A video production house in India that bills a foreign brand, agency or streaming client is exporting services, and from 1 October 2026 those invoices go on a monthly EDF to your AD bank. Each invoice you raise in a month (pre-production advance, shoot milestone, final delivery) becomes its own row in Part 2B, due within 30 days from the end of that month. The tricky parts for production companies are not the form but the billing: milestones, licence fees and pass-through costs.
Key takeaways
- File one EDF per month listing every foreign invoice raised in it, whatever stage of the project it relates to.
- Delivery mode is usually "Internet" when files go over a transfer link; physical media or on-site work abroad may need a different choice. Ask your bank.
- SAC and purpose codes depend on what you actually deliver: an ad film, a corporate video, post-production only, or footage licensing. Confirm both with your CA and bank.
- Pure pass-through costs (talent, location fees) are a grey area for the EDF. Agree a treatment with your bank and CA before you invoice.
- Each invoice must be realised within 9 months of its own date, so a long project does not stretch the deadline.
How production work is usually billed
Production projects rarely fit one tidy invoice. These are the common patterns and how each lands on the EDF.
| Billing pattern | Typical example | How it appears on the EDF |
|---|---|---|
| Milestone billing | 40% on script approval, 40% after the shoot, 20% on final delivery | Each milestone invoice is a separate Part 2B row in the month it is raised |
| Monthly retainer | Six social cut-downs a month for a European brand | One row per monthly invoice |
| Day-rate crew or edit hire | Editor billed at a daily rate for a US agency | One row per invoice, however many days it covers |
| Post-production only | Colour grading and sound mix for a feature shot abroad | Same treatment; the description should say post-production |
| Licence or usage fee | Fee for extended usage rights on footage you own | Ask your CA whether it is a service or royalty-type income before coding it |
Milestone billing is where most confusion arises. The trigger for the EDF is the invoice date, not the project start or delivery date. If you raise the shoot milestone on 28 November and the delivery invoice on 9 January, they go on two different EDFs. Our article on part payments and milestone billing covers the mechanics.
Mode of delivery: not always "Internet"
Field 1.4 offers Air, Land, Sea, Post/Courier, Internet and Others. For most production work today, masters and cut-downs are delivered through a file transfer link, so "Internet" is the natural answer.
Two situations are less clear:
- Physical deliverables. If you courier drives or archival media to the client, "Post/Courier" may describe delivery better.
- Shoots abroad. If your crew travels to film on location for the foreign client, the service is performed outside India. Whether "Others" fits better than "Internet" is a question to put to your bank.
Pick one approach per type of job and apply it consistently.
Codes: SAC and purpose
The SAC code goes in each Part 2B row; the purpose code goes on the bank's record of the inward remittance. Production companies span several categories, so do not copy a code from another studio.
- Advertising films and commercials may sit with advertising services (SAC 998361 is the advertising services code), and the matching purpose code is often P1007 (advertising, trade fair, market research). Confirm both.
- Corporate, documentary or entertainment production usually falls under a different SAC group for audiovisual production. Use the SAC code finder to shortlist, then confirm with your CA.
- Post-production only may have its own classification.
- Purpose codes for non-advertising audiovisual work: ask your bank which code it applies, rather than guessing.
Shoot expenses and pass-through costs
Production budgets often include costs you pay on the client's behalf: talent fees, location permits, equipment rental, travel. Some studios bill these as part of their fee; others list them separately "at cost".
Whether a pure reimbursement belongs in the EDF value is not settled by the facts available to us. Practice varies, and the answer can depend on how the contract is drafted and how GST treats the cost. Read our article on reimbursement of expenses from foreign clients, then agree an approach with your CA and AD bank. Whatever you decide, the amount on the EDF should match the invoice the client actually pays.
A worked example
Monsoon Frame Studios Pvt Ltd in Mumbai is producing a product film for a Berlin agency. Contract value: EUR 42,000, billed in three milestones. It also edits monthly social content for a Toronto brand.
Invoices raised in November 2026:
| Invoice | Client | Description | Currency amount | INR value |
|---|---|---|---|---|
| MFS/26/087 | Kranich Werbung GmbH | Milestone 2: principal photography | EUR 16,800 | ₹15,46,000 |
| MFS/26/088 | Northline Goods Inc | Social cut-downs, November | CAD 5,500 | ₹3,31,000 |
| MFS/26/089 | Kranich Werbung GmbH | Location and talent costs at actuals | EUR 3,200 | ₹2,94,000 |
Monsoon files one EDF for November with three rows, due 30 December 2026. Invoice 089 is the pass-through line; the studio included it because the client pays it as a separate invoice, after agreeing the treatment with its CA. The first milestone, invoiced in October, was on the October EDF; the final delivery milestone, expected in January 2027, will go on that month's EDF.
Realisation runs invoice by invoice. MFS/26/087 must be paid within 9 months of its November date. Because it exceeds ₹10 lakh, the bank will need the invoice, FIRA and matching instructions to close the EDPMS entry. The two smaller invoices can be closed on a periodic realisation declaration.
GST and the LUT
Production services to a foreign client are generally zero-rated if all five conditions for export of services are met. Place of supply deserves care when work involves physical goods in India or events, so check with your CA. Most studios export under LUT, with the invoice stating "Supply meant for export under LUT without payment of IGST". The free export invoice generator adds that line automatically.
The EDF is a FEMA declaration and does not change your GST or income-tax obligations. This is general information, not legal or tax advice.
Frequently asked questions
Does each milestone invoice need its own EDF?
No. Each milestone invoice is one row in Part 2B of the EDF for the month it was raised. If two milestones are invoiced in the same month, both go on that month's EDF.
What mode of delivery should a production company choose?
"Internet" when files are delivered online, which covers most work. If you courier physical media or your crew performs the service abroad, discuss "Post/Courier" or "Others" with your bank.
Which purpose code applies to video production income?
For advertising films, P1007 is often used. Other audiovisual work may fall under a different code, so ask your bank which code it applies and keep it consistent across remittances.
Should talent and location costs go on the EDF?
It depends on how you invoice them and on your CA's view of their nature. Practice varies for pure reimbursements. Agree a treatment with your bank and CA, and keep the EDF consistent with what the client actually pays.
Do long projects get a longer realisation period?
No. The 9-month realisation period runs from each invoice's own date (12 months for rupee invoices). If a client is late, ask your bank for an extension before the deadline.
Bottom line
For a video production company, the EDF is a monthly snapshot of every foreign invoice you raised, milestone by milestone. Settle your codes, delivery mode and pass-through policy once, and the form becomes routine. The free EDF form generator turns a month's production invoices into a ready-to-sign declaration.
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.