# P0802 or P0807: choosing the software purpose code now that SOFTEX has ended

By CA Prachi Goel · Updated 2026-10-15 · Source: https://fxlayerhq.com/insights/p0802-or-p0807

Expert opinion · Exports

**Short answer.** P0807 is for off-site software exports: software built in India and delivered to the client abroad electronically, including licences and subscriptions to your own product. P0802 is for software consultancy and implementation: advising on, configuring or implementing systems, including work done at the client's site. Since 1 October 2026 both are declared on the monthly EDF instead of SOFTEX, so the code describes the work but no longer decides the form.

For years the choice between the two software codes followed the SOFTEX form: what went on SOFTEX was an off-site export, P0807. SOFTEX is gone, so the question has to be answered from the work itself.

## Key points

- P0807 is RBI's code for off-site software exports; P0802 for software consultancy and implementation.
- SOFTEX ended on 1 October 2026: software exports are declared on the monthly EDF like other services.
- For the EDF both codes count as software exports, due within 30 days of the month end.
- Choose the code from what the invoice sells, match it to the SAC code, and use it consistently with your bank.
- Maintenance of software already delivered is P0804; hosting and data processing are P0803.

## What changed on 1 October 2026

Under the [Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026](https://www.rbi.org.in/Scripts/BS_FemaNotifications.aspx?Id=13277), in force from 1 October 2026, the SOFTEX form is gone. Every export of services, software included, is declared on the [Export Declaration Form](https://fxlayerhq.com/insights/monthly-edf-for-services): one EDF a month covering all the month's invoices, given to the [AD bank](https://fxlayerhq.com/insights/role-of-the-ad-bank) through which the money comes in (STPI may take software exports, and SEZ units file with their SEZ authority), within 30 days from the end of the month. The operational guidelines are in A.P. (DIR Series) Circular No. 25 of 28 September 2026.

Other services may instead be declared on or before the day the payment arrives; software exports keep the 30-day monthly route. The proceeds are due within nine months of the invoice, twelve when invoiced in rupees.

## The two codes

RBI's list names [P0802](https://fxlayerhq.com/purpose-codes/p0802) "software consultancy / implementation" and [P0807](https://fxlayerhq.com/purpose-codes/p0807) "off-site software exports". Before October 2026 the line between them was drawn by the SOFTEX form: software developed in India and transmitted abroad went on SOFTEX and was coded P0807, while consultancy and implementation outside SOFTEX, including work at the client's site, was P0802. With SOFTEX gone, ask what the invoice sells.

| The work | Code | Why |
|---|---|---|
| Licence fees for software you own, delivered by download | P0807 | Software made in India, delivered off-site |
| Subscriptions to your own SaaS product from customers abroad | P0807 | Your software, used abroad over the internet |
| A fixed-price application built in India and handed over as code | P0807 | Development delivered from India; it was a SOFTEX export |
| Configuring and implementing an ERP for a client abroad | P0802 | Implementation work on the client's systems |
| A consultant working at the client's office abroad | P0802 | On-site consultancy, never an off-site export |
| Support and fixes to software already delivered | [P0804](https://fxlayerhq.com/purpose-codes/p0804) | Repair and maintenance of computers and software |
| Hosting, data processing or data entry | [P0803](https://fxlayerhq.com/purpose-codes/p0803) | Database and data processing |

## Custom development: the borderline case

Development for a client billed by the hour or month sits between the two. It is built in India and delivered electronically, which points to P0807, and under SOFTEX it was usually declared as an off-site export. P0802 is also widely used for development under a services contract, and freelance developers often receive it that way. Either is defensible; what matters is that the code agrees with the contract and the invoice, and that you use the same one each month. When in doubt, ask your AD bank which it reports, before the first receipt.

## Why the code still matters

The [purpose code](https://fxlayerhq.com/insights/rbi-purpose-codes) travels with the money. It appears on the FIRA, in the bank's reporting to RBI and on the IRM from which the [eBRC](https://fxlayerhq.com/insights/ebrc-and-firc) is generated. It should sit easily with the SAC code on your invoice: 998314 (IT design and development) or 997331 (licensing the right to use software) for P0807, and the consultancy and implementation services for P0802. A code that does not fit the invoice draws questions from the bank, and correcting it later takes a letter.

The code does not change the tax or GST. Either way the receipt is an export of services, zero-rated for GST when its conditions are met, and your income for income tax. If the client's country withheld tax, keep its certificate for the credit.

## Choosing it once, in FxLayer

FxLayer's purpose-code picker asks what kind of work was done and suggests the code with its alternative, the invoice maker maps the SAC code to the code, and the monthly EDF groups software exports separately so each goes to the right authority on time.

## Questions

**Is SOFTEX still needed?**

No, for invoices dated from 1 October 2026. Software exports are declared on the monthly EDF instead. SOFTEX forms already filed for earlier exports stay as they are.

**I am a freelance developer. Which code should my client's payment carry?**

For building or fixing software for a client, P0802 is commonly used, and P0807 also fits development delivered from India. Pick one with your bank and keep to it. Licences or subscriptions to your own product are P0807.

**Do software exports have to go through STPI?**

No. The EDF goes to the AD bank through which the money comes in. STPI may take the EDF for software exports, and SEZ units file with their SEZ authority.

**Can a wrong purpose code be corrected?**

Write to the bank with the invoice and the contract and ask it to correct the code it reported. It is easier to give the right code on the first receipt.

## Sources

- [RBI Notification No. FEMA 23(R)/2026-RB of 13 January 2026: Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026](https://www.rbi.org.in/Scripts/BS_FemaNotifications.aspx?Id=13277)
- [RBI Notification No. FEMA 23(R)/(1)/2026-RB of 22 September 2026: the amendment regulations](https://rbi.org.in/Scripts/BS_FemaNotifications.aspx?Id=13714)
- [RBI notifications, including the A.P. (DIR Series) circulars to AD banks](https://www.rbi.org.in/Scripts/NotificationUser.aspx)

This article is general information on Indian foreign exchange and tax rules as they stood on the date shown. It is not legal or tax advice. Rules and limits change; confirm the current position with your AD bank, the relevant RBI Master Direction or your adviser before acting.