Billing - Fees and Taxes
When you make a payout from your RazorpayX account, you are charged fees and taxes, which is deducted from your account balance.
- Fees: This is the fee that Razorpay charges you to make a payout. This is charged according to your pricing plan.
- Tax: This is the GST on the fee, as per government regulations. This is collected by the government.
Read more: RazorpayX Pricing
When you make a payout using your virtual account, the fees and tax are charged as part of the payout in real-time.
For example, let us say the fees for a payout of ₹10,000 is ₹5 and the tax on this is ₹0.90.
When you make a payout ₹10,000 from your virtual account:
- ₹10,005.90 (₹10,000+ ₹5 + ₹0.90) is deducted from your virtual account balance.
- ₹10,000 is credited to your contact.
- ₹5 (fees) is credited to Razorpay.
- ₹0.90 (tax) collected by the government.
In case of a payout reversal, the fees and tax are also reversed.
When you make a payout from your current account, the fees and tax is not deducted in real-time as part of the payout. Instead, fees and tax are collected on a regular frequency and appear as a payout in your account statement. This is an automated process and does not require any action from you.
For example, the fees and tax on all payouts made in the 1st week of January, that is, between January 01 to January 07, is calculated and collected on January 08.
By default, RazorpayX offers you Free Payouts. When available, Free Payouts will be used to process payouts. When a Free Payout is used, only the payout amount is deducted from your account balance. You are not charged any fees and tax (neither from your account balance nor from your Credits).
- You are given Free Payout at the beginning of each month.
- Free Payouts expire at end of the calendar month. They cannot be carried over.
- Free Payouts are alloted on an account level. That is, your current and virtual accounts are each alloted Free Payouts. These are applicable only for the alloted account and cannot be transferred.
You maybe given 15 Free Payouts for your current account and 10 for your virtual account on August 01.
- You cannot transfer the Free Payouts from your current account to your virtual account and vice versa.
- If not used, these Free payouts will expire on August 31.
There are 2 reports you can download from the Dashboard.
This report contains details of fees and tax for payouts made using both your virtual and current accounts.
To download this report, navigate to My Account & Settings → Billing → select Report from the Monthly Invoice section. The short animation below shows you how you can download the Invoice Reconciliation Report.
This report contains details of fees and tax for payouts made using your current account only.
To download this report, navigate to My Account & Settings → Billing → select Past Fee Deductions from the Billing Plans section → click Export and follow the on-screen instructions. The short animation below shows you how you can download the Fee Recovery Report.
Shown below is a snippet from a sample report.
Apart from the various fields in the report containing details of each transaction, 2 fields of interest are:
- Virtual account: This column will say
auto_paid because the fees and tax is collected as part of the payout.
- Current account: This column contains a unique identifier associated with the fee and tax collected. This is because, for current accounts, fees and tax are collected on a regular frequency and not on a per payout basis. Multiple payouts can have the same
- Virtual account: This column will be blank because the fees and tax is collected as part of the payout.
- Current account: The date and time when the fee and tax collection was initiated by RazorpayX.
free_payout - Indicated a Free Payout was used to process the payout. In such scenarios, you are not charged any fees and tax. Only the payout amount is deducted from your account balance.
For reversals, amount = (original payout amount + fees + tax). Fee and tax for reversals appear with a minus symbol. This is to indicate they are returned to you and also help with your reconciliation.
This is a consolidated statement of all fees and tax deducted from your virtual and current accounts.
Shown below is a snippet of a sample invoice.
To download the Monthly Tax Invoice, navigate to My Account & Settings → Billing → select Invoice from the Monthly Invoice section. The short animation below shows you how you can download the Monthly Tax Invoice.