FEMA Purpose Code
Finder
Inward (P Codes) & Outward (S Codes) — All 196 Codes

P0802 — "Software Consultancy/Implementation Services (Other than those covered in SOFTEX)" is the most commonly used code for Indian IT companies and freelancers receiving payment for software development, consulting, and implementation services billed through commercial invoices. Use P0804 for ongoing software maintenance and support services. P0805 for licensing of software or SaaS subscriptions. If your software is exported under the SOFTEX declaration (for packaged/shrink-wrapped software), a different process applies and you should consult your AD bank. P0806 is used for professional and management consulting services (non-IT). TAXAJ can advise on the exact right code for your specific service type.

P1301 — "Inward Remittance from Indian Non-Residents Towards Family Maintenance and Savings" is the correct code for NRIs sending money to their family in India for day-to-day maintenance, living expenses, or to deposit in their NRE/NRO savings account. P1302 is used for personal gifts and donations (not family maintenance — this is a clear distinction). The bank will typically ask for a brief declaration and sometimes a copy of the NRI's passport or OCI card. No TDS or tax is applicable on P1301 remittances at the time of receipt in India — the tax treatment depends on the nature of the funds (salary already taxed abroad, etc.).

For a foreign company or investor sending money to an Indian company in exchange for equity shares (FDI inflow), the purpose code is P0001 — "Repatriation of Indian Investment Abroad in Equity Capital (Shares)" — wait, this is for repatriation. For actual FDI INFLOW: the bank typically uses specific capital account codes. The Indian company's AD bank handles FDI receipt under the FEMA capital account transaction reporting framework. Upon receipt, the company must file Form FC-GPR with RBI within 30 days of share allotment. The purpose code used by the remitting foreign bank is typically "FDI in equity" in their own country's system. The Indian AD bank maps this to the appropriate FETERS code. Consult TAXAJ for the exact FC-GPR and FETERS compliance for your FDI transaction.

For paying royalties and licence fees to a foreign company from India (outward remittance): S1101 — "Payments for Royalties" is the primary code. This includes royalties for use of intellectual property (patents, trademarks, copyrights, designs, know-how). For licence fees specifically: S1102 — "Payment for Franchise Services". For technical services: S1103 — "Payments for Software Licensing". For the payment, Form 15CB (CA certificate) is typically required as royalty payments to foreign entities are generally taxable in India. The DTAA (Double Taxation Avoidance Agreement) with the recipient country may reduce the withholding tax rate. TAXAJ handles 15CA/15CB for royalty payments with DTAA advisory.

They reference the same underlying transaction but use different code systems in practice. The RBI Purpose Codes (P/S codes) are used by the bank for reporting to RBI under FETERS. The nature of payment description in Form 15CA/15CB aligns with these codes but follows the Rule 37BB categorization from the Income Tax Act perspective. Banks map 15CA/15CB descriptions to their internal FETERS codes. To ensure consistency: (1) Your CA must understand what purpose code the bank will use; (2) The 15CA/15CB description should clearly match the S-code purpose; (3) The supporting documents (invoice, contract, agreement) must match both. TAXAJ ensures alignment between the 15CA/15CB description and the bank's FETERS reporting code to prevent compliance mismatches.