Translation and localisation companies with overseas clients file one EDF a month with their AD bank, listing each export invoice of that month in Part 2B. The quirk in this industry is volume: dozens of small per-word or per-file invoices a month, often to the same few language-service buyers. Consolidating billing where contracts allow, picking a sensible SAC code for each line of business and using the ₹10 lakh declaration for small invoices will keep the paperwork proportionate.
Key takeaways
- File within 30 days from the end of the invoice month. One EDF covers all clients for that month.
- Mode of delivery is Internet for files delivered electronically. Mode of realisation is usually Others.
- Translation, interpretation and software localisation may sit under different SAC codes. Confirm each with your CA.
- Many small invoices? Consider monthly consolidated invoicing per client, if your contracts allow.
- For invoices up to ₹10 lakh, the bank may close EDPMS entries on your periodic realisation declaration.
How a localisation agency's month really looks
Picture Lingua Bridge Solutions LLP in Pune. In a normal month it handles:
- Document translation for a Spanish law firm, billed per source word.
- App string localisation for a Finnish games studio, billed per project with a minimum fee.
- Subtitling for a US streaming production house, billed per runtime minute.
- Remote interpretation for a Japanese manufacturer's video calls, billed per hour.
- Linguistic quality review for a large language-services company in Ireland, billed monthly on a retainer.
That is five clients, five billing methods and potentially thirty invoices if each job is invoiced separately. The EDF does not mind how many rows you add, but your bank's operations team and your own finance staff will appreciate fewer.
Consolidated invoicing: fewer rows, same compliance
Where the client agrees, issue one invoice per client per month listing every job, rather than one invoice per job. Each invoice still becomes exactly one Part 2B row.
| Billing approach | Invoices a month (Lingua Bridge) | Part 2B rows | Trade-off |
|---|---|---|---|
| One invoice per job | 30 | 30 | Fast cash on urgent jobs, heavy paperwork |
| One invoice per client per month | 5 | 5 | Cleaner EDF, slightly slower payment |
| Mixed: large jobs separately, small ones monthly | 9 | 9 | Practical middle ground |
Check your client contracts and purchase-order terms before switching. Some language-services buyers require a separate invoice per PO, and those invoices then each take a row.
Codes: be careful, not convenient
Translation and interpretation are generally classed as professional services, with their own SAC codes in that group. Software localisation that involves engineering work, such as handling resource files, builds and testing, may fit better under an IT services code. Subtitling for media can raise its own questions.
We are not going to hand you a code for each, because the right answer depends on how you contract and deliver. Use the SAC code finder to shortlist, then confirm with your CA. Use the same logic on purpose codes: there is no single obvious code that fits every translation receipt, so ask your AD bank which code it considers appropriate and make sure the FIRA reflects it. If a code is wrong, a purpose code correction letter sorts it out.
Worked example: Lingua Bridge's February EDF
Lingua Bridge moved most clients to monthly invoicing. Its February 2027 export invoices:
| Sr. | Recipient | Country | Invoice | Currency | Amount | Description |
|---|---|---|---|---|---|---|
| 1 | Ortega & Ruiz Abogados SLP | Spain | LBS/27/F01 | EUR | 3,860 | Legal translation EN-ES, 38,600 words, Feb 2027 |
| 2 | Pohjola Games Oy | Finland | LBS/27/F02 | EUR | 2,250 | App localisation, 6 languages, project LG-14 |
| 3 | Redwood Lane Pictures LLC | USA | LBS/27/F03 | USD | 4,140 | Subtitling, 230 runtime minutes |
| 4 | Kurosawa Industrial KK | Japan | LBS/27/F04 | JPY | 420,000 | Remote interpretation, 14 hours |
| 5 | Shannon Language Group Ltd | Ireland | LBS/27/F05 | EUR | 1,900 | Linguistic quality review retainer, Feb 2027 |
Five rows, each with the client's address, invoice date, NRV, SAC, contract reference (master agreement or PO) and remarks. The total in rupees goes in field 1.22, written in figures and words with the help of the amount in words converter. February 2027 invoices are due by 30 March 2027.
Note the Japanese yen row: the currency column is whatever the invoice is in. If Kurosawa pays in USD instead of JPY, you have a currency mismatch to explain at realisation, so agree the currency upfront.
Realisation and the small-invoice advantage
Translation invoices are often modest, and almost all fall below ₹10 lakh. That is good news: for invoices up to ₹10 lakh, your bank may close the EDPMS entry on your declaration that the money has been realised. You can give that declaration periodically, for example each quarter, covering many invoices. It is separate from the EDF.
The 9-month realisation clock still runs on every invoice from its date (12 months for rupee invoices). Large language-services companies tend to pay on fixed cycles, but direct clients sometimes forget. Run an ageing report monthly and chase anything past 90 days.
Paying freelance linguists abroad
Many agencies use translators based outside India. Paying them is an outward remittance, a different transaction with its own bank documentation, and under GST it is generally an import of services with reverse charge implications. It does not go on your EDF, which only covers what you export. Keep the two flows in separate ledgers.
GST, LUT and the individual question
Translation for clients abroad is generally an export of services when the Section 2(6) conditions are met, so it is zero-rated. Most agencies export under LUT and print "Supply meant for export under LUT without payment of IGST" on every invoice.
If you are an individual freelance translator rather than a business, RBI said on 7 October 2026 that individuals providing services abroad are not required to report, and FAQs are awaited. Our page for freelance translators covers that case. Agencies registered as firms, LLPs or companies should keep filing. This is general information, not legal or tax advice.
Frequently asked questions
Do translation agencies need to file an EDF for every job?
No. One EDF per month covers all export invoices raised in that month, to one or more clients. Each invoice becomes one row in Part 2B, so consolidating jobs into monthly invoices reduces the number of rows.
What mode of delivery should a localisation company choose?
Internet, for translated files, subtitles and localised builds delivered electronically. Remote interpretation over video calls is also delivered online. If a linguist travels abroad to interpret in person, ask your bank which option it prefers.
Which SAC code applies to translation services?
Translation and interpretation generally have their own SAC codes among professional services, while software localisation with engineering work may fit an IT services code. Shortlist with a SAC finder and confirm the code with your CA.
Can I declare small translation invoices without sending FIRAs?
For invoices up to ₹10 lakh, the bank may close the EDPMS entry on your declaration that the money has been realised, given periodically. Keep FIRAs or bank advices on file in case the bank or an auditor asks.
Do payments to foreign freelance translators go on my EDF?
No. The EDF covers your exports. Payments to linguists abroad are outward remittances handled through your bank with their own documents, and they have separate GST treatment.
Bottom line
For translation and localisation companies, the EDF is easy once billing is consolidated and codes are settled. Fewer, clearer invoices mean a shorter Part 2B and smoother realisation. Prepare your monthly declaration with 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.