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Export, FEMA & banking glossary
Every term you meet when exporting services from India — from AD code and EDPMS to LUT, purpose codes and SWIFT — in plain English with a worked example.
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ACH TransferAn ACH transfer is a low-cost US domestic bank payment sent through the Automated Clearing House network, typically set…Acknowledgement NumberAn acknowledgement number is a reference issued when a filing or submission is received, serving as proof that a docume…AD BankAn AD bank is an Authorised Dealer Category-I bank licensed by RBI to handle foreign exchange, and the place where most…AD CodeAn AD code is the code that identifies an Authorised Dealer bank branch for export transactions, entered in field 1.6 o…Advance PaymentAn advance payment is money a foreign client pays before the service is fully delivered or invoiced, which affects EDF …Amount in WordsAmount in words is the written-out form of a monetary figure, such as "Rupees Six Lakh Seventy-Two Thousand Only", used…Authorised Dealer Category-IAuthorised Dealer Category-I is the RBI licence category for banks permitted to handle the full range of foreign-exchan…Authorised SignatoryAn authorised signatory is a person formally empowered to sign documents and operate accounts on behalf of a company, L…
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Bank Charges (OUR/SHA/BEN)OUR, SHA and BEN are SWIFT instructions that decide who pays bank fees on an international transfer: the sender pays al…Bank Guarantee (BG)A bank guarantee (BG) is a bank's promise to pay a stated sum if its customer fails to meet a contractual obligation, o…Bill of SupplyA bill of supply is the GST document issued instead of a tax invoice when no GST can be charged, typically for exempt s…Board ResolutionA board resolution is a formal written decision of a company's board of directors, recorded in minutes and often certif…BRCA BRC (Bank Realisation Certificate) is a bank-issued certificate confirming that payment for an export has been receiv…
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CA CertificateA CA certificate is a signed statement from a practising chartered accountant certifying specific facts, such as turnov…CGSTCGST (Central Goods and Services Tax) is the central share of GST charged, alongside SGST, on supplies made within the …Commercial InvoiceA commercial invoice is the seller's final bill in international trade, recording the buyer, description, quantity, val…CompoundingCompounding under FEMA is a voluntary process where a person admits a foreign-exchange contravention and settles it by …ConsigneeA consignee is the person or business to whom goods are sent or services are delivered; on the EDF, field 1.13 records …Contract NumberA contract number is the reference of the agreement, purchase order or statement of work behind a sale; the EDF's Part …Correspondent BankA correspondent bank is a foreign bank that provides accounts and payment services to another bank, letting an Indian b…Credit NoteA credit note is a document a supplier issues to reduce the value of an earlier invoice, for example after a discount, …Current AccountA current account is a bank account designed for businesses, allowing frequent and high-value transactions, typically w…
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Debit NoteA debit note is a document a supplier issues to increase the amount payable on an earlier invoice, for example after ex…DeclarantA declarant is the person who signs a formal declaration on behalf of themselves or a business; on the EDF, the declara…Development CommissionerThe Development Commissioner is the government officer heading an SEZ, and the authority to whom SEZ units submit their…DGFTDGFT (Directorate General of Foreign Trade) is the Commerce Ministry body that issues IECs, administers Foreign Trade P…Digital Signature Certificate (DSC)A Digital Signature Certificate (DSC) is an electronic credential issued by a licensed certifying authority that lets a…DTA UnitA DTA unit is a business located in India's Domestic Tariff Area, meaning anywhere outside SEZs, and most service expor…DTAAA DTAA (Double Taxation Avoidance Agreement) is a tax treaty between two countries that decides which country may tax a…
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E-InvoiceAn e-invoice under GST is a business invoice reported electronically to the government's Invoice Registration Portal, w…eBRCAn eBRC (electronic Bank Realisation Certificate) is the digital certificate issued after an export payment is matched …EDF RegisterAn EDF register is an exporter's own running record of every EDF filed, linking each invoice to its filing date, bank a…EDPMSEDPMS (Export Data Processing and Monitoring System) is RBI's database where AD banks record each export declaration an…EEFC AccountAn EEFC (Exchange Earners' Foreign Currency) account lets Indian exporters keep export earnings in foreign currency at …Exchange RateAn exchange rate is the price of one currency in terms of another, such as ₹84 per US dollar, used to convert foreign-c…Export Declaration Form (EDF)The Export Declaration Form (EDF) is the FEMA form in the Annex to RBI's 2026 export regulations on which Indian export…Export IncentivesExport incentives are government benefits, such as duty credits, scheme rewards or tax reliefs, offered to encourage ex…Export of ServicesExport of services is an Indian supplier's supply of a service to a recipient abroad, zero-rated under GST when the Sec…ExporterAn exporter is a person or business in India that supplies goods or services to a recipient outside India; on the EDF, …
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FEMAFEMA (Foreign Exchange Management Act, 1999) is the Indian law governing foreign-exchange transactions, under which RBI…FIRAA FIRA (Foreign Inward Remittance Advice) is the bank's document confirming that a foreign payment reached your Indian …FIRCA FIRC (Foreign Inward Remittance Certificate) is a bank certificate confirming that foreign currency was received into…Forex MarkupForex markup is the margin a bank or payment provider adds to the market exchange rate when converting currency, so you…Form 67Form 67 is the Indian income-tax statement a resident files to claim credit for tax paid or withheld abroad on foreign …
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Global Capability Centre (GCC)A Global Capability Centre (GCC) is an offshore unit, usually an Indian subsidiary of a foreign company, that provides …GST RefundA GST refund is money the government returns to a taxpayer, and for service exporters it usually means unused input tax…GSTINA GSTIN (Goods and Services Tax Identification Number) is the 15-character state-wise GST registration number of a busi…GSTR-1GSTR-1 is the GST return in which a registered business reports its outward supplies, including exports, for each month…
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ICEGATEICEGATE is the Indian Customs electronic portal where goods exporters and brokers file shipping bills and other customs…IEC (Importer Exporter Code)The IEC (Importer Exporter Code) is a 10-character business identifier issued by DGFT, entered in field 1.7 of the EDF …IFSCIFSC (Indian Financial System Code) is an 11-character code identifying an Indian bank branch for domestic transfers su…IGSTIGST (Integrated Goods and Services Tax) is the GST charged on inter-state supplies and imports, and the tax relevant t…Intermediary BankAn intermediary bank is a bank that passes a cross-border payment between the sender's bank and the recipient's bank, o…Intermediary ServicesIntermediary services are broker or agent services that arrange a supply between two other parties; under GST their pla…Invoice DateThe invoice date is the date printed on an invoice; for service exporters it sets the EDF deadline (30 days from month-…Inward RemittanceAn inward remittance is money sent from outside India into an Indian bank account, such as a foreign client's payment f…IRNAn IRN (Invoice Reference Number) is the unique 64-character code the GST Invoice Registration Portal generates when it…
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Lakh and CroreLakh and crore are Indian number units: one lakh is 1,00,000 (one hundred thousand) and one crore is 1,00,00,000 (ten m…LEO (Let Export Order)The LEO (Let Export Order) is customs permission allowing goods to leave India after clearance; its date appears in EDF…Letter of Credit (L/C)A letter of credit (L/C) is a bank's written undertaking to pay an exporter on behalf of the buyer once agreed document…LetterheadA letterhead is the printed or digital heading on official business stationery that shows the organisation's name, logo…LUT (Letter of Undertaking)An LUT (Letter of Undertaking) is a GST filing on Form GST RFD-11 that lets exporters supply goods or services without …
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Merchanting TradeMerchanting trade is a transaction where an Indian intermediary buys goods from one foreign country and sells them to a…Mode 1 (Cross-Border Supply)Mode 1, or cross-border supply, is the trade-in-services category where a service travels from one country to another, …Mode of DeliveryMode of delivery is how an export reaches the client; on the EDF, field 1.4 lists Air, Land, Sea, Post/Courier, Interne…Mode of RealisationMode of realisation is how the export proceeds will be received; on the EDF, field 1.12 offers L/C, BG or Others, and m…MT103An MT103 is the standard SWIFT message for a single cross-border customer payment, showing payer, beneficiary, amount, …
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PANPAN (Permanent Account Number) is the 10-character income-tax identifier issued to Indian taxpayers, entered in field 1…Payment Aggregator Cross-Border (PA-CB)A Payment Aggregator Cross-Border (PA-CB) is an RBI-regulated entity that collects and settles payments for cross-borde…Payment GatewayA payment gateway is a technology service that securely captures and authorises online card, wallet or bank payments fo…Payment ReceiptA payment receipt is a document a seller gives a payer confirming that a stated amount was received, on what date, by w…Place of SupplyPlace of supply is the location GST treats a supply as made in; for an export of services it must be outside India, as …Proforma InvoiceA proforma invoice is a preliminary bill sent before a sale or service is completed, setting out expected price and ter…Purpose CodeA purpose code is the RBI classification code attached to a foreign remittance, such as P0802 for software consultancy,…
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RBIThe RBI (Reserve Bank of India) is India's central bank and foreign-exchange regulator, which issued the 2026 export re…RealisationRealisation means actually receiving the full export value from the foreign buyer into India, which must happen within …Realisation PeriodThe realisation period is the time allowed to receive full export value, which for services is 9 months from invoice da…Reference RateA reference rate is an officially published benchmark exchange rate, in India issued daily by FBIL for major currencies…Remittance AdviceA remittance advice is a note a payer sends a supplier listing which invoices a payment covers, the amounts paid and an…RepatriationRepatriation means bringing export earnings or other foreign-currency funds back into India through the banking channel…RFD-01RFD-01 is the GST form used to apply online for a refund, including refunds of unused input tax credit or IGST paid on …RFD-11RFD-11 is the GST form through which an exporter furnishes a Letter of Undertaking (LUT), allowing exports of goods or …
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SAC CodeA SAC (Services Accounting Code) is the six-digit GST classification code for a service, shown on invoices and in the S…Section 44ADASection 44ADA is the Indian presumptive taxation scheme for specified professionals, under which 50 percent of gross re…SEPA TransferA SEPA transfer is a euro payment sent within the Single Euro Payments Area using an IBAN, treated like a domestic tran…Service RecipientA service recipient is the person or business that receives and is billed for a service; Part 2B of the EDF records eac…Set-OffSet-off means adjusting money owed to an exporter by a foreign party against money the exporter owes that party, instea…SEZAn SEZ (Special Economic Zone) is a designated area with its own customs and tax framework; SEZ units file their EDF wi…SGSTSGST (State Goods and Services Tax) is the state's share of GST, charged with CGST on supplies within the same state; e…Shipping BillA shipping bill is the customs document filed to export goods from India; at EDI ports it doubles as the EDF, but it do…SOFTEXSOFTEX was the separate form Indian software exporters used to declare software exports; from 1 October 2026 it is repl…Specified AuthorityA specified authority is the body to which an exporter must submit the EDF, such as an AD bank, STPI or SEZ Development…SRVA (Special Rupee Vostro Account)An SRVA (Special Rupee Vostro Account) is a rupee account a foreign bank holds with an Indian AD bank to settle trade i…STPISTPI (Software Technology Parks of India) is a government body supporting software exporters; under the 2026 rules it r…SWIFTSWIFT is the global messaging network banks use to send secure payment instructions across borders, and the usual route…SWIFT Code (BIC)A SWIFT code, or BIC, is an 8- or 11-character identifier for a bank or branch used in international payments; foreign …
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Tax InvoiceA tax invoice is the GST document a registered supplier issues for a taxable supply, showing the GSTIN, invoice number,…Tax Residency CertificateA Tax Residency Certificate (TRC) is an official certificate from the Indian income-tax department confirming that a pe…TDSTDS (Tax Deducted at Source) is India's system in which a payer deducts income tax from certain payments, such as profe…Third-Party PaymentA third-party payment is when someone other than the actual service recipient pays the exporter, such as a parent compa…
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Virtual AccountA virtual account is a set of local bank details abroad, issued by a platform or bank, that lets overseas clients pay y…Vostro AccountA vostro account is an account a foreign bank holds with an Indian bank, usually in rupees, through which cross-border …VPA (UPI ID)A VPA (Virtual Payment Address), commonly called a UPI ID, is an identifier like name@bank that links to a bank account…
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W-8BEN-EW-8BEN-E is a US tax form a non-US business gives a US payer to certify its foreign status and, where eligible, claim r…Wire TransferA wire transfer is an electronic bank-to-bank payment, and in international trade usually means a SWIFT transfer sent f…Withholding TaxWithholding tax is income tax that a payer deducts from a payment and deposits with its government before paying the ba…Write-OffA write-off, in export compliance, is the formal closure of an unrealised export receivable that cannot be recovered, d…