Exporting services to a Thai client from India means invoicing in USD or THB, receiving payment into your Indian bank, and listing each invoice on your monthly EDF with "Thailand" in the country column of Part 2B. The point that most often surprises Indian exporters is that a Thai client may deduct withholding tax from the payment, so agree up front whether your fee is gross or net, and ask for the withholding certificate if tax is deducted. As with any service export, the money must reach India within 9 months of the invoice date.
Key takeaways
- USD is the most common invoice currency for Thai B2B clients; THB is possible if the client insists.
- The client's bank may need your invoice and contract to process an outward payment; send clean documents early.
- Thai clients may withhold tax on fees to foreign service providers; the India–Thailand DTAA can be relevant.
- Your Indian bank is the AD bank for the EDF; list each invoice with country Thailand.
- File within 30 days from the end of the invoice month; realise within 9 months of each invoice date.
Currency choice
| Currency | When it fits | Points to consider |
|---|---|---|
| USD | Most B2B contracts, especially with regional or multinational clients | Client converts THB to USD |
| THB | Client wants a local-currency invoice | Your bank converts THB; check how it handles THB credits |
| INR | Rarely used for Thai clients | 12-month realisation window applies |
If you invoice in THB, ask your Indian bank in advance how it receives and converts THB, so there are no surprises on the first payment.
How Thai clients pay, and what their bank may ask for
Most Thai business clients pay by international wire from their Thai bank. Outward payments from Thailand for services often need supporting documents on the client's side, such as your invoice and the service agreement. The exact requirements are set by the client's bank, not by you.
What you can do is make those documents easy to accept:
- a clear invoice showing your legal name, address, GSTIN, the client's legal name and Thai address, description of services, currency, amount and bank details;
- a signed agreement or purchase order matching the invoice description;
- consistent names everywhere, since mismatches cause delays.
Our export invoice generator produces a clean format with your bank details and the LUT wording.
Withholding tax: gross or net
Thai companies paying foreign service providers may be required to deduct withholding tax on certain types of payments, depending on the nature of the service and treaty position. We are not quoting rates or rules here; they depend on Thai law, the India–Thailand DTAA and the facts.
Practical steps:
- Ask before you sign whether the client expects to withhold tax.
- Agree in the contract whether your fee is gross (tax deducted from it) or net (client grosses up so you receive the full fee).
- Get the withholding certificate or equivalent evidence for any amount deducted.
- Talk to your CA about claiming credit in India through Form 67, and about any treaty documentation, such as a tax residency certificate, the client may request.
Our article on foreign tax credit and Form 67 explains the Indian side.
How withholding shows up on the EDF
If tax is withheld, you receive less than the invoice. Keep the invoice amount in the amount column of Part 2B. Show the expected net receipt in the NRV column, and note "withholding tax deducted by client, certificate held" in remarks once known. Ask your bank how it wants the deducted portion evidenced when closing the EDPMS entry, since the shortfall is not a bank charge.
A worked example
Lotus Bay Technologies Pvt Ltd in Noida provides cloud support to a Bangkok hotel group and a Chiang Mai e-commerce startup. October 2026 invoices:
| Invoice | Date | Client | Description | Currency | Amount |
|---|---|---|---|---|---|
| LBT/TH/014 | 1 Oct 2026 | Bangkok hotel group | Managed cloud support, October | USD | 7,500 |
| LBT/TH/015 | 9 Oct 2026 | Chiang Mai startup | Migration project, phase 1 | USD | 4,000 |
| LBT/TH/016 | 31 Oct 2026 | Bangkok hotel group | Additional hours, 22 h | USD | 1,320 |
Lotus Bay files one EDF for October with three rows, country Thailand, SAC 998315 (hosting and IT infrastructure) as confirmed with its CA, by 30 November 2026.
The hotel group's contract says fees are gross. When it pays LBT/TH/014, it deducts withholding tax and sends a certificate; the bank's payment advice shows the net amount. Lotus Bay records invoice value in Part 2B, the net in its register, and keeps the certificate for Form 67 and the bank. The startup's contract says fees are net of any taxes, so it pays the full USD 4,000.
At an assumed rate of ₹84.00, LBT/TH/014 is ₹6,30,000, under ₹10 lakh; once realised, Lotus Bay can close its EDPMS entries through a periodic declaration of realisation. Our realisation declaration tool prepares it.
Purpose codes and GST
Your bank assigns a purpose code to each Thai inward remittance. For cloud and IT work, software and technical-service codes are typical; for consulting, P1006; for advertising or market research, P1007. Check each FIRA and ask for corrections promptly.
For GST, services to a Thai business located in Thailand usually have their place of supply outside India and can be zero-rated if the Section 2(6) IGST Act conditions are met. Under LUT, print "Supply meant for export under LUT without payment of IGST". The EDF does not change GST or income tax.
This article is general information, not legal or tax advice. For Thai tax questions, your client's advisers and a CA with cross-border experience should guide you.
Frequently asked questions
Do Thai clients deduct tax from payments to Indian service providers?
Some do, depending on the type of service and the applicable rules, including the India–Thailand DTAA. Ask the client before signing, agree whether the fee is gross or net, and collect a withholding certificate for any tax deducted.
Which currency is best for invoicing Thai clients?
USD is the most common choice for business clients and is straightforward for Indian banks. THB is possible if the client prefers; check with your bank first how it handles THB receipts.
How do I show withholding tax deductions on the EDF?
Keep the full invoice amount in the amount column and enter the expected net receipt in the NRV column, with a note in remarks. Ask your bank what evidence, such as the withholding certificate, it needs to close the EDPMS entry.
What documents does a Thai client need to pay me?
Your invoice and often the service agreement, because the client's bank may need them for the outward payment. Make sure names, amounts and descriptions are consistent across documents to avoid delays.
What country do I enter in Part 2B for a Thai client?
Enter Thailand in the country column for each invoice, and in field 1.17 where relevant. Use the location of the service recipient, not that of any bank in the payment route.
Bottom line
Thailand is an easy market to serve once withholding and documentation are agreed at the contract stage. Invoice clearly with our export invoice tool and declare each month's Thai invoices 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.