the invoice and agreements.
- Leaving NRV blank. Banks may reject a row with an empty column. If it equals the amount, write the amount.
- No paper trail. Any NRV lower than the invoice amount should point to a document: contract clause, agency agreement or credit note.
This is general information, not legal or tax advice. Where your contracts have unusual deduction terms, run them past your CA before filing.
Frequently asked questions
Is net realisable value the same as the invoice amount on the EDF?
Usually, yes. If you expect the client to pay the full invoice amount, NRV equals the invoice amount. It differs only when an agreed, known deduction such as a discount, commission or credit note will reduce what you receive.
Should I deduct expected bank charges from NRV?
Generally not, because intermediary charges are unpredictable and not agreed with the client. Declare the full expected amount and explain any small shortfall at realisation. Your AD bank publishes its own approach, so confirm how it prefers bank charges to be handled.
Which currency do I use for NRV in Part 2B?
The same currency as the invoice. A EUR invoice gets a EUR NRV. Only field 1.22, the total value of the EDF, is stated in Indian rupees, in figures and words.
What if the client pays less than the NRV I declared?
The EDPMS entry will show a shortfall. Ask the client for the reason, collect evidence (bank advice, correspondence, credit note), and write to your AD bank explaining it. If you will not recover the balance, ask the bank what it needs to treat it as reduced or written off.
Can I change the NRV after the EDF is submitted?
Not by editing the form yourself. Once the bank has entered the EDF into EDPMS, any reduction goes through the bank with supporting documents. Keep a written record of what you asked for and what the bank confirmed.
Bottom line
NRV is simply your honest expectation of what each invoice will bring in, in its own currency, after agreed deductions. Keep it equal to the invoice amount unless a document says otherwise. The free EDF form generator has a dedicated NRV column for every Part 2B row, so you can fill it invoice by invoice and download a ready form.
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.