An eBRC can Help you get Tax Benefits for your Export Business!

3 minutes read

As an exporter, you understand that getting paid for your goods or services is just the start of a transaction. But to truly tap into the perks of your exports, you need to secure a BRC from DGFT (Directorate General of Foreign Trade). So, what does BRC stand for, you ask? Well, it’s a Bank Realisation Certificate; in other words, it’s a payment confirmation!

The BRC proves that you’ve received your dues and unlocks opportunities to claim benefits under the Foreign Trade Policy (FTP) and bring back those precious export proceeds. In this post, we’ll dive into the enchanting world of obtaining the Bank Realisation Certificate from DGFT. Buckle up, exporters, because we’ll take your export business to soaring heights! But before we unveil the BRC secrets, let’s ensure you know some BRC details.

What is a BRC?

A BRC, or Bank Realisation Certificate, is an important document given to exporters to show they received payment for the goods or services they sold to other countries. It’s like a receipt that proves they got paid.

Why is it so important? Well, having a BRC comes with some cool perks. It allows exporters to claim benefits and rewards from the government. Think of it as a way for the government to say, “Great job! Here’s something extra for your hard work!”

A BRC is a certificate that proves exporters got paid and gives them access to extra rewards from the government. It’s like a symbol of success and a way for exporters to be rewarded for their efforts.

Importance of a BRC

The Directorate General of International Trade (DGFT) wants to make recording international trade and transactions easier. They use the BRC to automate and systematize this process. It’s like using technology to keep track of everything smoothly.
The BRC is not just a piece of paper; it’s also a valuable resource for economic data and financial statistics. It helps the government understand how much money is coming in and going out of the country through exports. This information helps make important decisions about the economy.
If a company wants to enjoy advantages under the Foreign Trade Policy, they must prove they received payment for their exports. That’s where the BRC comes in. It’s like a proof of payment that shows the company deserves those benefits and rewards.

How To Get a BRC From DGFT?

The Procedure for Acquiring eBRC – Explained Step by Step:

Receive Payment and Submit Documents:

As an export business, when you receive payment for your shipping bill in your bank account, you must submit the eFIRC (Electronic Foreign Inward Remittance Certificate) and export documents to your bank.

Bank Generates Electronic BRC (eBRC):

Once the bank receives the money from your exports, it creates an electronic Bank Realisation Certificate (eBRC).

XML File Generation and Digital Signature:

The bank generates an XML file containing all the eBRC details in a digital format.
The XML document is digitally signed by the bank, ensuring its authenticity.

Uploading XML File to DGFT Server:

The bank goes to the DGFT website and accesses the eBRC application.
They select the “Upload eBRC” option and send the XML file to the DGFT server.

DGFT Server Verification and Acknowledgement:

The DGFT server checks the user’s credentials and verifies the submitted XML file for accuracy.
If everything is in order, the server acknowledges the bank, confirming the successful upload.

Checking eBRC Status:

You can visit the DGFT website and log in to your account.
In your dashboard, look for the ‘Repositories’ option.
Under the ‘Bills Repositories’ tab, select ‘Explore’.
From the drop-down menu of ‘Select Bill’, choose eBRC.
Enter the relevant timeline and use the search function.
All the eBRCs uploaded by the banks where you have your accounts will be displayed on the screen.

Note: To ensure a seamless process, we kindly request exporters to obtain their eBRC within six months of receiving their payments. Failure to do so may result in undesirable repercussions.

How to Claim Export Incentives using eBRC

Here’s how to access and upload your eBRC on the DGFT website, as well as use it as proof for export incentives:

Visit the official website of DGFT: Go to DGFT and access the login page of the DGFT’s eBRC application.
Log in and collect your eBRC: Enter your credentials to access the eBRC application.
Submit eBRC for tax refund (in the case of export of services): If you are exporting services and want to claim a refund of integrated GST or input tax credit, submit your eBRC along with the tax refund application.

Ditch Paying High Fees for Your International Payments

While you claim benefits on your export transactions, don’t miss out on saving while receiving your international payments!

If you’re still using traditional methods of making international payments, such as wire transfers, PayPal, or conventional banking services, you are burdened with exorbitant fees and unfavourable exchange rates. These high transaction costs can eat into your export profits significantly, impeding the growth of your business.

Fortunately, Winvesta offers a solution that allows you to mitigate these expenses effectively. With our global collection accounts, you can reduce transaction costs and enjoy a cost-effective alternative. Our virtual multi-currency account comes with its own US ACH, UK account number, Euro IBAN, and CAD receiving account. This allows you to receive payments from over 180 countries in over 30+ currencies, with lower fees and quick conversion options. You can streamline your cross-border payments and enjoy cheap rates at just $3 + 0.99%

Conclusion

Obtaining a Bank Realisation Certificate (BRC) is crucial for export businesses as it validates payment receipts and enables claiming benefits under the Foreign Trade Policy. By acquiring an eBRC from the DGFT and leveraging this certificate, exporters can unlock rewards and maximize their export potential.

Additionally, Winvesta offers a comprehensive solution for cost-effective international payments. With virtual multi-currency accounts, exporters can reduce transaction costs, enjoy quick conversions, and streamline cross-border payments.

Open your Winvesta account today!