An advocate who advises a foreign client in their personal capacity may fall within RBI's statement that individuals providing services abroad are not required to report. A law firm organised as a partnership, LLP or company, or a proprietorship practice run as a business, should assume it must file a monthly Export Declaration Form. The deciding question is who the contracting party is: you as an individual, or your firm. RBI's FAQs on the point are still pending.
Key takeaways
- On 7 October 2026, RBI's Governor said individuals providing services abroad are not required to report, and the Deputy Governor said personal-contract transactions are outside the requirement. FAQs are awaited.
- The text of the 2026 regulations has not changed yet. Individual advocates should check with their bank until the FAQs are out.
- Law firms that bill foreign clients through a firm, LLP or company should assume the EDF applies, filed within 30 days from the end of the invoice month.
- Legal services receipts commonly carry purpose code P1004. Confirm it on every FIRA.
- Disbursements such as foreign filing fees paid on a client's behalf need separate thought on invoices and on the EDF.
Typical engagements and where they sit
Indian lawyers serve foreign clients in many ways. The engagement structure tells you most of what you need to know about the EDF.
| Engagement | Contracting party | Likely EDF position |
|---|---|---|
| Senior counsel's opinion on Indian law for a foreign company, billed personally | Individual advocate | Likely within RBI's "individuals" statement; check with bank |
| Solo practitioner billing through a trade name with GSTIN and current account | Proprietorship-like practice | Grey area; cautious course is to file |
| Law firm (partnership) advising a foreign investor on an Indian acquisition | Firm | Assume covered |
| LLP providing ongoing compliance support to a foreign group's Indian subsidiary, billed to the parent | LLP | Assume covered |
| Indian counsel engaged by a foreign law firm on a cross-border dispute | Depends on who signs the engagement letter | Check carefully |
If your engagement letters are signed in the firm's name and fees land in the firm's current account, the firm is the exporter.
What the 2026 regulations require of a firm
For a law firm exporting legal services from outside an SEZ, the EDF goes to the AD bank where the foreign fees are received. The firm can file one EDF a month covering all foreign invoices dated in that month, with each invoice as its own row in Part 2B. For services other than software, the EDF may alternatively be submitted on or before the date payment is received.
The full value of each invoice must be realised within 9 months from its date (12 months for rupee invoices). The bank can extend on a reasoned request. For invoices up to ₹10 lakh, the bank may close the EDPMS entry on the firm's declaration that payment has been received, which can be given periodically.
Worked example: a firm's month
Kesari & Rao LLP, a Mumbai law firm, billed three foreign clients in November 2026:
| Client | Country | Matter | Fees | Disbursements |
|---|---|---|---|---|
| Halden Capital Partners | Singapore | Indian-law due diligence | USD 18,000 | USD 350 (registry searches) |
| Ostrava Machinery a.s. | Czech Republic | Distributor agreement review | EUR 4,200 | Nil |
| Pemberton Holdings Ltd | UK | Arbitration counsel, stage 1 | GBP 9,600 | GBP 1,100 (expert fees paid on client's behalf) |
The firm's November EDF, due 30 December 2026:
- Part 1: Services; mode of delivery Internet for advice delivered remotely; AD code of the branch receiving fees.
- Part 2B: three rows. On its CA's advice, the firm discussed with its bank whether the disbursements should be included in the EDF value or handled separately, and followed the bank's guidance.
- Description of services: short and neutral, such as "Legal advisory services, November 2026". There is no need to describe privileged matter details on a bank form.
- Total value (1.22): roughly ₹30,00,000 for fees.
The Halden and Pemberton fees each exceed ₹10 lakh, so their EDPMS closure needs invoice, payment evidence and matching instructions. The smaller Ostrava invoice can be covered by the firm's periodic realisation declaration.
Confidentiality and the EDF
Lawyers are rightly cautious about what goes on third-party documents. The EDF needs the client's name and address, country, invoice details, amount, a description of services and a SAC code. It does not need matter specifics. Keep descriptions functional. If a client is sensitive about being named on bank paperwork, explain that the EDF is a regulatory requirement for the firm and that only commercial details are shared.
Our explainer on EDF Part 2B column by column shows exactly what each field needs.
Invoicing, FIRA and codes
Whether you are an individual advocate or a firm, foreign clients expect professional invoices, and your bank and CA need them too. Each should carry the client's legal name and country, a unique number and date, fees and any disbursements shown separately, currency, payment instructions and, if you export under LUT, "Supply meant for export under LUT without payment of IGST". The export invoice generator handles all of this.
For inward remittances, purpose code P1004 covers legal services. Ask your bank to apply it and check each FIRA. A FIRA tagged with a generic code can cause problems when matching receipts later, and correcting it months afterwards is harder.
Legal services have their own SAC headings under GST. Use the SAC code finder to shortlist and confirm the right one with your CA.
Tax and GST, briefly
Legal services supplied to a client abroad can be export of services, zero-rated under Section 16 of the IGST Act, if all five Section 2(6) conditions are met. Place of supply deserves attention where the work relates to immovable property in India or involves an Indian affiliate of the client.
Foreign fees are taxable income in India for a resident lawyer or firm. If a client withholds tax abroad, collect the withholding certificate so your CA can consider a foreign tax credit claim. The EDF does not change any of these obligations. This article is general information, not legal or tax advice, which may seem an odd thing to tell a lawyer, but FEMA and GST questions in your own practice deserve an independent view from a CA.
Frequently asked questions
Does an individual advocate advising a foreign client need to file the EDF?
RBI said on 7 October 2026 that individuals providing services abroad are not required to report, and personal-contract transactions are outside the requirement. The regulation text has not changed and FAQs are pending, so check with your bank in the meantime.
Do law firms need to file the EDF?
Firms, LLPs and companies exporting legal services should assume yes. File one EDF per month with the AD bank receiving the foreign fees, within 30 days from the end of the invoice month.
Which purpose code applies to legal fees from abroad?
P1004 covers legal services. Ask your bank to tag receipts accordingly and check each FIRA, requesting a correction promptly if the code is wrong.
Should disbursements go on the EDF?
That depends on how you invoice them and what your bank expects. Show disbursements separately on the invoice and ask your CA and AD bank how to treat them on the EDF.
How much matter detail should go in the EDF description?
Very little. A functional description such as "Legal advisory services" is enough. The form needs commercial details, not privileged information.
Bottom line
Individual advocates have RBI's 7 October statement to lean on, pending FAQs; law firms should file monthly and keep descriptions lean. Prepare your firm's form in the free EDF form generator.
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.