# FxLayer: full text for AI assistants > Foreign trade compliance software for Indian importers, exporters, merchant traders and services companies: IDPMS and EDPMS tracking, bank letters and forms (Form A1 / A2), Form 145 / 146 worksheets, the monthly services EDF and FX rates, alongside the company's ERP — and for freelancers paid from abroad, invoices without GST and every RBI purpose code in plain words. Made by Trianzor Private Limited, New Delhi. The map of the site is https://fxlayerhq.com/llms.txt. Every page below also has a Markdown copy at its address plus `.md`, the purpose codes are data at https://fxlayerhq.com/api/public/purpose-codes, and the MCP server at https://fxlayerhq.com/mcp answers the same content as tools (https://fxlayerhq.com/developers). ## What FxLayer is FEMA compliance software for Indian importers, exporters, merchant traders, services firms and chartered accountants: IDPMS and EDPMS matching and closure, Form A1 / A2 and AD bank letters, Form 145 / Form 146 worksheets, the monthly services EDF, merchanting trade (MTT) tracking and AD bank FX rate comparison, alongside the company's ERP. - IDPMS: Bills of Entry matched to outward remittances, with the settlement request to the AD bank - EDPMS: Shipping Bills and services invoices tracked to realisation, with the eBRC tracker - Form 145 (Parts A to D) and Form 146 worksheets under the Income-tax Rules, 2026, with the treaty rate and TDS worked out - Form A1, Form A2 and AD bank request letters, signed with a Class 3 DSC - The monthly services Export Declaration Form (EDF) and the FIRA and disposal requests for each receipt - Merchanting trade (MTT): both legs on one record, at most six months apart for trades from 1 October 2026 - AD bank FX rates compared against the interbank mid-rate, with the SWIFT gpi status of each payment - ERP connectors for Tally Prime, Zoho Books, SAP S/4HANA, SAP Business One, Microsoft Dynamics 365 Business Central, Oracle NetSuite, Odoo and QuickBooks Online Made by Trianzor Private Limited, New Delhi. Contact: hello@fxlayerhq.com. Plans: https://fxlayerhq.com/pricing. Product: https://fxlayerhq.com/solutions. ## Guides ### Paying a supplier in advance: what your bank will expect By CA Abhay Jaiswal · Updated 2026-10-06 · Source: https://fxlayerhq.com/insights/advance-import-payments Expert opinion · Imports **Short answer.** An advance payment for imports is remitted under purpose code S0101 against a proforma invoice or contract and recorded in IDPMS, where it stays open until the Bill of Entry for the goods is matched to it. Above the limit RBI sets, the bank asks for a letter of credit or a guarantee from the supplier's bank; if the goods never come, the advance is refunded. Paying in advance is often the price of getting the goods. For your bank, it is a payment that has left India with nothing to show for it yet, which is why it stays open until the Bill of Entry arrives. #### Key points - An import advance is paid under purpose code S0101, against a proforma invoice or contract. - Above the limit RBI sets, banks ask for a letter of credit or a guarantee from the supplier's bank. - The goods should arrive, and the Bill of Entry reach the bank, within the period the rules set. - If the goods never come, the advance should be refunded and reported against the original payment. #### Documents for an advance The bank needs the proforma invoice or contract, a request letter and [Form A1](https://fxlayerhq.com/insights/form-a1-vs-form-a2). The proforma should name the goods, quantity, value, delivery terms and expected shipment date, because the bank will compare it later with the [Bill of Entry](https://fxlayerhq.com/insights/what-is-idpms). #### Limits and security Advances up to the limit RBI sets can generally be paid without a guarantee. Above it, the bank will usually ask for an unconditional, irrevocable standby letter of credit or a guarantee from an international bank of repute, unless the bank is satisfied with the supplier's track record under its own policy. #### Closing the advance When the goods arrive, give the bank the Bill of Entry number, date and port code, and ask it to link the Bill of Entry to the advance in IDPMS. If the advance covered part of the invoice, the balance payment is made under [S0102](https://fxlayerhq.com/purpose-codes/s0102) and linked to the same Bill of Entry. #### When the goods do not come If the supplier cannot ship, ask for a refund of the advance through the banking channel. The refund closes the original remittance. If a refund is not possible, the bank will need documents explaining why before it can close the entry. FxLayer records the advance against its proforma, counts the days the advance has been open and moves it onto the Bill of Entry when the goods arrive, so the settlement letter is ready the same day. #### Questions **Can an advance be matched straight to a commercial invoice?** The advance is paid against the proforma, and the proforma is then linked to the commercial invoice and Bill of Entry. FxLayer keeps that chain so the bank sees one continuous trail. **Is a Bill of Entry needed for goods imported by courier?** Courier imports are cleared on a courier Bill of Entry, which serves as the evidence of import for the bank. #### 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 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. ### The hidden cost in every foreign payment: the bank's spread By CA Abhay Jaiswal · Updated 2026-10-14 · Source: https://fxlayerhq.com/insights/bank-fx-spreads Expert opinion · FX **Short answer.** The FX spread is the gap between the rate your bank applies and the mid-market rate at that moment. On large import or export payments it usually costs more than the bank charges shown on the advice. Measure it on each payment, compare quotes from your AD banks before booking, and record the booked rate so the remittance can be checked. Bank charges appear on the advice. The bigger cost, the gap between the market rate and the rate you were given, usually does not. #### Key points - The spread is the difference between the rate you get and the mid-market rate at the time. - On large payments, a few paise per dollar adds up to more than the bank charges. - Comparing quotes from your AD banks for each payment is the simplest way to reduce it. - A booked deal fixes the rate for the request; record it so the remittance can be checked. - Money that stays in the same currency, through an EEFC or PCFC account, is not converted and carries no spread. #### How the spread works Banks quote a buying and a selling rate around the interbank market rate. The card rate for small transactions carries a wide margin; larger customers can ask the dealing desk for a quote closer to the market. The difference between the rate applied and the mid-market rate at the time is the spread, and it is a real cost of the payment. #### Measuring it Compare the rate on the bank advice with a reliable mid-market rate for the same time. Express the difference as a percentage of the amount converted, and track it by bank and by month. #### A worked example Take a payment of USD 100,000 when the mid-market rate is ₹88.00. At a card rate 0.85% away from the mid, the conversion costs about ₹74,800 more than at the mid. A negotiated margin of 0.35% costs about ₹30,800, and a dealing-desk quote 0.15% from the mid about ₹13,200. The bank charges on the advice, often a few thousand rupees, are the smaller part of the bill. The same arithmetic works in the other direction for an exporter: the bank buys your dollars below the mid, and every paisa of that gap is income you do not receive. #### Forward contracts and foreign currency accounts A forward contract fixes the rate today for a payment or receipt on a later date. It does not remove the spread, which is built into the forward rate, but it removes the risk of the rate moving before the money moves. Quotes for forwards can be compared across banks in the same way as spot quotes. An exporter who holds foreign currency in an EEFC account, or draws packing credit in foreign currency, can pay a foreign supplier in the same currency without converting at all. With no conversion there is no spread, and the forward contract or conversion rate on the bank request reads "not applicable". #### Reducing it - Ask each of your [AD banks](https://fxlayerhq.com/insights/role-of-the-ad-bank) for a quote on larger payments, and book with the best. - Club payments to the same supplier where the terms allow. - Agree a margin over the market rate with your bank instead of accepting the card rate. - Keep a history of rates booked to support the negotiation. FxLayer's FX board prices each of your banks against the market rate, books the deal on the payment request and keeps a history of every booked rate. #### Questions **Is the spread shown on the bank advice?** Usually not. The advice shows the rate applied and the charges. The spread has to be worked out against the market rate at the time of the deal. **What spread is reasonable?** There is no published standard. It depends on the amount, the currency pair and your relationship with the bank. The fair test is a comparison: ask your AD banks for a quote on the same payment at the same time, and check the rate applied against the mid-market rate. **Does a forward contract cost more than a spot deal?** A forward rate is the spot rate adjusted for the interest rate difference between the two currencies, plus the bank's margin. Compare forward quotes across banks for the same date, as you would spot quotes. #### Sources - [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. ### eBRC and FIRC: what they prove and who issues them By CA Prachi Goel · Updated 2026-10-14 · Source: https://fxlayerhq.com/insights/ebrc-and-firc Expert opinion · Exports **Short answer.** A FIRC or FIRA is the bank's certificate that a foreign remittance reached your account; an eBRC is the electronic Bank Realisation Certificate, generated through DGFT's system from the bank's realisation data, confirming the money was realised against a specific export. GST refunds and export incentives usually ask for the eBRC; the FIRC proves only that money arrived. Exporters are asked for proof of realisation for GST refunds, export incentives and audits. Two documents answer that question, and they are not interchangeable. #### Key points - A FIRC or FIRA confirms that a foreign remittance was received in your bank account. - An eBRC confirms that the remittance has been realised against a specific export. - eBRCs are generated through DGFT's system from the bank's realisation data. - Service exporters without a Shipping Bill rely on the bank's certificate and, where available, an eBRC raised for the service. - An exporter can ask DGFT for eBRCs itself, on the portal, in one bulk-upload file or through DGFT's eBRC API, once the bank has reported the inward remittance. #### FIRC and FIRA A Foreign Inward Remittance Certificate (FIRC), or the advice banks now issue in its place (FIRA), confirms that money was received from abroad: the remitter, amount, currency, date and [purpose code](https://fxlayerhq.com/insights/rbi-purpose-codes). It proves receipt, not that the receipt was matched to a particular export. #### eBRC The electronic Bank Realisation Certificate is generated through [DGFT](https://www.dgft.gov.in)'s eBRC system once the bank has realised the export proceeds. It links the realisation to the [Shipping Bill](https://fxlayerhq.com/insights/what-is-edpms) or invoice and is the document used for export incentive claims, GST refunds on zero-rated supplies and audits. #### How an eBRC is made Each inward remittance the bank receives for an exporter is reported to DGFT's eBRC system as an inward remittance message (IRM), carrying the IEC, the amount, the currency, the date and the purpose code. The eBRC is generated when that IRM is tied to the export it pays for: a Shipping Bill for goods, or an invoice for services. Banks generate eBRCs for the exports they realise; under DGFT Trade Notice 12/2024-25 of 14 August 2024 an exporter can also ask for them itself. There are three ways to do that. On the DGFT portal, under Services › eBRC, an exporter sees the IRMs reported for its IEC, links each one to its Shipping Bill or invoice and generates the eBRC. Many lines at once go in DGFT's [bulk-upload file](https://fxlayerhq.com/insights/generate-ebrc-on-dgft). An exporter with a steady flow of receipts can instead use DGFT's eBRC API with its own credential, generated on the same page by the IEC's primary user, so that its software sends the requests and reads back the eBRC numbers. #### eBRC for services A services export has no Shipping Bill, so the eBRC is raised against the export invoice and the IRM that pays it. From 1 October 2026 those invoices also go on the monthly Export Declaration Form to the [AD bank](https://fxlayerhq.com/insights/role-of-the-ad-bank), which gives each declaration an EDF number in EDPMS; quoting the invoice number on the payment makes both the eBRC and the EDPMS closure straightforward. Money that comes in through a payment platform authorised by RBI as a cross-border payment aggregator arrives with an e-FIRA instead of a bank FIRA. Keep it with the invoice: it is the proof of receipt for that payment, in the same way a bank FIRA is. #### Keeping the two in step An eBRC will not appear until the bank has matched the remittance to the export. If a remittance arrives without Shipping Bill references, tell the bank which bills it settles. FxLayer records the FIRC and eBRC numbers on each Shipping Bill and shows which realised exports are still missing their eBRC. #### Questions **Is a FIRC enough for a GST refund?** For exports of goods the refund generally follows the Shipping Bill and realisation data. For services, the bank's certificate of realisation or an eBRC is commonly used. Check the current GST requirements. **Can I generate an eBRC myself?** Yes. Once the bank has reported the inward remittance to DGFT, the exporter can link it to the Shipping Bill or invoice on the DGFT portal under Services › eBRC, upload many at once in DGFT's bulk-upload file, or send the requests through DGFT's eBRC API with its own credential. **Where do I find an eBRC once it is issued?** On the DGFT portal under Services › eBRC, against the IEC, where it can be viewed and downloaded and its use for export benefits is shown. #### Sources - [Directorate General of Foreign Trade (eBRC)](https://www.dgft.gov.in) - [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) 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. ### EDPMS entry not closed: the usual reasons, and what the bank needs to close it By CA Abhay Jaiswal · Updated 2026-10-15 · Source: https://fxlayerhq.com/insights/edpms-entry-not-closed Expert opinion · Exports **Short answer.** An EDPMS entry stays open until your AD bank reports realisation against that Shipping Bill. When the money has arrived and the entry is still open, the cause is usually a remittance the bank never linked to the bill, a Shipping Bill filed under another bank's AD code, a short receipt without an approved reduction, or an export advance not adjusted. Each closes with a request letter and particular documents. The buyer paid, the bank issued a FIRA, and months later the bank still writes about the same Shipping Bill. The entry is open because something on the bank's side does not yet tie the money to the bill. Here is how to find what, and what to send. #### Key points - Only the AD bank closes an EDPMS entry, by reporting realisation, an approved reduction, a write-off or another outcome against the Shipping Bill. - Start from the bank's outstanding list for your IEC and compare it, bill by bill, with your own register. - Most entries that stay open after payment are a receipt not linked to the bill, the wrong AD code, a short receipt or an unadjusted advance. - Under RBI's circular of 1 October 2025, banks may close entries of up to ₹10 lakh per bill on your declaration, sent quarterly in one letter. - Anything that will not be paid in time needs an extension or a write-off request before the due date, not after it. #### Start with the bank's list You cannot see [EDPMS](https://fxlayerhq.com/insights/what-is-edpms) yourself, so begin with the list of outstanding Shipping Bills the [AD bank](https://fxlayerhq.com/insights/role-of-the-ad-bank) holds for your IEC. Most banks send it on request or show it on their trade portal. Put it beside your own register and compare each bill: number, date and port, invoice value and currency, what you have received against it and the reference of each receipt. Every bill the bank shows as open falls into one of two groups. Either the money has not arrived, and the task is to chase the buyer or ask for more time, or it has arrived and the bank has not been given what it needs to report it. The second group is the one this guide is about, and it is usually the larger. #### The usual reasons, and what to send | What happened | What the bank needs | |---|---| | **The receipt was never linked to the bill.** The buyer paid without quoting the Shipping Bill or invoice, so the bank credited the money and parked it. | A letter listing each receipt (the bank's reference, date, amount and currency) and the Shipping Bills it settles, with the amount against each, and the invoices. | | **The Shipping Bill names another AD code.** The entry sits with the bank named on the bill, not the bank that received the money. | A request to the bank named on the Shipping Bill to transfer the entry to the bank that realised it, with the bill and the receipt details. Ask both banks what each wants. | | **Less arrived than was invoiced.** A discount, a quality claim or charges deducted abroad. | A request to reduce the invoice value, with the credit note, the buyer's correspondence or the foreign bank's charges advice. Small differences are often accepted on a declaration. | | **An [export advance](https://fxlayerhq.com/insights/export-realisation-timelines) was never adjusted.** The buyer paid in advance ([purpose code](https://fxlayerhq.com/insights/rbi-purpose-codes) [P0103](https://fxlayerhq.com/purpose-codes/p0103)) and the advance was not set against the bill after shipment. | A letter asking the bank to adjust the advance, quoting its reference, against the Shipping Bill. | | **A third party paid, or the currency differs** from the invoice. | An explanation with the buyer's letter or the agreement that names the payer, for the bank to accept under its policy. | | **The receivable was set off** against a payable to the same overseas party. | The bank's approval of the set-off, with the Shipping Bill and the Bill of Entry or invoice on the other side. | | **The goods came back** or the shipment was cancelled. | The Bill of Entry for the re-import, or the customs cancellation, so the bank can close the entry without a realisation. | | **The particulars do not match:** a mistyped bill number, date or port. | A correction request with a copy of the Shipping Bill. | #### The ₹10 lakh declaration route RBI's circular of 1 October 2025 on reconciling EDPMS and IDPMS entries lets AD banks close entries of up to ₹10 lakh per Shipping Bill on the exporter's declaration that the amount has been realised, without the usual documents. A reduction in the value of such a bill can be accepted on a declaration too, and the declarations may be sent once a quarter, covering many bills in one letter, so the bank can close them in bulk. The same circular told banks not to levy penal charges for delays. If you have many small bills open, ask your bank whether it takes the quarterly declaration and in what format. It is the quickest way to clear a long tail of entries that were paid long ago. #### Writing the request One letter per bank works best. Table every Shipping Bill it covers with the three references a bank places a record by: the Shipping Bill (number, date, port), the bank's reference for each receipt, and your own invoice number, then the invoice value, the amount realised, any difference and its reason. Enclose what the table above asks for, and keep the bank's acknowledgement. Send it as soon as a receipt arrives, not when the bank writes. A receipt the bank has to investigate months later is far harder to place than one it can link the week it arrives. #### When the money will not come in time From 1 October 2026 export proceeds are due within nine months of the date of export, twelve when invoiced in rupees. If the buyer will pay later, ask the bank for an extension before the due date, with reasons and evidence of your follow-up. If part will never be paid, ask about a write-off within the limits RBI allows, and expect to give up any export incentive claimed on the unrealised part. Entries left unexplained past their date lead to bank follow-up and, if they persist, to the caution list, after which new shipments need an advance or a letter of credit. FxLayer's EDPMS / IDPMS check reads the bank's outstanding list, sorts each bill into close at the bank, follow up the money, not in your records and not on the bank's list, and writes the closure, transfer, extension and declaration letters from the records. #### Questions **The buyer paid months ago. Why is the Shipping Bill still open?** Usually because the bank never linked the receipt to the bill: the payment did not quote the Shipping Bill or invoice. Send the bank the receipt's reference and the bills it settles. The other common causes are a Shipping Bill filed under another bank's AD code and a short receipt with no approved reduction. **Can I close an EDPMS entry myself?** No. Only the AD bank closes it, by reporting the realisation or an approved reduction, write-off or other outcome. Your part is to give the bank the documents or the declaration it needs. **What is the ₹10 lakh rule?** Under RBI's circular of 1 October 2025, banks may close EDPMS entries of up to ₹10 lakh per Shipping Bill on the exporter's declaration that the money was realised, accept a reduction in value on a declaration, and take the declarations quarterly in one letter. **Will open entries stop my next shipment?** Not at once, but entries left open and unexplained past their due date lead to bank follow-up and can put the exporter on RBI's caution list, after which banks handle new shipments only against an advance or a letter of credit. #### 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 A.P. (DIR Series) Circular No. 12 of 1 October 2025: EDPMS and IDPMS entries up to ₹10 lakh reconciled and closed on the exporter's or importer's declaration](https://website.rbi.org.in/documents/d/rbi/exportdataprocessingmonitoringsystem) - [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. ### EDPMS and IDPMS software: a checklist for exporters and importers By CA Abhay Jaiswal · Updated 2026-10-15 · Source: https://fxlayerhq.com/insights/edpms-idpms-software Expert opinion · Banking **Short answer.** Good EDPMS and IDPMS software reads the bank's outstanding list and your customs documents, matches every remittance to its Shipping Bill or Bill of Entry (part payments, advances and several bills per payment included), counts down to each due date, and writes the closure, extension and declaration letters the bank needs, with an audit trail. Check how it handles purpose codes, several banks and your ERP. A spreadsheet tracks a dozen Shipping Bills well enough. It stops working when one payment settles five bills, an advance waits for goods, two banks hold your entries and the bank's list disagrees with yours. That is where software earns its place, if it does the right things. #### Key points - Only the AD bank closes EDPMS and IDPMS entries; the software's job is to know what is open, why, and what the bank needs. - It should compare the bank's outstanding list with your records, not only keep your own register. - Matching has to handle many-to-many payments, advances, set-offs, write-offs and short receipts. - The output that matters is the letter to the bank, with the references the bank needs. - Ask where the data is kept, who can change it, and whether you can take all of it out. #### What the job is [EDPMS](https://fxlayerhq.com/insights/what-is-edpms) and [IDPMS](https://fxlayerhq.com/insights/what-is-idpms) are RBI's systems, updated by your [AD bank](https://fxlayerhq.com/insights/role-of-the-ad-bank): one holds every Shipping Bill until the export proceeds are realised, the other every import payment and Bill of Entry until the two are matched. You do not log in to either. Your side of the work is to know which entries are open at the bank, why each is open, and to give the bank what it needs to close it before the due date. Software for this is a reconciliation and correspondence tool, built around the bank's view, not only yours. #### The checklist | What it should do | Why it matters | Ask | |---|---|---| | Read the bank's outstanding list | The bank's list is what RBI sees; your register is not | Does it take the bank's EDPMS and IDPMS files, or fetch them through the bank's API, and show where they differ from my records? | | Hold the customs documents | Shipping Bills and Bills of Entry are what the entries are keyed by | Can it import them in bulk, with port codes and AD codes, from customs data or my ERP? | | Match money to documents | One payment often settles several bills, and one bill several payments | Does it match part payments, advances ([P0103](https://fxlayerhq.com/purpose-codes/p0103), [S0101](https://fxlayerhq.com/purpose-codes/s0101)) and set-offs, and keep the remainder open? | | Count the due dates | Exports from 1 October 2026: nine months, twelve in rupees; imports normally six months from shipment | Does it use calendar months, record bank [extensions](https://fxlayerhq.com/insights/export-realisation-timelines) and warn me before the date? | | Write the bank letters | The letter is what closes the entry | Does it draft closure, AD-code transfer, reduction, extension and write-off requests, and the quarterly declaration for bills up to ₹10 lakh? | | Check purpose codes and forms | A wrong code or a missing Form A1 / A2 holds the payment | Is the purpose code chosen from RBI's list, never typed, and does it prepare Form A1, Form A2 and the Form 145 / 146 worksheet where they apply? | | Cover several banks and entities | Entries sit with the bank named on each document | Can one workspace hold several AD banks, accounts and, where needed, IECs? | | Follow the eBRC | Incentives and refunds wait on it | Does it show which realised exports still lack an eBRC, and help generate them on [DGFT](https://www.dgft.gov.in)? | | Connect to the ERP | Typing invoices twice causes the mismatches | Does it read invoices and receipts from my accounting system? | | Keep an audit trail | Banks and auditors ask who did what, and when | Is every change logged with the user, are roles separate, where is the data hosted, and can I export all of it? | #### Warning signs - It matches one payment to one bill only, so part payments and advances live in notes. - Due dates are counted in days rather than calendar months, or ignore the rupee-invoice rule. - Purpose codes are free text. - Letters are typed outside it, so the reference numbers on them drift from the records. - It never looks at the bank's list, so it cannot tell you why the bank thinks a bill is open. #### An ERP module or a dedicated tool An ERP keeps invoices and receipts well, but rarely the bank's view: the outstanding lists, AD codes, purpose codes, Form A1 / A2, extensions and the letters. A dedicated tool sits beside the ERP, reads from it, and does the regulatory side. Whichever you choose, run it on a month of real data, including the awkward cases, before you commit. FxLayer is built for this side of the work: it reads the bank's outstanding list (or fetches it where the bank's API offers it), matches payments to documents across banks, counts each due date, prepares the bank letters and Form A1 / A2, tracks eBRCs, connects to the accounting system and logs every change. It is free to start, so the check above can be run on your own data. #### Questions **Does RBI provide EDPMS software for exporters?** No. EDPMS and IDPMS are RBI's systems, updated by the AD banks. Exporters and importers do not log in to them; the bank shares the outstanding list for your IEC, and many banks show it on their trade portals. **Can my ERP do this?** Your ERP holds the invoices and receipts, which the work depends on, but usually not the bank's outstanding lists, AD codes, purpose codes, extensions and letters. Most companies keep the ERP as the source and add a tool for the regulatory side. **What should I test before buying?** A month of real data with a part payment, an advance, a short receipt and a bill under another bank's AD code. Check the result against the bank's list and read the letters it produces. #### 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 A.P. (DIR Series) Circular No. 12 of 1 October 2025: EDPMS and IDPMS entries up to ₹10 lakh reconciled and closed on the exporter's or importer's declaration](https://website.rbi.org.in/documents/d/rbi/exportdataprocessingmonitoringsystem) - [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. ### Export realisation period in 2026: nine months, extensions and write-offs By CA Abhay Jaiswal · Updated 2026-10-06 · Source: https://fxlayerhq.com/insights/export-realisation-timelines Expert opinion · Exports **Short answer.** From 1 October 2026, an Indian exporter must realise and repatriate the full export value within nine months of the date of export, or twelve months when the invoice is raised or settled in rupees, under the FEMA Export and Import Regulations, 2026 as amended on 22 September 2026 (the text notified in January had said fifteen months). Ask the AD bank for any extension before the period ends. The day the goods leave, a clock starts on the export proceeds. Knowing where every Shipping Bill stands on that clock is the difference between a routine extension and a caution-list letter. #### Key points - Export value should generally be realised within nine months of the date of export. - Ask your AD bank for an extension before the period ends, with reasons and evidence. - Write-offs are allowed within limits tied to the previous year's realisations, with incentives surrendered. - Goods should normally be shipped within one year of receiving an export advance. #### The realisation period 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), as amended on 22 September 2026, the full value of goods, software and services exported should be realised and repatriated within nine months of the date of export, or twelve months when the invoice is raised or settled in Indian rupees. The regulations as first notified in January 2026 had said fifteen months; the amendment brought it to nine before they came into force on 1 October 2026. RBI has varied the period for particular exporters and situations, so confirm the current position with your [AD bank](https://fxlayerhq.com/insights/role-of-the-ad-bank). #### Asking for an extension If the buyer will pay later than the period allows, ask the AD bank for an extension before the due date. The request should explain why payment is delayed, show that you have followed up with the buyer and confirm the amount still expected. Banks can grant extensions within the limits RBI delegates to them, usually in steps, and may ask for a declaration on your total outstanding export bills. #### Reductions and write-offs When the buyer pays less than the invoice, because of quality claims, discounts or charges, the bank can approve a reduction in invoice value with supporting documents. When part of the value will never be received, it can be written off: by the exporter itself within a small percentage of the previous year's realisations, or by the AD bank within a higher limit, subject to conditions such as surrendering export incentives on the unrealised part. #### Export advances An advance received from a buyer (purpose [P0103](https://fxlayerhq.com/purpose-codes/p0103)) creates an obligation to ship. Goods should normally be shipped within one year of receiving the advance, and the advance is then adjusted against the [Shipping Bill](https://fxlayerhq.com/insights/what-is-edpms). If shipment is not possible, the advance is refunded to the buyer through the bank. #### Keeping ahead of the clock FxLayer shows the days left on every Shipping Bill and export advance, groups them by due date and prepares the extension request and the closure letter from the record. #### Questions **Does the realisation period start on the invoice date?** No. It runs from the date of export, which is generally the Shipping Bill date. **What if the buyer goes insolvent?** Document the insolvency and any recovery steps, claim on export credit insurance if you hold it, and ask the bank about write-off. Keep the bank informed before the due date. #### 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. ### The FLA return: who must file, what it asks for and how to file it on FLAIR By CA Prachi Goel · Updated 2026-10-07 · Source: https://fxlayerhq.com/insights/fla-return Expert opinion · FEMA reporting **Short answer.** Every Indian company, LLP or other entity that has received foreign direct investment or made overseas direct investment, and still holds it on 31 March, files the Annual Return on Foreign Liabilities and Assets (FLA return) with RBI on the FLAIR portal by 15 July. For FY 2025-26 RBI extended the date to 31 July 2026. A return filed on unaudited figures is revised on the audited accounts by 30 September. The FLA return is a once-a-year census of what an Indian entity owes to and holds in the rest of the world. It costs nothing to file, needs no approval and is read only in aggregate, yet it is one of the most commonly missed FEMA filings: it applies every year that FDI or ODI stays on the balance sheet, not only the year the money came in. #### Key points - Any entity holding FDI received or ODI made, in any year, on its 31 March balance sheet files, even with no new investment that year. - The return is filed online on RBI's FLAIR portal; SEBI-registered AIFs use RBI's Excel format by email instead. - FY 2025-26: due 31 July 2026 (extended from 15 July); queries go to flareturn@rbi.org.in, which replaced surveyfla@rbi.org.in. - Unaudited figures are acceptable by the due date; the revised return on audited accounts goes in by 30 September. - Unlisted equity is valued at own funds at book value (net worth × holding %); listed equity at the 31 March price; debt at nominal value. #### What the FLA return is The Annual Return on Foreign Liabilities and Assets is a statistical return the Reserve Bank collects under the Foreign Exchange Management Act, 1999. It is the source of India's international investment position and of the direct investment figures RBI publishes each year. RBI's Master Direction on Reporting under FEMA sets out the return; the entity files it itself on the FLAIR portal (Foreign Liabilities and Assets Information Reporting), which replaced the old Excel form sent by email. It is not an approval and carries no fee. What makes it matter is that not filing it, or filing it late, is a contravention of FEMA: the entity has to regularise the delay with RBI, through a late submission fee where RBI allows one or through compounding, and an entity with a gap in its FLA history finds later FEMA filings questioned. #### Who must file, and who need not The return is filed by every resident entity that has received foreign direct investment or made overseas direct investment in the reporting year or in any earlier year, and holds it on 31 March: companies (identified by CIN), limited liability partnerships (LLPIN), and other entities such as partnership firms, public-private partnerships and special purpose vehicles registered on FLAIR on an identifier RBI assigns. SEBI-registered Alternative Investment Funds report in RBI's Excel format by email rather than through the FLAIR form. There is no return where nothing is outstanding on 31 March: an entity that never had FDI or ODI, one whose foreign investors exited before that date, one where foreign holdings are only on a non-repatriable basis, or one with only share application money pending allotment. A new company that received its first FDI on 2 April files from the following year. #### The due dates for FY 2025-26 The return is due by 15 July each year for the position on 31 March. For the year ended 31 March 2026, RBI extended the due date on FLAIR to **31 July 2026** and moved its FLA correspondence to **flareturn@rbi.org.in**; the earlier address, surveyfla@rbi.org.in, is discontinued. An entity whose accounts are not audited by the due date files on its unaudited (provisional) figures and then files a revised return on the audited accounts by 30 September. Revising a year already filed means asking RBI to re-open it on FLAIR first. Figures are always for 31 March: an entity with another accounting year reports the 31 March position on an internal assessment basis. #### What the form asks for, block by block Every amount is in rupees lakh, for both the previous and the latest 31 March. - **Section I, identification:** name, address, PAN, CIN or LLPIN, contact person, account closing date, the NIC 2008 code of the business, any change of name during the year, whether listed (with the 31 March share price), and whether the entity is a subsidiary or associate of a foreign entity, a PPP or an SPV. - **Section II, financial details:** paid-up capital by class (Block 1A) with the non-resident holdings by type of investor and their percentage of equity; profit and loss, dividend and retained profit (1B); reserves and net worth (1C); and, where a single foreign investor holds more than half, sales, exports, purchases and imports (1D). - **Section III, foreign liabilities:** each direct investor holding 10% or more, one by one with its country (Block 2A); investors under 10%, one row per country (2B); and portfolio investment (2C). For each, equity capital and "other capital": trade credit, loans, debentures, non-participating preference shares and other payables and receivables with that investor. - **Section IV, foreign assets:** each enterprise abroad held 10% or more, with its capital, reserves, net worth and the 31 March exchange rate (Block 3A) and the investment in it (4A); holdings under 10% by country (4B); portfolio investment abroad (Block 5); and, for enterprises held more than half, their sales, exports, purchases and imports in foreign currency (Section IV-A, outward FATS). - **Section V, other investment:** trade credit, loans, currency and deposits and other receivables and payables with unrelated parties abroad (Block 6). FLAIR then shows a variation report against the previous year. #### How the figures are valued Equity is reported at market value. For a listed entity that is the share price on 31 March. For an unlisted one, which is most filers, it is the **own funds at book value** (OFBV) method: the entity's net worth, paid-up equity plus reserves and surplus including the profit and loss balance, multiplied by the investor's percentage holding. An Indian company with a net worth of ₹240 lakh that is 74% held by its foreign parent reports equity liabilities of ₹177.60 lakh to that parent. The same method values an unlisted enterprise abroad: its net worth in its own currency, times the share held, at the 31 March exchange rate. Debt securities are at market value; loans, trade credit and other debt at nominal value. Domestic balances do not count even when they are in foreign currency: an EEFC account or a foreign-currency loan from an Indian bank is not a foreign liability or asset. #### Common mistakes - Stopping after the first year: the return is due every year the investment is held. - Percentages that do not add up: the holdings placed in Blocks 2A, 2B and 2C must equal the non-resident share of equity in item 3.0. - Reporting the ultimate parent's country instead of the immediate investor's. - Equity at face value instead of OFBV, which FLAIR then contradicts in its own valuation. - Leaving trade with the foreign parent or subsidiary in trade credit with unrelated parties, when it belongs in that investor's or enterprise's "other capital". - Amounts in rupees instead of lakh, and a forgotten revision after filing on unaudited figures. #### Preparing it from your records Most of the return comes from the balance sheet, the shareholding register and the accounts of the enterprises abroad. The part that takes time is the positions with foreign parties on 31 March: what each overseas customer owed, what was due to each supplier abroad, the advances received and paid, split between the group's own companies and everyone else. FxLayer's FLA return page (Compliance › Reports & registers) works through the form in FLAIR's order. It decides whether the return is due, starts each year from the last one, values equity at OFBV, and reads the open [Shipping Bills](https://fxlayerhq.com/insights/what-is-edpms), Bills of Entry, service invoices and unapplied remittances on each 31 March at that day's rate, putting the trade with the foreign parent or subsidiary in its other capital and the rest in trade credit. It runs FLAIR's consistency checks, gives the entry sheet in FLAIR's order to key in, and keeps the filing with its acknowledgement. The due date and the revision date sit on the compliance calendar. RBI publishes no API for FLAIR, so the return itself is submitted on the portal. #### Questions **Is the FLA return required if no new foreign investment came in during the year?** Yes. It is required every year that FDI received or ODI made in any year is still outstanding on 31 March. **What is the due date of the FLA return for FY 2025-26?** 31 July 2026. The usual date is 15 July; RBI extended it for the year ended 31 March 2026. A return filed on unaudited figures is revised on the audited accounts by 30 September 2026. **Can the FLA return be filed with unaudited accounts?** Yes. File on the unaudited figures by the due date, then file the revised return once the accounts are audited, by 30 September. **How is unlisted equity valued in the FLA return?** By the own funds at book value method: net worth (paid-up equity plus reserves and surplus) multiplied by the percentage held. **Do LLPs and partnership firms file the FLA return?** Yes, when they hold foreign direct investment or overseas investment on 31 March. LLPs file with their LLPIN; other entities register on FLAIR with the identifier RBI assigns. **Where do I send FLA questions to RBI?** To flareturn@rbi.org.in. The earlier address, surveyfla@rbi.org.in, is discontinued. **Is there an API to submit the FLA return?** No. RBI publishes no API for FLAIR: the entity's registered user files the return on the portal, which is why FxLayer prepares, checks and records it rather than submitting it. #### Sources - [RBI Master Direction: Reporting under Foreign Exchange Management Act, 1999 (updated 1 October 2026), including the Annual Return on Foreign Liabilities and Assets](https://www.rbi.org.in/Scripts/BS_ViewMasDirections.aspx?id=10202) - [RBI FLAIR portal (Foreign Liabilities and Assets Information Reporting), where the FLA return is filed](https://flair.rbi.org.in) - [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. ### Form 145 and Form 146: which part applies to your foreign payment By CA Prachi Goel · Updated 2026-10-06 · Source: https://fxlayerhq.com/insights/form-145-and-form-146 Expert opinion · Cross-border tax **Short answer.** Form 145 (formerly Form 15CA) is the declaration filed on the income-tax portal before paying a non-resident, under Rule 220 of the Income-tax Rules, 2026. Form 146 (formerly Form 15CB) is a chartered accountant's certificate, needed for Part C: taxable payments above ₹5 lakh in the year without a tax officer's certificate. Payments on the specified list, such as imports of goods, need neither. Before your bank sends money abroad for anything other than the purchase of goods, it will usually ask for an acknowledgement from the income-tax portal. That acknowledgement is Form 145, and for larger taxable payments it rests on a chartered accountant's certificate in Form 146. #### Key points - Form 145 replaces Form 15CA and Form 146 replaces Form 15CB under the Income-tax Act, 2025. - Payments on the specified list, which includes imports of goods, need neither form. - The part of Form 145 depends on whether the payment is taxable, its size and whether a tax officer's certificate exists. - Form 146 is needed for Part C and is filed before Form 145, because its acknowledgement is quoted there. #### What the two forms are Any person making a payment to a non-resident has to consider whether tax should be withheld in India. Form 145 is the remitter's declaration of that payment, filed online on the income-tax e-filing portal before the money leaves. Form 146 is a certificate from a chartered accountant on the taxability of the payment, the applicable rate under the Act or a tax [treaty](https://fxlayerhq.com/insights/tax-treaty-benefits-trc), and the tax withheld. From 1 April 2026 the Income-tax Act, 2025 renumbered the forms: Form 15CA became Form 145 and Form 15CB became Form 146, with the specified list of exempt purposes moving to [Rule 220](https://www.incometaxindia.gov.in/documents/d/guest/form-145-faqs). Many banks and accountants still use the old names, so expect to see both. #### Which payments need no form Payments whose purpose is on the specified list need neither Form 145 nor Form 146. The list includes imports of goods ([purpose codes](https://fxlayerhq.com/insights/rbi-purpose-codes) [S0101](https://fxlayerhq.com/purpose-codes/s0101) to [S0104](https://fxlayerhq.com/purpose-codes/s0104)), and other purposes such as certain travel, education and overseas office expenses. This is why an ordinary import payment goes to the bank with a request letter and [Form A1](https://fxlayerhq.com/insights/form-a1-vs-form-a2), but no tax form. #### Choosing the part of Form 145 - **Part A**: the payment is chargeable to tax and the total paid to the payee in the financial year does not exceed ₹5 lakh. - **Part B**: the payment exceeds that limit and you hold an order or certificate from the tax officer for nil or lower deduction. - **[Part C](https://fxlayerhq.com/insights/form-145-part-c-or-part-d)**: the payment exceeds the limit and is chargeable to tax; a Form 146 certificate from a chartered accountant is required. - **Part D**: the payment is not chargeable to tax in India, for example because a tax treaty protects it and the payee has no permanent establishment in India. #### The order of filing For a Part C payment, the chartered accountant files Form 146 first and the remitter then files Form 145, quoting the Form 146 acknowledgement. The signed acknowledgement of Form 145 goes to the bank with the payment request and Form A2. Banks will not remit without it, so build the filing time into the payment timeline, especially near month end. #### Treaty papers make the difference Where a tax treaty lowers or removes the tax, the payee's tax residency certificate, the declaration in the prescribed form and a no-permanent-establishment declaration support the treaty rate. Without them the higher rate under the Act applies, and the payment may move from Part D to Part C. FxLayer works out whether a payment is taxable, the treaty position and the part of Form 145 before the request is raised, lays out every field of Form 145 and Form 146 in the portal's order and holds the payment request until the acknowledgements are recorded. #### Questions **Is Form 145 required for every foreign payment?** No. Payments on the specified list, which includes imports of goods, need no form. For other payments, the part depends on taxability and value. **Who files Form 146?** A chartered accountant, on the income-tax e-filing portal, after examining the contract and invoice. The remitter then files Form 145. **Can I pay first and file later?** No. The forms are filed before the remittance, and the bank asks for the Form 145 acknowledgement before it sends the money. **Does a GST payment under reverse charge replace Form 145?** No. GST under reverse charge is a separate obligation on the import of services. It does not change whether Form 145 is needed. #### Sources - [Income Tax Department: Form 145 FAQs](https://www.incometaxindia.gov.in/documents/d/guest/form-145-faqs) - [Income Tax Department: Form 146 FAQs](https://www.incometaxindia.gov.in/documents/d/guest/form-146-faqs) - [Income Tax Department of India](https://www.incometaxindia.gov.in) 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. ### Form 145 Part C or Part D? Worked examples by purpose code By CA Prachi Goel · Updated 2026-10-15 · Source: https://fxlayerhq.com/insights/form-145-part-c-or-part-d Expert opinion · Cross-border tax **Short answer.** Part C is for a payment chargeable to tax in India that takes the year's total to the payee above ₹5 lakh: a chartered accountant's Form 146 is filed first. Part D is for a payment not chargeable to tax in India, such as business income of a payee with no permanent establishment here, or fees a tax treaty protects. Payments on the specified list, such as imports of goods, need neither. The rules for choosing a part of Form 145 fit in four lines. Applying them to a real invoice is harder, because the answer turns on what the payment is for and who receives it. These examples work through the purpose codes that come up most. #### Key points - Three questions decide the part: is the purpose on the specified list, is the payment chargeable to tax in India, and what is the year's total to the payee. - Part C needs a chartered accountant's Form 146, filed before Form 145; Part D does not. - Consultancy and royalty are usually taxable: Part A within ₹5 lakh, Part C above it, unless a treaty protects the fee. - Advertising, freight and other business income of a payee with no permanent establishment in India are usually Part D. - For software and SaaS, the treaty papers decide: Part D with them, Part C without them. #### Three questions decide the part 1. **Is the purpose on the specified list** in [Rule 220](https://www.incometaxindia.gov.in/documents/d/guest/form-145-faqs)(3) of the Income-tax Rules, 2026? Then neither [Form 145](https://fxlayerhq.com/insights/form-145-and-form-146) nor Form 146 is needed. Imports of goods ([S0101](https://fxlayerhq.com/purpose-codes/s0101) to [S0104](https://fxlayerhq.com/purpose-codes/s0104)) are the common case. 1. **Is the payment chargeable to tax in India?** Under the Income-tax Act, 2025, read with the tax [treaty](https://fxlayerhq.com/insights/tax-treaty-benefits-trc) with the payee's country. If not, it is Part D. 1. **If it is chargeable, how much goes to this payee in the financial year?** Within ₹5 lakh in total, Part A. Above it, Part C with a chartered accountant's Form 146, or Part B if you hold the tax officer's certificate for nil or lower deduction. Where tax is withheld, the Act rate on fees for technical services and royalty is 20% plus surcharge and 4% cess (20.8% when there is no surcharge), or the treaty rate when the payee gives its tax residency certificate (TRC) and Form 41 (formerly Form 10F). The examples below use illustrative amounts. #### Consultancy: S1006 **₹3 lakh to a German firm for a market study**, the first payment to it this year. Consultancy fees are fees for technical services under the Act, and the India–Germany treaty taxes such fees without asking whether know-how passes to you. The payment is chargeable, and with the year's total within ₹5 lakh it is **Part A**, without Form 146. **The same study from a US firm, for ₹18 lakh.** The India–US treaty taxes such fees only when the service makes technical knowledge or skill available to you. A market study that hands over no know-how is the firm's business profits, taxable in India only through a permanent establishment. With its TRC, Form 41 and a no-permanent-establishment declaration, it is **Part D**. **₹18 lakh to a UK firm that trains your team and hands over its method.** The India–UK treaty taxes such fees when the service makes technical knowledge or skill available to you, which training and a handed-over method do. The payment is chargeable and above ₹5 lakh: **Part C**, with Form 146 certifying the rate, at the treaty rate if the payee gives its TRC and Form 41. **₹18 lakh to a consultancy in the United Arab Emirates** with no office or staff in India. The India–UAE treaty has no article on technical fees, so the fee is business profits, taxable in India only through a permanent establishment. With the payee's TRC, Form 41 and a no-permanent-establishment declaration, it is **Part D**. #### Software and SaaS: S0802 and S0807 **₹9 lakh a year for a SaaS subscription from a US provider.** The Act treats a licence to use software as royalty, but under a tax treaty it is not, following the Supreme Court in Engineering Analysis Centre of Excellence v CIT (2021), because no copyright passes to you. With the provider's TRC, Form 41 and a no-permanent-establishment declaration, nothing is withheld and the filing is **Part D**. Without those papers the Act applies, the payment is royalty and above ₹5 lakh, so it is **Part C**. #### Advertising, freight and other services: S1007, S0203, S1099 **₹40 lakh of online advertising bought from a platform's overseas entity ([S1007](https://fxlayerhq.com/purpose-codes/s1007)).** It is the platform's business income, taxable in India only through a permanent establishment, and the equalisation levy on online advertising ended on 1 April 2025. Without a permanent establishment it is **Part D**, usually with the payee's TRC, Form 41 and no-permanent-establishment declaration on file. **Freight to a foreign shipping line on an import ([S0203](https://fxlayerhq.com/purpose-codes/s0203)).** Freight paid to a foreign shipping company is outside the withholding section (CBDT Circular 723 of 1995, and the shipping article of the treaty): **Part D**. Check that the payee is the carrier or its agent; a freight forwarder's own charges are a different question. **A service with no code of its own ([S1099](https://fxlayerhq.com/purpose-codes/s1099))**, where the payee has no permanent establishment in India and the service is not technical: business income, **Part D**. If the service is in substance technical or consultancy, treat it as in the [S1006](https://fxlayerhq.com/purpose-codes/s1006) examples. #### Royalty: S0902 **₹25 lakh to a foreign company for the use of its trademark.** Royalty paid by a resident is taxable in India wherever the right is used. The payment is chargeable and above ₹5 lakh: **Part C** with Form 146, at the lower treaty rate if the payee gives its TRC and Form 41, or **Part B** if the tax officer has issued a certificate for a lower rate. #### Mistakes that change the part - **Splitting a payment** to stay within ₹5 lakh: the limit is the year's total to the payee, not each payment. - **Filing Part D without the papers**: a treaty position needs the TRC, Form 41 and, for business income, the no-permanent-establishment declaration, in hand before you file. - **Taking the [purpose code](https://fxlayerhq.com/insights/rbi-purpose-codes) as the answer**: the code points to the usual position, but the contract decides. Training that transfers know-how changes a business-income payment into a technical fee. - **Filing Form 145 before Form 146** for Part C: the CA's acknowledgement is quoted in Form 145. FxLayer works out the part from the purpose code, the payee's country and papers and the year's payments to the payee, shows where a chartered accountant has to decide, and holds the payment request until the Form 145 and Form 146 acknowledgements are attached. Every purpose code's page in the directory shows its usual position. #### Questions **Does Part D need Form 146?** No. Form 146 is required for Part C. For a large Part D payment some banks still ask for a chartered accountant's view in writing, so ask your bank before the payment date. **Is the ₹5 lakh limit per payment?** No. It is the total paid to that payee in the financial year. Once the year's payments to the payee cross ₹5 lakh, a chargeable payment moves from Part A to Part C. **What is Part B?** Part B is for a chargeable payment above ₹5 lakh where the tax officer has issued an order or certificate for nil or lower deduction. The certificate's details are entered in the form. **Who decides whether a payment is chargeable?** The remitter does, with its chartered accountant, who certifies the position in Form 146 for Part C. The purpose code is a starting point; the contract and the treaty decide. #### Sources - [Income Tax Department: Form 145 FAQs](https://www.incometaxindia.gov.in/documents/d/guest/form-145-faqs) - [Income Tax Department: Form 146 FAQs](https://www.incometaxindia.gov.in/documents/d/guest/form-146-faqs) - [Income Tax Department of India](https://www.incometaxindia.gov.in) 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. ### Form A1 or Form A2: which application does your bank need? By CA Abhay Jaiswal · Updated 2026-10-06 · Source: https://fxlayerhq.com/insights/form-a1-vs-form-a2 Expert opinion · Banking **Short answer.** Use Form A1 when the payment is for goods imported into India, and Form A2 for every other outward remittance, including services, royalties and the import leg of a merchanting trade. Both carry the purpose code, the beneficiary and bank details and your declarations; the purpose code also decides whether Form 145 and Form 146 are needed. Every outward payment starts with an application to your AD bank. Picking the wrong one is one of the most common reasons a payment request comes back. #### Key points - Form A1 is used for payments for imports of goods into India. - Form A2 is used for other outward remittances, including services and the import leg of a merchanting trade. - Both carry the purpose code, the beneficiary and bank details, and the remitter's declarations. - Some banks combine the two into one application; the purpose code still decides what else is needed. #### Form A1: imports of goods Form A1 is the application for a payment for goods imported, or to be imported, into India. It covers [advance payments](https://fxlayerhq.com/insights/advance-import-payments) against a proforma invoice and payments against a commercial invoice and Bill of Entry. The bank uses it to report the remittance in [IDPMS](https://fxlayerhq.com/insights/what-is-idpms) and to link it later to the Bill of Entry. Because imports of goods are on the specified list, no [Form 145](https://fxlayerhq.com/insights/form-145-and-form-146) or Form 146 is needed. #### Form A2: everything else Form A2 is the application for other outward remittances: payments for services, royalties and licence fees, subscriptions, overseas office expenses, the import leg of a merchanting trade, and remittances by individuals under the Liberalised Remittance Scheme. It records the [purpose code](https://fxlayerhq.com/insights/rbi-purpose-codes) and asks the remitter to declare that the payment complies with FEMA. Where the purpose is not on the specified list, the bank also needs the Form 145 acknowledgement, and for Part C the Form 146 certificate. #### What goes with each application - A request letter on your letterhead, instructing the bank to remit and to debit your account. - The invoice, and for goods the Bill of Entry or proforma; for services, the agreement or purchase order. - The beneficiary's bank details, including SWIFT code and, where the bank asks, an intermediary bank. - Instructions on who bears bank charges, and whether to use a booked forward contract or a rate agreed with the dealing desk. #### Getting it right the first time Choose the purpose code first; it decides the form, the tax papers and how the bank reports the payment. FxLayer picks the form from the purpose code, fills it from the transaction and the party master, and shows only what still needs to be answered. #### Questions **Can one Form A1 cover several invoices?** Yes, if they are from the same supplier and paid in one remittance. The request letter should list each invoice and Bill of Entry it covers. **Is Form A2 needed for a refund of an export advance?** Banks treat refunds of export advances as a separate purpose and usually ask for a request letter with the original remittance details. Check your bank's format. **Do I sign Form A1 and Form A2 by hand?** Many banks now accept digitally signed applications through their trade portals or by email from registered addresses. Check what your bank accepts. #### 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 notifications, including the A.P. (DIR Series) circulars to AD banks](https://www.rbi.org.in/Scripts/NotificationUser.aspx) - [Income Tax Department: Form 145 FAQs](https://www.incometaxindia.gov.in/documents/d/guest/form-145-faqs) 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. ### Paid by clients abroad: what a freelancer in India needs to know By CA Prachi Goel · Updated 2026-10-08 · Source: https://fxlayerhq.com/insights/freelancers-paid-from-abroad Expert opinion · Exports **Short answer.** A freelancer in India paid by clients abroad needs no IEC for services, and need not register under GST while turnover in the year, foreign clients included, stays within ₹20 lakh (₹10 lakh in four north-eastern states). Each payment comes in under the RBI purpose code for the work, with a FIRA from the bank or an e-FIRA from a payment platform, and is taxed as ordinary income. Developers, designers, writers, tutors and consultants in India increasingly work for clients abroad. The money arrives as a foreign remittance, so a few FEMA, GST and income-tax rules apply — fewer than most people fear, and none that need a company or an accountant to get started. #### Key points - No IEC is needed to be paid for services; you are known by your PAN. - GST registration is needed only once turnover in the year, foreign clients included, passes ₹20 lakh (₹10 lakh in Manipur, Mizoram, Nagaland and Tripura). - Not registered: send a plain invoice with your PAN and a line saying so — no GST, no LUT. - Every payment needs the purpose code for the work, and a FIRA or e-FIRA kept with the invoice. - Foreign income is taxed like any other: plan the advance tax instalments. #### No IEC for services The Import Export Code is [DGFT](https://www.dgft.gov.in)'s number for businesses that import or export goods. A person who only provides services needs one only to claim benefits under the Foreign Trade Policy. Your bank and the tax department know you by your PAN, and every paper in this guide carries it. #### GST: the threshold, and the invoice when you are below it Exports of services are zero-rated, but they still count towards your aggregate turnover. You must register once that turnover in a financial year passes ₹20 lakh, or ₹10 lakh in Manipur, Mizoram, Nagaland and Tripura (section 22 of the CGST Act). Below it, a supplier of services is exempt from registration even for supplies to clients outside the state or abroad, under Notification No. 10/2017-Integrated Tax. Once you pass the threshold, apply within 30 days. An unregistered freelancer cannot issue a tax invoice and does not need a Letter of Undertaking. Send a plain invoice instead, with your name and address as on your PAN, the PAN itself, the client's name, address and country, the service and its SAC code, the amount and currency, and a line that you are not registered under GST. Once registered, export invoices go under an LUT without IGST. #### The purpose code for your work Every payment from abroad carries an RBI [purpose code](https://fxlayerhq.com/insights/rbi-purpose-codes). For freelance work it is the code for the service: software and websites [P0802](https://fxlayerhq.com/purpose-codes/p0802), consulting [P1006](https://fxlayerhq.com/purpose-codes/p1006), digital marketing [P1007](https://fxlayerhq.com/purpose-codes/p1007), video and animation [P1101](https://fxlayerhq.com/purpose-codes/p1101), teaching [P1107](https://fxlayerhq.com/purpose-codes/p1107), accounting [P1005](https://fxlayerhq.com/purpose-codes/p1005), and [P1099](https://fxlayerhq.com/purpose-codes/p1099) for other services, which covers most design and writing. The [purpose code guide](https://fxlayerhq.com/insights/rbi-purpose-codes) has the rest. Do not let a client's payment be booked under a personal code such as gifts or family maintenance: it misstates your income. #### Bank or platform: FIRA and e-FIRA Paid straight into your bank account, savings or current, the bank asks for the purpose and issues a Foreign Inward Remittance Advice (FIRA) for each payment. Paid through a payment platform, the platform converts the money and pays you in rupees; if RBI has authorised it as a cross-border payment aggregator, it issues an e-FIRA, which serves the same purpose. A platform may handle up to ₹25 lakh in one payment for an export of services. Keep the invoice at its full amount. The platform's fee and the bank's charges are your expenses, not a smaller invoice. Keep each FIRA or e-FIRA with its invoice: it is your proof of a payment from abroad if GST, the bank or the tax department ever asks. #### The monthly EDF From 1 October 2026 exports of services are declared to the bank once a month on the [Export Declaration Form](https://fxlayerhq.com/insights/monthly-edf-for-services). RBI indicated on 7 October 2026 that individuals need not file it; its FAQs on the point are awaited. Until then, ask your bank and keep its answer in writing. #### Income tax Money from foreign clients is ordinary income from your profession or business and goes on your return with the rest. When the tax for the year will be ₹10,000 or more, pay it in advance instalments by 15 June, 15 September, 15 December and 15 March. If the client's country withheld tax, keep its certificate: you may be able to claim credit for it in India. Your chartered accountant can tell you whether the presumptive scheme for professionals suits you. FxLayer handles this from one workspace on your PAN: invoices without GST with the right wording, the purpose code chosen from a description of the work, receipts into the bank or through a platform with the FIRA or e-FIRA attached, the EDF if your bank wants it, a register of foreign income by month and client, and the advance tax dates on the calendar. #### Questions **Can I receive payments from abroad in my savings account?** Yes. A resident's savings account can receive payments for services from abroad; the bank asks for the purpose and issues the FIRA. Some banks prefer a current account once the payments are regular. **I am registered under GST. Do I charge GST to a client abroad?** Not when the service is an export: the client is abroad, the place of supply is outside India and you are paid in foreign exchange. Issue the invoice under a Letter of Undertaking without IGST. **Is a payout from a freelance marketplace a payment from abroad?** Yes. The marketplace collects from the client and pays you; it is still payment for a service to a client abroad. Use the purpose code for the work and keep the marketplace's statement with the FIRA or e-FIRA. **Do I need a chartered accountant to start?** No. Signing up, invoicing and recording payments need only your PAN. A chartered accountant helps with the tax return and with questions such as the presumptive scheme or a foreign tax credit. #### Sources - [CBIC: the CGST and IGST Acts and notifications, including section 22 of the CGST Act (registration threshold) and Notification No. 10/2017-Integrated Tax](https://cbic-gst.gov.in) - [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) - [Income Tax Department of India](https://www.incometaxindia.gov.in) 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. ### How to generate an eBRC on the DGFT portal, step by step By CA Abhay Jaiswal · Updated 2026-10-15 · Source: https://fxlayerhq.com/insights/generate-ebrc-on-dgft Expert opinion · Exports **Short answer.** To generate an eBRC yourself, sign in to the DGFT portal for your IEC, open Services › eBRC, pick the inward remittance message (IRM) your bank reported, link it to the Shipping Bill or services invoice it paid, enter the amount it settles and submit with the declaration. Many lines at once go in DGFT's bulk-upload file, or through DGFT's eBRC API with your own credential. Banks still generate eBRCs for the exports they realise, but an exporter no longer has to wait for them. Once the bank has reported the receipt to DGFT, you can tie it to the export yourself in a few minutes. #### Key points - An eBRC is generated from an IRM: the bank's report to DGFT of a receipt for your IEC. - No IRM, no eBRC: if a receipt is missing on the portal, ask the bank to report it. - You can use part of an IRM, split one IRM across several bills, or club IRMs of the same currency, bank and account. - The bulk-upload file and DGFT's eBRC API follow the same rules as the portal screen. - Do not send a line twice while DGFT is processing it: a second eBRC for the same money can only be cancelled by DGFT. #### Before you start Every receipt your [AD bank](https://fxlayerhq.com/insights/role-of-the-ad-bank) handles for an export is reported to [DGFT](https://www.dgft.gov.in)'s [eBRC](https://fxlayerhq.com/insights/ebrc-and-firc) system as an inward remittance message (IRM): the IEC, the bank's reference, the date, the amount and currency, the [purpose code](https://fxlayerhq.com/insights/rbi-purpose-codes) and the bank's IFSC. You cannot change those particulars, so check them first. If a receipt is not on the portal, or carries the wrong purpose code, ask the bank to report or correct it. Have the export ready: for goods, the [Shipping Bill](https://fxlayerhq.com/insights/what-is-edpms) number, date, port, value and currency and the AD code on it; for services, the invoice number, date, value and currency, its SAC code and how the service was supplied. DGFT Trade Notice 12/2024-25 of 14 August 2024 opened eBRC generation to exporters; the IEC's primary user, or a user it has authorised, does it. #### Step by step on the portal 1. **Sign in** to the DGFT portal with the IEC's credentials. 1. **Open Services › eBRC.** The receipts the banks reported for the IEC are listed as IRMs, each with the amount still free. 1. **Choose the IRM** and check its amount, currency, date and purpose code against your records. 1. **Link it to the export** it paid: the Shipping Bill for goods, or the invoice for services, with the SAC code and mode of supply. 1. **Enter the amount** the IRM settles on that bill. It can be part of the IRM; one IRM can be split across several bills, and IRMs in the same currency, from the same bank and account, can be clubbed into one eBRC. 1. **Tick the declaration and submit.** Note the request number DGFT gives. 1. **Download the eBRC** once it is generated. The portal shows its utilisation for export benefits: available or utilised. #### Many receipts: the bulk-upload file For more than a handful of lines, DGFT's bulk-upload option takes the same lines in its prescribed template under Services › eBRC. The rules are the same as on the screen: the amount mapped cannot exceed the IRM's free balance, and the particulars must agree with the IRM and the export. Keep the file you uploaded with DGFT's answer, so you can see which lines were accepted. #### A steady flow: DGFT's eBRC API An exporter with many receipts a month can let its own software send the requests. The IEC's primary user generates an API credential on the portal under Services › eBRC › API Credential (it can be downloaded once), registers the outbound IP address the software calls from, and authorises any third-party user with a DSC or Aadhaar e-sign. The software then reads the IRMs, sends each request with the declaration, and collects the eBRC numbers when DGFT has processed them. #### When a line is refused - **More than the IRM's free balance.** An earlier eBRC, or an outward remittance message (ORM) for a refund to the buyer, has already used part of it. - **The export does not match.** The Shipping Bill number, date, port or AD code differs from customs' record, or the invoice is not the one the receipt paid. - **The IRM is under another IEC** or carries a purpose code that is not an export of goods or services. - **The line is already with DGFT.** Check the earlier request's status before sending it again. FxLayer's eBRC tracker builds one line per receipt from the records, checks each against these rules, sends them through DGFT's API with the declaration ticked by an owner or compliance user, or produces the bulk-upload file on any plan, and writes each eBRC number back onto its Shipping Bill or invoice. #### Questions **What if the receipt is not on the DGFT portal?** An eBRC can only be generated from an IRM, and only the bank reports IRMs. Ask the bank to report the inward remittance to DGFT for your IEC, with the right purpose code, then link it. **Can one receipt pay several Shipping Bills?** Yes. Map part of the IRM to each bill; together they cannot exceed what the IRM has free. Several IRMs in the same currency, from the same bank and account, can also go into one eBRC. **Can I generate an eBRC for a services export?** Yes. Link the IRM to the services invoice instead of a Shipping Bill, with the SAC code and the mode of supply. From 1 October 2026 the same invoices also go on the monthly EDF to the bank. **I generated the same eBRC twice. What now?** Only DGFT can cancel an eBRC. Raise it with DGFT, and in future check a request's status before sending the same line again. #### Sources - [Directorate General of Foreign Trade (eBRC)](https://www.dgft.gov.in) - [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) 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. ### Merchanting trade: buying abroad, selling abroad, reporting in India By CA Abhay Jaiswal · Updated 2026-10-06 · Source: https://fxlayerhq.com/insights/merchanting-trade-transactions Expert opinion · Merchanting trade **Short answer.** A merchanting trade transaction (MTT) is a purchase of goods from one foreign country and their sale to another without the goods entering India. Both legs go through the same AD bank, the goods must be importable into India, the supplier is paid under S0108 and the buyer pays under P0108, and for trades from 1 October 2026 the two legs must be at most six months apart. In a merchanting trade the goods never touch Indian soil, but both payments pass through your Indian bank account. That makes the transaction simple to ship and demanding to document. #### Key points - Both legs of a merchanting trade must be routed through the same AD bank. - The goods must be permitted for import into India under the Foreign Trade Policy in force. - For trades starting from 1 October 2026, the payment to the supplier and the receipt from the buyer must be at most six months apart; older trades keep the four-month outlay limit. - The import leg is reported under S0108 and the export leg under P0108. #### What counts as merchanting trade A merchanting trade transaction (MTT) is one where an Indian resident buys goods from a supplier outside India and sells the same goods to a buyer outside India, with the goods shipped from the supplier's country to the buyer's country without entering India's domestic tariff area. The Indian business earns its margin on the difference between the two legs. Goods may pass through an Indian port only in transit, under customs supervision. If they are cleared into India, the transaction becomes an ordinary import followed by an export. #### The conditions your bank applies - The goods must be ones that can be imported into India under the Foreign Trade Policy in force on the date of shipment, and the transaction must follow its rules. - Both the import leg and the export leg must be handled by the same [AD bank](https://fxlayerhq.com/insights/role-of-the-ad-bank), which checks the documents for each leg. - The bank will want to see a genuine trade: contracts or orders for both legs, shipping documents that link the supplier's shipment to the buyer's delivery, and payments that agree with them. - Any advance paid to the supplier above the limit RBI sets is normally covered by a letter of credit or a bank guarantee. #### Timelines: outlay and completion For trades starting from 1 October 2026, the [Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026](https://www.rbi.org.in/Scripts/BS_FemaNotifications.aspx?Id=13277) look at the gap between the two legs: the payment to the supplier and the receipt from the buyer should be at most six months apart, counted from whichever leg comes first. Your bank watches it from that date, and same-bank routing continues. Trades that started before 1 October 2026 stay under the older rules: a foreign exchange outlay (the time between paying the supplier and being paid by the buyer) of at most four months, and the whole transaction completed within nine months. Confirm the position for each trade with your AD bank. #### Reporting and documentation The payment to the supplier is made under [purpose code](https://fxlayerhq.com/insights/rbi-purpose-codes) [S0108](https://fxlayerhq.com/purpose-codes/s0108) and the receipt from the buyer under [P0108](https://fxlayerhq.com/purpose-codes/p0108), so the bank can pair the two legs. Banks generally ask for an application in [Form A2](https://fxlayerhq.com/insights/form-a1-vs-form-a2) for the import leg, along with the request letter and the documents for the trade. Because the payment is not for an import into India, the tax position of the import leg has to be considered, and [Form 145](https://fxlayerhq.com/insights/form-145-and-form-146) is generally filed, usually under Part D where the supplier has no permanent establishment in India. #### Where merchanting trades go wrong - The two legs are paid or received through different banks. - The buyer pays late and the gap between the two legs passes the limit without the bank being told. - The shipping documents do not show that the goods went from the supplier to the buyer. - The margin looks unusual and the bank asks for an explanation that is not on file. FxLayer keeps both legs on one merchant-trade record, counts the outlay from the day you pay the supplier and prepares the bank papers for each leg. #### Questions **Can services be merchanted?** No. Merchanting trade covers goods. Buying and reselling services is handled as a services import and a services export, each with its own rules. **Does a merchanting trade need an IEC?** Yes. The Indian party needs an Importer-Exporter Code, and the trade should be reflected in its books like any other import and export. **What if the buyer never pays?** The export leg becomes an overdue receivable and the bank will follow up as it would for any unrealised export. Talk to your bank early, because the outlay limit is also running. #### 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. ### The monthly EDF for services under Circular No. 25: fields, formats and deadlines By CA Prachi Goel · Updated 2026-10-14 · Source: https://fxlayerhq.com/insights/monthly-edf-for-services Expert opinion · Exports **Short answer.** From 1 October 2026, every Indian exporter of services declares its export invoices on one consolidated Export Declaration Form a month, within 30 days from the end of the month of invoicing, to the AD bank through which the money comes in (STPI or the SEZ authority where they apply). A.P. (DIR Series) Circular No. 25 of 28 September 2026 sets the fields and file formats. SOFTEX is gone and the old EDF waiver for services with it. From 1 October 2026 every exporter of services declares its invoices on the unified Export Declaration Form, once a month, to the AD bank through which the money comes in. A.P. (DIR Series) Circular No. 25 of 28 September 2026 sets out how: the data fields, the file formats and the procedure for the consolidated submission. #### Key points - Every services export invoice dated on or after 1 October 2026 goes on an EDF; one consolidated EDF covers all the invoices of a month. - It is filed with the AD bank through which the proceeds are realised (software exporters may use STPI; SEZ units file with their SEZ authority) within 30 days from the end of the month of invoicing. - Circular No. 25 fixes the data fields and the file formats (an XML / CSV schema) and how the submission reaches the bank's system. - The SAC code is mandatory on every line; a missing buyer address or country sends the declaration back. #### What changed on 1 October 2026 The [Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026](https://www.rbi.org.in/Scripts/BS_FemaNotifications.aspx?Id=13277) brought goods, services and software exports under one Export Declaration Form. The [SOFTEX](https://fxlayerhq.com/insights/p0802-or-p0807) form that software exporters filed with STPI, and the general waiver that let most other service exporters skip the EDF altogether, both ended with the old regulations. A.P. (DIR Series) Circular No. 20 of 16 January 2026 announced the change; A.P. (DIR Series) Circular No. 25 of 28 September 2026 gives the operational guidelines and technical specifications that make it work from day one. The practical effect: a services company that never filed anything with its bank beyond the invoice now has a monthly return to the [AD bank](https://fxlayerhq.com/insights/role-of-the-ad-bank), and the bank enters each declaration in [EDPMS](https://fxlayerhq.com/insights/what-is-edpms), where the invoice stays outstanding until the money arrives. #### Who files, and with whom The exporter of the service files. The specified authority is the AD bank through which the proceeds are, or will be, realised. Exporters of software may file with STPI as before, through its portal; a unit in a Special Economic Zone files with its SEZ authority. A company that realises through two banks files one EDF per bank, each covering the invoices that bank will see paid. #### What the declaration carries Circular No. 25 lists the data fields. The exporter's part names the company, its address, PAN (mandatory), IEC and GSTIN, the AD bank and its code, and the month declared. Each invoice line carries the buyer's name, address and country, the SAC code of the service (mandatory), a description, the invoice number and date, the currency and value, the net realisable value after any deduction agreed in the contract, the contract or agreement reference, the period of service and the mode of delivery (online, on-site, rendered in India to a visiting buyer, or mixed). The circular also fixes the file formats a bank's system accepts: a structured file in the published XML / CSV schema for banks that take the EDF electronically, alongside the signed declaration itself. Keeping the invoice register in the circular's field order is the simplest way to produce either without re-keying. #### When it is due, and what happens next The consolidated EDF is due within 30 days from the end of the month in which the invoices were raised. An exporter of services other than software may instead submit it on or before the day the payment for those invoices comes in. The AD bank may extend the period on a written request with reasons. Once received, the bank enters the declaration in EDPMS within five working days and gives the exporter the EDF number, which then travels with every realisation against those invoices. From there the ordinary export discipline applies: the proceeds must be realised within nine months of the invoice date, twelve when the invoice is raised or settled in rupees, and the entry closes in EDPMS when the bank reports the realisation, with the e-BRC following for exporters who claim benefits. #### A month-end routine that works - Check every services export invoice for the SAC code and the buyer's full address and country before the month closes; these are the fields banks send back. - Group the month's invoices by the authority they go to, and produce one declaration per group. - Submit by the 30th day after month end, or sooner if a payment is expected before that; ask for an [extension](https://fxlayerhq.com/insights/export-realisation-timelines) in writing if you will miss it. - Record the EDF number the bank gives you against every invoice it covers, so each receipt can be matched to its declaration. FxLayer does this from the invoices already in the workspace: Service invoices › Monthly EDF groups every receipt invoice dated from 1 October 2026 by month and authority, flags the missing fields, produces the EDF as a PDF and a CSV in the circular's field order, emails it to the bank's trade-finance desk and records the number on each invoice. The due date sits on the Compliance calendar and the EDF register under Statutory reports. #### Questions **Does a company that only exports services and has no IEC still file?** Yes. The declaration identifies the exporter by PAN; the IEC is given where the company has one. FxLayer knows a services-only client by its PAN for the same reason. **Can one EDF cover invoices in different currencies?** Yes. Each invoice line carries its own currency and value; the declaration totals them by currency. **What if an invoice is cancelled after the EDF goes in?** Tell the bank in writing with the EDF number, so the EDPMS entry for that invoice is reduced or closed. Keep the credit note with the invoice. **Does an individual freelancer have to file the EDF?** RBI indicated on 7 October 2026 that individuals need not; its FAQs on the point are awaited. Until they are out, ask your AD bank and keep its answer in writing. FxLayer records the bank's answer on the invoices it covers, or prepares the EDF if the bank wants one. **Is the XML file compulsory?** Only where the bank takes the EDF through its system in that format. The signed declaration remains the document; the structured file carries the same fields in the schema the circular publishes. **Has the EDF replaced SOFTEX?** Yes. From 1 October 2026 software exports are declared on the same monthly Export Declaration Form as other services. Software exporters may still file through STPI, which acts as the specified authority for them; the separate SOFTEX form ended with the old regulations. #### 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. ### 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. ### RBI purpose codes: the five characters that classify every payment By CA Prachi Goel · Updated 2026-10-14 · Source: https://fxlayerhq.com/insights/rbi-purpose-codes Expert opinion · Banking **Short answer.** RBI purpose codes classify every foreign exchange payment: codes starting with S are for money going out of India and codes starting with P for money coming in. Goods use S0101 to S0104 and P0101 to P0103, merchanting the pair S0108 and P0108, and services a code for the work, such as P0802 for software. The code decides the forms and which open items the payment settles. The purpose code tells your bank, RBI and the tax department what a payment is for. It decides the forms you file, how the payment is reported and which open items it can settle. #### Key points - Codes starting with S are for payments out of India; codes starting with P are for receipts. - Imports of goods use S0101 to S0104; exports of goods use P0101 to P0103. - Merchanting trade uses the pair S0108 and P0108. - The wrong code can leave an IDPMS or EDPMS entry open and change the tax papers required. - A freelancer uses the code for the work done: P0802 software, P1006 consulting, P1101 video, P1107 teaching, P1099 when nothing closer fits. - Some codes, such as salary (P1401) or family maintenance (P1301), are reported only: they settle no invoice or customs document. #### How the codes are built RBI's purpose codes have five characters: a letter and four digits. S marks a payment from India and P a receipt into India. The first two digits group the purpose, so 01 covers trade in goods, 08 computer and information services and 10 other business services, and the last two digits narrow it down. Every code, with the bank form it needs, its income-tax nature and GST, is in the [RBI purpose code directory](https://fxlayerhq.com/purpose-codes). #### Codes for goods For imports, [S0101](https://fxlayerhq.com/purpose-codes/s0101) is an [advance payment](https://fxlayerhq.com/insights/advance-import-payments) and [S0102](https://fxlayerhq.com/purpose-codes/s0102) a payment against an invoice, with related codes for other import situations. These are on the specified list for tax purposes, so no [Form 145](https://fxlayerhq.com/insights/form-145-and-form-146) is needed. For exports, [P0101](https://fxlayerhq.com/purpose-codes/p0101) covers bills negotiated, purchased or discounted, [P0102](https://fxlayerhq.com/purpose-codes/p0102) bills sent on collection and [P0103](https://fxlayerhq.com/purpose-codes/p0103) an advance against an export contract. The bank uses these codes to settle entries in [IDPMS](https://fxlayerhq.com/insights/what-is-idpms) and [EDPMS](https://fxlayerhq.com/insights/what-is-edpms). #### Codes for services Service payments carry codes that describe the service: [S0802](https://fxlayerhq.com/purpose-codes/s0802) for software consultancy and implementation, including SaaS subscriptions, [S0803](https://fxlayerhq.com/purpose-codes/s0803) for data processing and hosting, [S0902](https://fxlayerhq.com/purpose-codes/s0902) for royalties and licence fees and S1006 for business and management consultancy, among many others. These usually need Form A2 and the tax analysis behind Form 145, because most are not on the specified list. #### Why the code matters - It decides whether the payment is reported in IDPMS or EDPMS and which entries it can settle. - It decides whether Form 145 and Form 146 are required. - It feeds RBI's balance-of-payments statistics, so banks are careful about corrections. - Changing a code after the payment needs a request to the bank and often supporting documents. FxLayer only lets a remittance settle the records its purpose code allows, so an advance cannot be matched to a Bill of Entry by mistake and a merchanting payment cannot close an ordinary import. #### Codes for freelancers and service exporters A freelancer or a small services firm paid by a client abroad uses the code that describes the work. Building or fixing software, apps and websites is P0802; hosting and data work P0803; consulting P1006; advertising and digital marketing P1007; video editing, animation and audio P1101; teaching and tutoring P1107; accounting and bookkeeping P1005; engineering P1014. Fees for using your work, such as stock photos, music or a licensed design, are royalties under P0902. RBI has no code of its own for design or writing. They go as P1099, other services, unless the design is part of building software or a website, when P0802 fits better. A payment that reaches you through a payment platform carries the same code as one paid straight into your bank. If your [first payments from abroad](https://fxlayerhq.com/insights/freelancers-paid-from-abroad) are coming in, the code is one of four things to get right. #### Codes that settle nothing Some codes describe money that is not for goods or services at all: salary from a foreign employer (P1401), family maintenance and savings sent by a relative abroad (P1301), personal gifts (P1302), refunds of tax (P1306) and investment flows such as foreign direct investment. They are reported to RBI under the code, but they link to no invoice and no customs document. Do not use them for payments for your work: a client's payment booked as a gift or as salary misstates your income and may need correcting with the bank later. #### Questions **Where do I find the full list of purpose codes?** RBI publishes the list for reporting foreign exchange transactions: 137 receipt codes and 142 payment codes, one of them kept only for old records. Your AD bank's remittance form lists them too. FxLayer carries the whole list in plain words and finds the code from a description of the work. **I was paid for design work. Which code do I use?** RBI has no design code. Use P1099, other services, or P0802 when the design is part of building software, an app or a website. Product design for manufacturing goes as engineering, P1014. **Can one remittance carry two purpose codes?** No. Each remittance carries one code. If one invoice covers goods and services, pay them separately or follow your bank's guidance. #### Sources - [RBI notifications, including the A.P. (DIR Series) circulars to AD banks](https://www.rbi.org.in/Scripts/NotificationUser.aspx) - [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) 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. ### Your AD bank: the gatekeeper for every foreign trade payment By CA Abhay Jaiswal · Updated 2026-10-14 · Source: https://fxlayerhq.com/insights/role-of-the-ad-bank Expert opinion · Banking **Short answer.** An AD (Authorised Dealer) Category I bank is a bank licensed by RBI to deal in foreign exchange. It examines your documents, makes or receives the payment, reports it to RBI and closes the matching IDPMS or EDPMS entry. Every Shipping Bill and Bill of Entry is tied to the AD bank code declared to customs, so that bank handles its closure. RBI does not see your invoices. Your AD bank does, and it is the bank that reports, matches and closes each transaction on RBI's systems. #### Key points - AD Category I banks are licensed by RBI to deal in foreign exchange. - They examine documents, make or receive payments, report them and close IDPMS and EDPMS entries. - Each Shipping Bill and Bill of Entry is tied to the AD bank code declared to customs. - Clear requests that quote the right references get processed faster. - Changing banks does not move old entries: each stays with the bank whose code is on the customs document until it is transferred. #### What an AD bank is Authorised dealer Category I banks are banks authorised by RBI under FEMA to handle foreign exchange transactions for their customers. RBI delegates much of the day-to-day supervision of trade transactions to them through its Master Directions. #### What the bank checks and reports For each transaction the bank checks that the documents support the payment, applies the right [purpose code](https://fxlayerhq.com/insights/rbi-purpose-codes), reports the transaction to RBI and, for goods, matches it in [IDPMS](https://fxlayerhq.com/insights/what-is-idpms) or [EDPMS](https://fxlayerhq.com/insights/what-is-edpms). It can approve [extensions](https://fxlayerhq.com/insights/export-realisation-timelines), reductions and write-offs within its delegated powers, and refers the rest to RBI. #### The AD code on your customs documents Customs links every Shipping Bill and Bill of Entry to an AD code: the code of the bank branch you registered for that port on ICEGATE. EDPMS and IDPMS route each document to that bank, so the bank on the customs document is the one that must see the payment and close the entry. If you pay or receive through a different bank, the entry stays open with the first bank until it is transferred. To move your business to a new bank, register its AD code with customs for each port before the next shipment, and ask the old bank to transfer the entries still open on its books. Entries already closed stay where they are. #### What the bank decides, and what goes to RBI RBI's Master Directions delegate a good deal to AD banks: extending the period for realising an export, approving a reduction in invoice value or a write-off within set limits, closing small-value entries on a declaration, and allowing advances and refunds that meet the conditions. Anything outside those powers, such as a write-off above the bank's limit or an extension the bank cannot give, goes to RBI through the bank with its recommendation. Because so much rests on the bank's judgement, its view of your record matters. A history of complete packages, timely closures and quick answers to its queries makes the next extension or write-off easier to obtain. #### Working well with your bank - Register your AD bank code with customs at each port you use, and keep it consistent. - Quote Bill of Entry or Shipping Bill numbers, dates and port codes on every request. - Send complete packages: letter, application form, tax papers and supporting documents together. - Reconcile against the bank's outstanding statements monthly. FxLayer prepares the package for each bank from the bank master, including account details, charges and branch codes, and tracks how long each request has been with the bank. #### Questions **Can I use more than one AD bank?** Yes, but each customs document is tied to the AD bank code declared on it, and some transactions, such as both legs of a merchanting trade, must stay with one bank. **How do I tie a port to my AD bank?** Register the bank's AD code for that port on ICEGATE before the first shipment through it. The bank gives you its AD code letter; customs then puts that code on every Shipping Bill and Bill of Entry filed at the port. **What if I paid through a different bank?** The entry stays open with the bank whose AD code is on the customs document. Ask that bank to accept the payment evidence, or ask it to transfer the entry to the bank that made the payment, before the due date. #### Sources - [RBI notifications, including the A.P. (DIR Series) circulars to AD banks](https://www.rbi.org.in/Scripts/NotificationUser.aspx) - [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) 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. ### Paying a foreign vendor at the treaty rate: the papers that matter By CA Prachi Goel · Updated 2026-10-06 · Source: https://fxlayerhq.com/insights/tax-treaty-benefits-trc Expert opinion · Cross-border tax **Short answer.** A lower tax-treaty rate can be applied to a payment to a non-resident only when the payee shows it is resident in the treaty country: its tax residency certificate (TRC), backed by the prescribed declaration, and, for business income, a declaration that it has no permanent establishment in India. Without these papers, tax is withheld at the rate under the Act. The treaty rate is often a fraction of the rate under the Act, and sometimes nil. Whether you can apply it depends less on the treaty than on what the payee has given you. #### Key points - A treaty rate can only be applied if the payee is resident in the treaty country. - The payee's tax residency certificate is the core evidence, supported by the prescribed declaration. - A no-permanent-establishment declaration supports treating business income as not taxable in India. - Without the papers, tax is withheld at the rate under the Act. #### Why the treaty matters Payments to non-residents for services, royalties or interest may be taxable in India. India's double taxation avoidance agreements often reduce the rate, or allocate the right to tax solely to the payee's country, for example where business profits are earned without a permanent establishment in India. The lower of the Act rate and the treaty rate can be applied. #### The papers - **Tax residency certificate (TRC)** from the payee's tax authority, covering the period of the payment. - **The prescribed declaration** with the details the TRC does not show, such as the payee's tax identification number and address. - **No-PE declaration** confirming that the payee has no permanent establishment in India. - Where the treaty has a limitation of benefits or beneficial-ownership condition, evidence that it is met. #### How it flows into Form 145 With the papers in hand, a payment that would be taxable under the Act may be not chargeable under the treaty, moving it to Part D of [Form 145](https://fxlayerhq.com/insights/form-145-and-form-146), or taxable at a lower rate, which the Form 146 certificate records. Without them, the full rate applies and the payment is grossed up if you have agreed to bear the tax. FxLayer keeps the TRC, declaration and no-PE status on the party master with their validity dates, warns when they are missing or expired and shows the treaty article and rate with its source. #### Questions **Does a TRC need renewing?** Yes. It usually covers one tax year. Ask the payee for a fresh certificate each year. **Is a treaty benefit available without a PAN for the payee?** Where the payee has no PAN, the rules ask for specified details and documents, including the TRC, to avoid the higher rate. Follow the current requirements. #### Sources - [Income Tax Department of India](https://www.incometaxindia.gov.in) - [Income Tax Department: Form 145 FAQs](https://www.incometaxindia.gov.in/documents/d/guest/form-145-faqs) - [Income Tax Department: Form 146 FAQs](https://www.incometaxindia.gov.in/documents/d/guest/form-146-faqs) 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. ### What is EDPMS, and when does a Shipping Bill close? By CA Abhay Jaiswal · Updated 2026-10-06 · Source: https://fxlayerhq.com/insights/what-is-edpms Expert opinion · Exports **Short answer.** EDPMS (Export Data Processing and Monitoring System) is RBI's database that opens an entry for every Shipping Bill received from customs and keeps it open until your AD bank reports the export proceeds against it. From 1 October 2026 the value must be realised within nine months of export, twelve when invoiced in rupees; entries left open draw bank follow-up and, in persistent cases, caution-listing. Every Shipping Bill you file opens an entry that stays visible to your bank and to RBI until the export proceeds are realised and reported. Here is how that system works and what keeps an exporter in good standing. #### Key points - EDPMS holds one entry for every Shipping Bill, received automatically from customs. - Your AD bank reports each realisation against the Shipping Bill; you cannot close an entry yourself. - Export value should generally be realised within nine months of the date of export. - Entries left open past their due date lead to bank follow-up and, in persistent cases, caution-listing. #### What EDPMS is The Export Data Processing and Monitoring System (EDPMS) is the platform the Reserve Bank of India uses to follow every export of goods and software from shipment to realisation. It replaced the paper GR, SDF and [SOFTEX](https://fxlayerhq.com/insights/p0802-or-p0807) follow-up that banks once handled manually, and it gives RBI, customs and the authorised dealer (AD) banks a single view of what has been exported and what has been paid for. Each Shipping Bill filed with customs becomes an EDPMS entry, tagged to the [AD bank](https://fxlayerhq.com/insights/role-of-the-ad-bank) code the exporter declared. From that moment the entry is outstanding until the bank reports that the full export value has been realised, or that the shortfall has been regularised through an approved reduction, [extension](https://fxlayerhq.com/insights/export-realisation-timelines) or write-off. #### How a Shipping Bill reaches EDPMS Customs transmits Shipping Bill data from ICEGATE to EDPMS each day. The entry carries the Shipping Bill number and date, port code, invoice value and currency, the exporter's IEC and the AD bank code. Software exports follow the same path through the SOFTEX form; exports from non-EDI locations are captured from the export declaration. If the Shipping Bill names the wrong AD bank, the entry sits with that bank. The exporter has to ask the bank named on the Shipping Bill to transfer the entry, which is a common reason for entries that look open long after the money has arrived. #### How realisation is reported When the buyer pays, the inward remittance arrives at your AD bank with a [purpose code](https://fxlayerhq.com/insights/rbi-purpose-codes) such as [P0102](https://fxlayerhq.com/purpose-codes/p0102) (realisation of export bills sent on collection) or [P0103](https://fxlayerhq.com/purpose-codes/p0103) (advance received against an export contract). The bank then matches that remittance to one or more Shipping Bills and reports the realisation in EDPMS. A single remittance can settle several Shipping Bills, and a single Shipping Bill can be settled by several remittances. Bank charges deducted abroad, short payments and discounts all leave a gap between the invoice value and the amount realised. Small differences are usually closed by the bank on a declaration; larger ones need a reduction in invoice value, supported by documents such as a credit note or buyer correspondence. #### The nine-month rule Under the FEMA rules on export of goods and services, the full value of an export should generally be realised and repatriated within nine months of the date of export, or twelve months when the invoice is raised or settled in Indian rupees. RBI has varied this period for specific situations from time to time, so always check the current Master Direction or ask your AD bank. Where payment will take longer, the exporter can ask the AD bank for an extension before the period runs out, with reasons and evidence of follow-up with the buyer. Where part of the value will never be received, the shortfall can be written off within the limits RBI allows, which are linked to the exporter's realisations in the previous year and conditional on surrendering any export incentives claimed on the unrealised part. #### What happens when entries stay open AD banks review overdue EDPMS entries regularly and write to exporters for an explanation. An exporter whose entries stay unexplained can be placed on RBI's caution list, after which banks handle new shipments only against advance payment or an irrevocable letter of credit. Coming off the list means clearing the outstanding entries and asking the bank to de-list the exporter. #### How to keep EDPMS clean - Check the AD bank code on every Shipping Bill before it is filed. - Give the bank the Shipping Bill numbers a remittance relates to as soon as it arrives, instead of waiting for the bank to ask. - Track each Shipping Bill against its due date and start the extension request well before it falls due. - Reconcile your own register against the bank's outstanding statement every month. FxLayer keeps each Shipping Bill, its remittances and its closure letter on one record, counts down to the due date and prepares the request to the bank once the value is fully matched. #### Questions **Is EDPMS the same as ICEGATE?** No. ICEGATE is the customs system where the Shipping Bill is filed. EDPMS is RBI's system that receives the Shipping Bill data from customs and records its realisation as reported by the AD bank. **Can an exporter see EDPMS entries directly?** Exporters do not log in to EDPMS. The AD bank can share the list of outstanding entries for your IEC, and many banks show it on their trade portals. **Who closes an EDPMS entry?** Only the AD bank. It closes the entry when it reports a realisation equal to the export value, or when it records an approved reduction, extension outcome or write-off. **What is an eBRC?** An electronic Bank Realisation Certificate, issued through DGFT's system from the bank's realisation data. It is the proof of realisation used for export incentives and GST refunds. #### 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. ### What is IDPMS, and how does a Bill of Entry close? By CA Abhay Jaiswal · Updated 2026-10-06 · Source: https://fxlayerhq.com/insights/what-is-idpms Expert opinion · Imports **Short answer.** IDPMS (Import Data Processing and Monitoring System) is RBI's database where your AD bank records every outward remittance for imports and every Bill of Entry, and matches the two. An advance payment stays open until its Bill of Entry arrives; a Bill of Entry stays open until it is paid, normally within six months of shipment. Only the bank closes an entry. Every rupee sent abroad for imported goods has to be matched with proof that the goods arrived. IDPMS is where your AD bank does that matching, and where open items surface when the papers do not line up. #### Key points - IDPMS records every outward remittance for imports and every Bill of Entry, and links them. - Advance payments open an entry that waits for the Bill of Entry. - Import payments should normally be made within six months of shipment, unless deferred payment is permitted. - Your AD bank closes the entry; your job is to give it the Bill of Entry details and explain any difference. #### What IDPMS is The Import Data Processing and Monitoring System (IDPMS) is RBI's platform for following import payments. Customs sends Bill of Entry data to it, [AD banks](https://fxlayerhq.com/insights/role-of-the-ad-bank) report the [outward remittances](https://fxlayerhq.com/insights/form-a1-vs-form-a2) they make for imports, and each bank then settles its customers' remittances against the Bills of Entry. The result is a running list of payments without proof of import and Bills of Entry without payment. #### Two kinds of open entries **Outward remittances awaiting a Bill of Entry.** When you pay in advance ([purpose code](https://fxlayerhq.com/insights/rbi-purpose-codes) [S0101](https://fxlayerhq.com/purpose-codes/s0101)), the remittance stays open until the goods arrive and the Bill of Entry is linked to it. The goods should normally be imported within the period set by the rules for [advance payments](https://fxlayerhq.com/insights/advance-import-payments), and the evidence of import submitted to the bank. **Bills of Entry awaiting payment.** When the goods arrive first, the Bill of Entry stays open until the payment is made and matched. Payment for imports should normally be made within six months of the date of shipment, unless the arrangement is for deferred payment permitted under FEMA. #### How matching works Matching is done by the bank, but it relies on the details you give it. Each payment request should quote the Bill of Entry number, date and port code, or the proforma invoice for an advance. One Bill of Entry can be paid through several remittances, and one remittance can cover several Bills of Entry from the same supplier. When the amounts differ, for example because of bank charges, a short shipment or a price adjustment, the bank will ask for an explanation before it settles the entry. Small differences are closed on a declaration within the bank's tolerance; larger ones need supporting documents. #### Closing an entry with the bank Once the payment and the goods agree, most banks expect a short request asking them to settle the Bill of Entry in IDPMS, listing the Bill of Entry and the remittances. If the Bill of Entry was filed under another bank's code, the entry has to be transferred first. #### Common reasons entries stay open - The Bill of Entry carries a different IEC or AD code from the one used for the payment. - An advance was paid against a proforma, but the Bill of Entry was never given to the bank. - The invoice was paid in parts and one part was reported under another purpose code. - Goods were short-shipped or rejected and the refund or credit note was not documented. FxLayer links each proforma, invoice, Bill of Entry and remittance on one chain, flags the advance that is still waiting for goods and prepares the settlement request once everything matches. #### Questions **Is IDPMS only for advance payments?** No. It covers all import payments. Advance payments are simply the most visible open items because the Bill of Entry arrives later. **Do service payments go through IDPMS?** No. IDPMS is for imports of goods. Payments for services are governed by Form A2, the purpose code and the tax rules, including Form 145 and Form 146 where they apply. **What if goods were never received after an advance?** The supplier should refund the advance, and the refund is reported against the original remittance. Where that is not possible, the bank will ask for documents explaining why, and the case may need its approval to close. #### 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 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. ## RBI purpose codes Each code's page explains the bank form, income tax with Form 145 / 146, GST and reporting: https://fxlayerhq.com/purpose-codes. One line per code: direction, purpose, bank form, Form 145 / 146, income-tax nature, GST, reporting. - P0001 (received): Repatriation of Indian portfolio investment abroad – equity shares. Form: none (the bank issues a FIRA); income tax: Depends on what it is; GST: Usually outside GST; reporting: Capital account. https://fxlayerhq.com/purpose-codes/p0001 - P0002 (received): Repatriation of Indian portfolio investment abroad – debt instruments. Form: none (the bank issues a FIRA); income tax: Depends on what it is; GST: Usually outside GST; reporting: Capital account. https://fxlayerhq.com/purpose-codes/p0002 - P0003 (received): Repatriation of Indian direct investment abroad – equity shares. Form: none (the bank issues a FIRA); income tax: Depends on what it is; GST: Usually outside GST; reporting: Capital account. https://fxlayerhq.com/purpose-codes/p0003 - P0004 (received): Repatriation of Indian direct investment abroad – debt instruments. Form: none (the bank issues a FIRA); income tax: Depends on what it is; GST: Usually outside GST; reporting: Capital account. https://fxlayerhq.com/purpose-codes/p0004 - P0005 (received): Repatriation of Indian investment abroad in real estate. Form: none (the bank issues a FIRA); income tax: Depends on what it is; GST: Usually outside GST; reporting: Capital account. https://fxlayerhq.com/purpose-codes/p0005 - P0006 (received): Foreign direct investment into India – equity shares. Form: none (the bank issues a FIRA); income tax: Depends on what it is; GST: Usually outside GST; reporting: Capital account. https://fxlayerhq.com/purpose-codes/p0006 - P0007 (received): Foreign direct investment into India – debt instruments. Form: none (the bank issues a FIRA); income tax: Depends on what it is; GST: Usually outside GST; reporting: Capital account. https://fxlayerhq.com/purpose-codes/p0007 - P0008 (received): Foreign direct investment into India – real estate. Form: none (the bank issues a FIRA); income tax: Depends on what it is; GST: Usually outside GST; reporting: Capital account. https://fxlayerhq.com/purpose-codes/p0008 - P0009 (received): Foreign portfolio investment into India – equity shares. Form: none (the bank issues a FIRA); income tax: Depends on what it is; GST: Usually outside GST; reporting: Capital account. https://fxlayerhq.com/purpose-codes/p0009 - P0010 (received): Foreign portfolio investment into India – debt instruments. Form: none (the bank issues a FIRA); income tax: Depends on what it is; GST: Usually outside GST; reporting: Capital account. https://fxlayerhq.com/purpose-codes/p0010 - P0011 (received): Repayment of loans extended to non-residents. Form: none (the bank issues a FIRA); income tax: Depends on what it is; GST: Usually outside GST; reporting: Capital account. https://fxlayerhq.com/purpose-codes/p0011 - P0012 (received): Long and medium term loans from non-residents (ECB, over one year). Form: none (the bank issues a FIRA); income tax: Depends on what it is; GST: Usually outside GST; reporting: Capital account. https://fxlayerhq.com/purpose-codes/p0012 - P0013 (received): Short term loans from non-residents (trade credit, up to one year). Form: none (the bank issues a FIRA); income tax: Depends on what it is; GST: Usually outside GST; reporting: Capital account. https://fxlayerhq.com/purpose-codes/p0013 - P0014 (received): Receipts into non-resident deposits (FCNR(B) / NR(E)RA). Form: none (the bank issues a FIRA); income tax: Depends on what it is; GST: Usually outside GST; reporting: Capital account. https://fxlayerhq.com/purpose-codes/p0014 - P0015 (received): Loans and overdrafts taken by AD banks on their own account. Form: none (the bank issues a FIRA); income tax: Depends on what it is; GST: Usually outside GST; reporting: Capital account. https://fxlayerhq.com/purpose-codes/p0015 - P0016 (received): Purchase of a foreign currency against another currency. Form: none (the bank issues a FIRA); income tax: Depends on what it is; GST: Usually outside GST; reporting: Capital account. https://fxlayerhq.com/purpose-codes/p0016 - P0017 (received): Sale of intangible assets, land or natural resources – Government. Form: none (the bank issues a FIRA); income tax: Depends on what it is; GST: Usually outside GST; reporting: Capital account. https://fxlayerhq.com/purpose-codes/p0017 - P0019 (received): Sale of intangible assets (patents, copyrights, trademarks) – non-Government. Form: none (the bank issues a FIRA); income tax: Depends on what it is; GST: Usually outside GST; reporting: Capital account. https://fxlayerhq.com/purpose-codes/p0019 - P0020 (received): Financial derivatives – margin, premium and settlement receipts. Form: none (the bank issues a FIRA); income tax: Depends on what it is; GST: Usually outside GST; reporting: Capital account. https://fxlayerhq.com/purpose-codes/p0020 - P0021 (received): Sale of shares under an employee stock option. Form: none (the bank issues a FIRA); income tax: Depends on what it is; GST: Usually outside GST; reporting: Capital account. https://fxlayerhq.com/purpose-codes/p0021 - P0022 (received): Other investment in ADRs / GDRs. Form: none (the bank issues a FIRA); income tax: Depends on what it is; GST: Usually outside GST; reporting: Capital account. https://fxlayerhq.com/purpose-codes/p0022 - P0024 (received): External assistance received by India (loans to the Government of India). Form: none (the bank issues a FIRA); income tax: Depends on what it is; GST: Usually outside GST; reporting: Capital account. https://fxlayerhq.com/purpose-codes/p0024 - P0025 (received): Repayments received of external assistance extended by India. Form: none (the bank issues a FIRA); income tax: Depends on what it is; GST: Usually outside GST; reporting: Capital account. https://fxlayerhq.com/purpose-codes/p0025 - P0028 (received): Capital transfer receipts (guarantees, investment grants, large claims) – Government. Form: none (the bank issues a FIRA); income tax: Depends on what it is; GST: Usually outside GST; reporting: Capital account. https://fxlayerhq.com/purpose-codes/p0028 - P0029 (received): Capital transfer receipts (guarantees, investment grants, large claims) – non-Government. Form: none (the bank issues a FIRA); income tax: Depends on what it is; GST: Usually outside GST; reporting: Capital account. https://fxlayerhq.com/purpose-codes/p0029 - P0099 (received): Other capital receipts not included elsewhere. Form: none (the bank issues a FIRA); income tax: Depends on what it is; GST: Usually outside GST; reporting: Capital account. https://fxlayerhq.com/purpose-codes/p0099 - P0101 (received): Export bill negotiated / purchased / discounted (other than Nepal and Bhutan). Form: none (the bank issues a FIRA); income tax: Your income; GST: Zero-rated; reporting: EDPMS · Shipping Bill. https://fxlayerhq.com/purpose-codes/p0101 - P0102 (received): Realisation of export bills sent on collection (other than Nepal and Bhutan). Form: none (the bank issues a FIRA); income tax: Your income; GST: Zero-rated; reporting: EDPMS · Shipping Bill. https://fxlayerhq.com/purpose-codes/p0102 - P0103 (received): Advance received against export contract (other than Nepal and Bhutan). Form: none (the bank issues a FIRA); income tax: Your income; GST: Zero-rated; reporting: EDPMS · advance. https://fxlayerhq.com/purpose-codes/p0103 - P0104 (received): Receipts against intermediary / transit trade (third-country export passing through India). Form: none (the bank issues a FIRA); income tax: Your income; GST: Depends; reporting: EDPMS · Shipping Bill. https://fxlayerhq.com/purpose-codes/p0104 - P0108 (received): Goods sold under merchanting / export leg receipt. Form: none (the bank issues a FIRA); income tax: Your income; GST: Outside GST; reporting: MTT · same AD bank. https://fxlayerhq.com/purpose-codes/p0108 - P0109 (received): Export realisation on account of exports to Nepal and Bhutan. Form: none (the bank issues a FIRA); income tax: Your income; GST: Zero-rated; reporting: EDPMS · Shipping Bill. https://fxlayerhq.com/purpose-codes/p0109 - P0201 (received): Surplus freight / passenger fare of Indian shipping companies operating abroad. Form: none (the bank issues a FIRA); income tax: Your income; GST: Zero-rated export; reporting: Monthly EDF · EDPMS. https://fxlayerhq.com/purpose-codes/p0201 - P0202 (received): Operating expenses of foreign shipping companies operating in India. Form: none (the bank issues a FIRA); income tax: Your income; GST: Usually GST in India; reporting: Monthly EDF · EDPMS. https://fxlayerhq.com/purpose-codes/p0202 - P0205 (received): Operational leasing with crew – shipping companies. Form: none (the bank issues a FIRA); income tax: Your income; GST: Zero-rated export; reporting: Monthly EDF · EDPMS. https://fxlayerhq.com/purpose-codes/p0205 - P0207 (received): Surplus freight / passenger fare of Indian airlines operating abroad. Form: none (the bank issues a FIRA); income tax: Your income; GST: Zero-rated export; reporting: Monthly EDF · EDPMS. https://fxlayerhq.com/purpose-codes/p0207 - P0208 (received): Operating expenses of foreign airlines operating in India. Form: none (the bank issues a FIRA); income tax: Your income; GST: Usually GST in India; reporting: Monthly EDF · EDPMS. https://fxlayerhq.com/purpose-codes/p0208 - P0211 (received): Operational leasing with crew – airlines. Form: none (the bank issues a FIRA); income tax: Your income; GST: Zero-rated export; reporting: Monthly EDF · EDPMS. https://fxlayerhq.com/purpose-codes/p0211 - P0213 (received): Stevedoring, port handling – withdrawn in 2012, use P0214 (shipping) or P0215 (airlines). Form: none (the bank issues a FIRA); income tax: Your income; GST: Zero-rated export; reporting: Monthly EDF · EDPMS. https://fxlayerhq.com/purpose-codes/p0213 - P0214 (received): Stevedoring, demurrage, port handling receipts – shipping. Form: none (the bank issues a FIRA); income tax: Your income; GST: Zero-rated export; reporting: Monthly EDF · EDPMS. https://fxlayerhq.com/purpose-codes/p0214 - P0215 (received): Stevedoring, demurrage, port handling receipts – airlines. Form: none (the bank issues a FIRA); income tax: Your income; GST: Zero-rated export; reporting: Monthly EDF · EDPMS. https://fxlayerhq.com/purpose-codes/p0215 - P0216 (received): Freight receipts – shipping companies operating abroad. Form: none (the bank issues a FIRA); income tax: Your income; GST: Zero-rated export; reporting: Monthly EDF · EDPMS. https://fxlayerhq.com/purpose-codes/p0216 - P0217 (received): Passenger fare receipts – Indian shipping companies operating abroad. Form: none (the bank issues a FIRA); income tax: Your income; GST: Zero-rated export; reporting: Monthly EDF · EDPMS. https://fxlayerhq.com/purpose-codes/p0217 - P0218 (received): Other receipts by shipping companies. Form: none (the bank issues a FIRA); income tax: Your income; GST: Zero-rated export; reporting: Monthly EDF · EDPMS. https://fxlayerhq.com/purpose-codes/p0218 - P0219 (received): Freight receipts – Indian airlines operating abroad. Form: none (the bank issues a FIRA); income tax: Your income; GST: Zero-rated export; reporting: Monthly EDF · EDPMS. https://fxlayerhq.com/purpose-codes/p0219 - P0220 (received): Passenger fare receipts – airlines. Form: none (the bank issues a FIRA); income tax: Your income; GST: Zero-rated export; reporting: Monthly EDF · EDPMS. https://fxlayerhq.com/purpose-codes/p0220 - P0221 (received): Other receipts by airlines. Form: none (the bank issues a FIRA); income tax: Your income; GST: Zero-rated export; reporting: Monthly EDF · EDPMS. https://fxlayerhq.com/purpose-codes/p0221 - P0222 (received): Freight under other modes of transport (road, rail, inland waterways, pipeline). Form: none (the bank issues a FIRA); income tax: Your income; GST: Zero-rated export; reporting: Monthly EDF · EDPMS. https://fxlayerhq.com/purpose-codes/p0222 - P0223 (received): Passenger fare under other modes of transport (road, rail, inland waterways, pipeline). Form: none (the bank issues a FIRA); income tax: Your income; GST: Zero-rated export; reporting: Monthly EDF · EDPMS. https://fxlayerhq.com/purpose-codes/p0223 - P0224 (received): Postal and courier services by air. Form: none (the bank issues a FIRA); income tax: Your income; GST: Zero-rated export; reporting: Monthly EDF · EDPMS. https://fxlayerhq.com/purpose-codes/p0224 - P0225 (received): Postal and courier services by sea. Form: none (the bank issues a FIRA); income tax: Your income; GST: Zero-rated export; reporting: Monthly EDF · EDPMS. https://fxlayerhq.com/purpose-codes/p0225 - P0226 (received): Postal and courier services by other modes. Form: none (the bank issues a FIRA); income tax: Your income; GST: Zero-rated export; reporting: Monthly EDF · EDPMS. https://fxlayerhq.com/purpose-codes/p0226 - P0301 (received): Travel receipts – foreign currency bought by hotels, emporiums and institutions. Form: none (the bank issues a FIRA); income tax: Your income; GST: Usually GST in India; reporting: Monthly EDF · EDPMS. https://fxlayerhq.com/purpose-codes/p0301 - P0302 (received): Business travel. Form: none (the bank issues a FIRA); income tax: Your income; GST: Usually GST in India; reporting: Monthly EDF · EDPMS. https://fxlayerhq.com/purpose-codes/p0302 - P0304 (received): Travel for medical treatment (incl. currency bought by hospitals). Form: none (the bank issues a FIRA); income tax: Your income; GST: Usually GST in India; reporting: Monthly EDF · EDPMS. https://fxlayerhq.com/purpose-codes/p0304 - P0305 (received): Travel for education (incl. currency bought by educational institutions). Form: none (the bank issues a FIRA); income tax: Your income; GST: Usually GST in India; reporting: Monthly EDF · EDPMS. https://fxlayerhq.com/purpose-codes/p0305 - P0306 (received): Other travel receipts. Form: none (the bank issues a FIRA); income tax: Your income; GST: Usually GST in India; reporting: Monthly EDF · EDPMS. https://fxlayerhq.com/purpose-codes/p0306 - P0308 (received): Foreign currency / TCs surrendered by returning Indian tourists. Form: none (the bank issues a FIRA); income tax: Depends on what it is; GST: Usually outside GST; reporting: Recorded only. https://fxlayerhq.com/purpose-codes/p0308 - P0501 (received): Cost of construction of projects in India. Form: none (the bank issues a FIRA); income tax: Your income; GST: Usually GST in India; reporting: Monthly EDF · EDPMS. https://fxlayerhq.com/purpose-codes/p0501 - P0502 (received): Construction works carried out abroad by Indian companies. Form: none (the bank issues a FIRA); income tax: Your income; GST: Zero-rated export; reporting: Monthly EDF · EDPMS. https://fxlayerhq.com/purpose-codes/p0502 - P0601 (received): Life insurance premium (other than term insurance). Form: none (the bank issues a FIRA); income tax: Your income; GST: Zero-rated export; reporting: Monthly EDF · EDPMS. https://fxlayerhq.com/purpose-codes/p0601 - P0602 (received): Freight insurance relating to import and export of goods. Form: none (the bank issues a FIRA); income tax: Your income; GST: Zero-rated export; reporting: Monthly EDF · EDPMS. https://fxlayerhq.com/purpose-codes/p0602 - P0603 (received): Other general insurance premium including reinsurance and term life insurance. Form: none (the bank issues a FIRA); income tax: Your income; GST: Zero-rated export; reporting: Monthly EDF · EDPMS. https://fxlayerhq.com/purpose-codes/p0603 - P0605 (received): Auxiliary insurance services including commission. Form: none (the bank issues a FIRA); income tax: Your income; GST: Zero-rated export; reporting: Monthly EDF · EDPMS. https://fxlayerhq.com/purpose-codes/p0605 - P0607 (received): Insurance claim settlement – non-life and term life insurance. Form: none (the bank issues a FIRA); income tax: Depends on what it is; GST: Usually outside GST; reporting: Recorded only. https://fxlayerhq.com/purpose-codes/p0607 - P0608 (received): Life insurance claim settlement (other than term insurance). Form: none (the bank issues a FIRA); income tax: Depends on what it is; GST: Usually outside GST; reporting: Recorded only. https://fxlayerhq.com/purpose-codes/p0608 - P0609 (received): Standardised guarantee services. Form: none (the bank issues a FIRA); income tax: Your income; GST: Zero-rated export; reporting: Monthly EDF · EDPMS. https://fxlayerhq.com/purpose-codes/p0609 - P0610 (received): Premium for pension funds. Form: none (the bank issues a FIRA); income tax: Your income; GST: Zero-rated export; reporting: Monthly EDF · EDPMS. https://fxlayerhq.com/purpose-codes/p0610 - P0611 (received): Periodic pension entitlements paid by Indian pension funds. Form: none (the bank issues a FIRA); income tax: Depends on what it is; GST: Usually outside GST; reporting: Recorded only. https://fxlayerhq.com/purpose-codes/p0611 - P0612 (received): Invoking of standardised guarantees. Form: none (the bank issues a FIRA); income tax: Depends on what it is; GST: Usually outside GST; reporting: Recorded only. https://fxlayerhq.com/purpose-codes/p0612 - P0701 (received): Financial intermediation – bank charges, collection and LC charges. Form: none (the bank issues a FIRA); income tax: Your income; GST: Zero-rated export; reporting: Monthly EDF · EDPMS. https://fxlayerhq.com/purpose-codes/p0701 - P0702 (received): Investment banking – brokerage, underwriting commission. Form: none (the bank issues a FIRA); income tax: Your income; GST: Zero-rated export; reporting: Monthly EDF · EDPMS. https://fxlayerhq.com/purpose-codes/p0702 - P0703 (received): Auxiliary financial services – custodial, depository, regulatory fees. Form: none (the bank issues a FIRA); income tax: Your income; GST: Zero-rated export; reporting: Monthly EDF · EDPMS. https://fxlayerhq.com/purpose-codes/p0703 - P0801 (received): Hardware consultancy / implementation. Form: none (the bank issues a FIRA); income tax: Your income; GST: Zero-rated export; reporting: Monthly EDF · EDPMS. https://fxlayerhq.com/purpose-codes/p0801 - P0802 (received): Software consultancy / implementation (off-site software exports are P0807). Form: none (the bank issues a FIRA); income tax: Your income; GST: Zero-rated export; reporting: Monthly EDF · EDPMS. https://fxlayerhq.com/purpose-codes/p0802 - P0803 (received): Database and data processing charges. Form: none (the bank issues a FIRA); income tax: Your income; GST: Zero-rated export; reporting: Monthly EDF · EDPMS. https://fxlayerhq.com/purpose-codes/p0803 - P0804 (received): Repair and maintenance of computers and software. Form: none (the bank issues a FIRA); income tax: Your income; GST: Zero-rated export; reporting: Monthly EDF · EDPMS. https://fxlayerhq.com/purpose-codes/p0804 - P0805 (received): News agency services. Form: none (the bank issues a FIRA); income tax: Your income; GST: Zero-rated export; reporting: Monthly EDF · EDPMS. https://fxlayerhq.com/purpose-codes/p0805 - P0806 (received): Other information services – subscriptions. Form: none (the bank issues a FIRA); income tax: Your income; GST: Zero-rated export; reporting: Monthly EDF · EDPMS. https://fxlayerhq.com/purpose-codes/p0806 - P0807 (received): Off-site software exports (SOFTEX / EDF). Form: none (the bank issues a FIRA); income tax: Your income; GST: Zero-rated export; reporting: Monthly EDF · EDPMS. https://fxlayerhq.com/purpose-codes/p0807 - P0808 (received): Telecommunication services including e-mail and voice mail. Form: none (the bank issues a FIRA); income tax: Your income; GST: Zero-rated export; reporting: Monthly EDF · EDPMS. https://fxlayerhq.com/purpose-codes/p0808 - P0809 (received): Satellite services. Form: none (the bank issues a FIRA); income tax: Your income; GST: Zero-rated export; reporting: Monthly EDF · EDPMS. https://fxlayerhq.com/purpose-codes/p0809 - P0901 (received): Franchises services. Form: none (the bank issues a FIRA); income tax: Your income; GST: Zero-rated export; reporting: Monthly EDF · EDPMS. https://fxlayerhq.com/purpose-codes/p0901 - P0902 (received): Royalty / licence fee received for use of originals, patents, copyrights, trademarks. Form: none (the bank issues a FIRA); income tax: Your income; GST: Zero-rated export; reporting: Monthly EDF · EDPMS. https://fxlayerhq.com/purpose-codes/p0902 - P1002 (received): Trade related services – commission on exports / imports. Form: none (the bank issues a FIRA); income tax: Your income; GST: Zero-rated export; reporting: Monthly EDF · EDPMS. https://fxlayerhq.com/purpose-codes/p1002 - P1003 (received): Operational leasing without crew, charter hire – airlines. Form: none (the bank issues a FIRA); income tax: Your income; GST: Zero-rated export; reporting: Monthly EDF · EDPMS. https://fxlayerhq.com/purpose-codes/p1003 - P1004 (received): Legal services. Form: none (the bank issues a FIRA); income tax: Your income; GST: Zero-rated export; reporting: Monthly EDF · EDPMS. https://fxlayerhq.com/purpose-codes/p1004 - P1005 (received): Accounting, auditing, book keeping services. Form: none (the bank issues a FIRA); income tax: Your income; GST: Zero-rated export; reporting: Monthly EDF · EDPMS. https://fxlayerhq.com/purpose-codes/p1005 - P1006 (received): Business and management consultancy, public relations. Form: none (the bank issues a FIRA); income tax: Your income; GST: Zero-rated export; reporting: Monthly EDF · EDPMS. https://fxlayerhq.com/purpose-codes/p1006 - P1007 (received): Advertising, trade fair services. Form: none (the bank issues a FIRA); income tax: Your income; GST: Zero-rated export; reporting: Monthly EDF · EDPMS. https://fxlayerhq.com/purpose-codes/p1007 - P1008 (received): Research and development services. Form: none (the bank issues a FIRA); income tax: Your income; GST: Zero-rated export; reporting: Monthly EDF · EDPMS. https://fxlayerhq.com/purpose-codes/p1008 - P1009 (received): Architectural services. Form: none (the bank issues a FIRA); income tax: Your income; GST: Zero-rated export; reporting: Monthly EDF · EDPMS. https://fxlayerhq.com/purpose-codes/p1009 - P1010 (received): Agricultural services. Form: none (the bank issues a FIRA); income tax: Your income; GST: Zero-rated export; reporting: Monthly EDF · EDPMS. https://fxlayerhq.com/purpose-codes/p1010 - P1011 (received): Inward remittance for maintenance of offices in India. Form: none (the bank issues a FIRA); income tax: Not your income; GST: Not an export; reporting: No EDF. https://fxlayerhq.com/purpose-codes/p1011 - P1013 (received): Environmental services. Form: none (the bank issues a FIRA); income tax: Your income; GST: Zero-rated export; reporting: Monthly EDF · EDPMS. https://fxlayerhq.com/purpose-codes/p1013 - P1014 (received): Engineering services. Form: none (the bank issues a FIRA); income tax: Your income; GST: Zero-rated export; reporting: Monthly EDF · EDPMS. https://fxlayerhq.com/purpose-codes/p1014 - P1015 (received): Tax consulting services. Form: none (the bank issues a FIRA); income tax: Your income; GST: Zero-rated export; reporting: Monthly EDF · EDPMS. https://fxlayerhq.com/purpose-codes/p1015 - P1016 (received): Market research and public opinion polling. Form: none (the bank issues a FIRA); income tax: Your income; GST: Zero-rated export; reporting: Monthly EDF · EDPMS. https://fxlayerhq.com/purpose-codes/p1016 - P1017 (received): Publishing and printing services. Form: none (the bank issues a FIRA); income tax: Your income; GST: Zero-rated export; reporting: Monthly EDF · EDPMS. https://fxlayerhq.com/purpose-codes/p1017 - P1018 (received): Mining services. Form: none (the bank issues a FIRA); income tax: Your income; GST: Zero-rated export; reporting: Monthly EDF · EDPMS. https://fxlayerhq.com/purpose-codes/p1018 - P1019 (received): Commission agent services. Form: none (the bank issues a FIRA); income tax: Your income; GST: Zero-rated export; reporting: Monthly EDF · EDPMS. https://fxlayerhq.com/purpose-codes/p1019 - P1020 (received): Wholesale and retailing trade services. Form: none (the bank issues a FIRA); income tax: Your income; GST: Zero-rated export; reporting: Monthly EDF · EDPMS. https://fxlayerhq.com/purpose-codes/p1020 - P1021 (received): Operational leasing without crew, charter hire – shipping. Form: none (the bank issues a FIRA); income tax: Your income; GST: Zero-rated export; reporting: Monthly EDF · EDPMS. https://fxlayerhq.com/purpose-codes/p1021 - P1022 (received): Other technical services including scientific / space services. Form: none (the bank issues a FIRA); income tax: Your income; GST: Zero-rated export; reporting: Monthly EDF · EDPMS. https://fxlayerhq.com/purpose-codes/p1022 - P1099 (received): Other services not included elsewhere. Form: none (the bank issues a FIRA); income tax: Your income; GST: Zero-rated export; reporting: Monthly EDF · EDPMS. https://fxlayerhq.com/purpose-codes/p1099 - P1101 (received): Audio-visual services – film, video and animation production, distribution. Form: none (the bank issues a FIRA); income tax: Your income; GST: Zero-rated export; reporting: Monthly EDF · EDPMS. https://fxlayerhq.com/purpose-codes/p1101 - P1103 (received): Radio and television production, distribution and transmission. Form: none (the bank issues a FIRA); income tax: Your income; GST: Zero-rated export; reporting: Monthly EDF · EDPMS. https://fxlayerhq.com/purpose-codes/p1103 - P1104 (received): Entertainment services. Form: none (the bank issues a FIRA); income tax: Your income; GST: Zero-rated export; reporting: Monthly EDF · EDPMS. https://fxlayerhq.com/purpose-codes/p1104 - P1105 (received): Museums, library and archival services. Form: none (the bank issues a FIRA); income tax: Your income; GST: Zero-rated export; reporting: Monthly EDF · EDPMS. https://fxlayerhq.com/purpose-codes/p1105 - P1106 (received): Recreation and sporting activity services. Form: none (the bank issues a FIRA); income tax: Your income; GST: Zero-rated export; reporting: Monthly EDF · EDPMS. https://fxlayerhq.com/purpose-codes/p1106 - P1107 (received): Educational services (online courses, tutoring, training for non-residents). Form: none (the bank issues a FIRA); income tax: Your income; GST: Zero-rated export; reporting: Monthly EDF · EDPMS. https://fxlayerhq.com/purpose-codes/p1107 - P1108 (received): Health services (doctors, hospitals, paramedical – remote or on-site). Form: none (the bank issues a FIRA); income tax: Your income; GST: Zero-rated export; reporting: Monthly EDF · EDPMS. https://fxlayerhq.com/purpose-codes/p1108 - P1109 (received): Other personal, cultural and recreational services. Form: none (the bank issues a FIRA); income tax: Your income; GST: Zero-rated export; reporting: Monthly EDF · EDPMS. https://fxlayerhq.com/purpose-codes/p1109 - P1201 (received): Maintenance of foreign embassies in India. Form: none (the bank issues a FIRA); income tax: Depends on what it is; GST: Usually outside GST; reporting: Recorded only. https://fxlayerhq.com/purpose-codes/p1201 - P1203 (received): Maintenance of international institutions in India (IMF, World Bank, UNICEF). Form: none (the bank issues a FIRA); income tax: Depends on what it is; GST: Usually outside GST; reporting: Recorded only. https://fxlayerhq.com/purpose-codes/p1203 - P1301 (received): Family maintenance and savings from non-resident Indians. Form: none (the bank issues a FIRA); income tax: Depends on what it is; GST: Usually outside GST; reporting: Recorded only. https://fxlayerhq.com/purpose-codes/p1301 - P1302 (received): Personal gifts and donations. Form: none (the bank issues a FIRA); income tax: Depends on what it is; GST: Usually outside GST; reporting: Recorded only. https://fxlayerhq.com/purpose-codes/p1302 - P1303 (received): Donations to religious and charitable institutions in India. Form: none (the bank issues a FIRA); income tax: Depends on what it is; GST: Usually outside GST; reporting: Recorded only. https://fxlayerhq.com/purpose-codes/p1303 - P1304 (received): Grants and donations to governments and government charities. Form: none (the bank issues a FIRA); income tax: Depends on what it is; GST: Usually outside GST; reporting: Recorded only. https://fxlayerhq.com/purpose-codes/p1304 - P1306 (received): Receipts / refund of taxes. Form: none (the bank issues a FIRA); income tax: Depends on what it is; GST: Usually outside GST; reporting: Recorded only. https://fxlayerhq.com/purpose-codes/p1306 - P1307 (received): Migrant transfers including personal effects. Form: none (the bank issues a FIRA); income tax: Depends on what it is; GST: Usually outside GST; reporting: Recorded only. https://fxlayerhq.com/purpose-codes/p1307 - P1401 (received): Compensation of employees (salary from a foreign employer). Form: none (the bank issues a FIRA); income tax: Depends on what it is; GST: Usually outside GST; reporting: Recorded only. https://fxlayerhq.com/purpose-codes/p1401 - P1403 (received): Interest on loans extended to non-residents. Form: none (the bank issues a FIRA); income tax: Depends on what it is; GST: Usually outside GST; reporting: Recorded only. https://fxlayerhq.com/purpose-codes/p1403 - P1405 (received): Interest received by AD banks on their own investments. Form: none (the bank issues a FIRA); income tax: Depends on what it is; GST: Usually outside GST; reporting: Recorded only. https://fxlayerhq.com/purpose-codes/p1405 - P1408 (received): Profit remitted by branches of Indian FDI enterprises abroad. Form: none (the bank issues a FIRA); income tax: Depends on what it is; GST: Usually outside GST; reporting: Recorded only. https://fxlayerhq.com/purpose-codes/p1408 - P1409 (received): Dividends from Indian FDI enterprises abroad (other than branches). Form: none (the bank issues a FIRA); income tax: Depends on what it is; GST: Usually outside GST; reporting: Recorded only. https://fxlayerhq.com/purpose-codes/p1409 - P1410 (received): Interest paid by Indian FDI enterprises abroad to their Indian parent. Form: none (the bank issues a FIRA); income tax: Depends on what it is; GST: Usually outside GST; reporting: Recorded only. https://fxlayerhq.com/purpose-codes/p1410 - P1411 (received): Interest on Indian portfolio investment abroad. Form: none (the bank issues a FIRA); income tax: Depends on what it is; GST: Usually outside GST; reporting: Recorded only. https://fxlayerhq.com/purpose-codes/p1411 - P1412 (received): Dividends on Indian portfolio investment abroad. Form: none (the bank issues a FIRA); income tax: Depends on what it is; GST: Usually outside GST; reporting: Recorded only. https://fxlayerhq.com/purpose-codes/p1412 - P1499 (received): Other income receipts. Form: none (the bank issues a FIRA); income tax: Depends on what it is; GST: Usually outside GST; reporting: Recorded only. https://fxlayerhq.com/purpose-codes/p1499 - P1501 (received): Refund / rebate on account of imports. Form: none (the bank issues a FIRA); income tax: Not income; GST: Follows the original; reporting: Reverses a payment. https://fxlayerhq.com/purpose-codes/p1501 - P1502 (received): Reversal of wrong entries, refund of amount remitted for non-imports. Form: none (the bank issues a FIRA); income tax: Not income; GST: Follows the original; reporting: Reverses a payment. https://fxlayerhq.com/purpose-codes/p1502 - P1503 (received): Receipts by residents under an international bidding process. Form: none (the bank issues a FIRA); income tax: Depends on what it is; GST: Usually outside GST; reporting: Recorded only. https://fxlayerhq.com/purpose-codes/p1503 - P1505 (received): Deemed exports (between SEZ, EPZ and the domestic tariff area). Form: none (the bank issues a FIRA); income tax: Your income; GST: Zero-rated / IGST; reporting: SEZ / domestic area. https://fxlayerhq.com/purpose-codes/p1505 - P1601 (received): Maintenance and repair of vessels, ships, boats. Form: none (the bank issues a FIRA); income tax: Your income; GST: Zero-rated export; reporting: Monthly EDF · EDPMS. https://fxlayerhq.com/purpose-codes/p1601 - P1602 (received): Maintenance and repair of aircraft. Form: none (the bank issues a FIRA); income tax: Your income; GST: Zero-rated export; reporting: Monthly EDF · EDPMS. https://fxlayerhq.com/purpose-codes/p1602 - P1701 (received): Processing of goods (job work in India). Form: none (the bank issues a FIRA); income tax: Your income; GST: Zero-rated export; reporting: Monthly EDF · EDPMS. https://fxlayerhq.com/purpose-codes/p1701 - S0001 (paid): Indian portfolio investment abroad – equity shares. Form: Form A2; Form 145 / 146: Not needed: on the specified list.; income tax: Specified list; GST: Usually outside GST; reporting: Capital account. https://fxlayerhq.com/purpose-codes/s0001 - S0002 (paid): Indian portfolio investment abroad – debt instruments. Form: Form A2; Form 145 / 146: Not needed: on the specified list.; income tax: Specified list; GST: Usually outside GST; reporting: Capital account. https://fxlayerhq.com/purpose-codes/s0002 - S0003 (paid): Indian direct investment abroad – equity shares. Form: Form A2; Form 145 / 146: Not needed: on the specified list.; income tax: Specified list; GST: Usually outside GST; reporting: Capital account. https://fxlayerhq.com/purpose-codes/s0003 - S0004 (paid): Indian direct investment abroad – debt instruments. Form: Form A2; Form 145 / 146: Not needed: on the specified list.; income tax: Specified list; GST: Usually outside GST; reporting: Capital account. https://fxlayerhq.com/purpose-codes/s0004 - S0005 (paid): Indian investment abroad in real estate. Form: Form A2; Form 145 / 146: Not needed: on the specified list.; income tax: Specified list; GST: Usually outside GST; reporting: Capital account. https://fxlayerhq.com/purpose-codes/s0005 - S0006 (paid): Repatriation of foreign direct investment in India – equity shares. Form: Form A2; Form 145 / 146: Part D where nothing is chargeable; Part A or C (with Form 146) where tax is due.; income tax: Case by case; GST: Usually outside GST; reporting: Capital account. https://fxlayerhq.com/purpose-codes/s0006 - S0007 (paid): Repatriation of foreign direct investment in India – debt instruments. Form: Form A2; Form 145 / 146: Part D where nothing is chargeable; Part A or C (with Form 146) where tax is due.; income tax: Case by case; GST: Usually outside GST; reporting: Capital account. https://fxlayerhq.com/purpose-codes/s0007 - S0008 (paid): Repatriation of foreign direct investment in India – real estate. Form: Form A2; Form 145 / 146: Part D where nothing is chargeable; Part A or C (with Form 146) where tax is due.; income tax: Case by case; GST: Usually outside GST; reporting: Capital account. https://fxlayerhq.com/purpose-codes/s0008 - S0009 (paid): Repatriation of foreign portfolio investment in India – equity shares. Form: Form A2; Form 145 / 146: Part D where nothing is chargeable; Part A or C (with Form 146) where tax is due.; income tax: Case by case; GST: Usually outside GST; reporting: Capital account. https://fxlayerhq.com/purpose-codes/s0009 - S0010 (paid): Repatriation of foreign portfolio investment in India – debt instruments. Form: Form A2; Form 145 / 146: Part D where nothing is chargeable; Part A or C (with Form 146) where tax is due.; income tax: Case by case; GST: Usually outside GST; reporting: Capital account. https://fxlayerhq.com/purpose-codes/s0010 - S0011 (paid): Loans extended to non-residents. Form: Form A2; Form 145 / 146: Not needed: on the specified list.; income tax: Specified list; GST: Usually outside GST; reporting: Capital account. https://fxlayerhq.com/purpose-codes/s0011 - S0012 (paid): Repayment of long and medium term loans from non-residents (ECB). Form: Form A2; Form 145 / 146: Part D where nothing is chargeable; Part A or C (with Form 146) where tax is due.; income tax: Case by case; GST: Usually outside GST; reporting: Capital account. https://fxlayerhq.com/purpose-codes/s0012 - S0013 (paid): Repayment of short term loans from non-residents (trade credit). Form: Form A2; Form 145 / 146: Part D where nothing is chargeable; Part A or C (with Form 146) where tax is due.; income tax: Case by case; GST: Usually outside GST; reporting: Capital account. https://fxlayerhq.com/purpose-codes/s0013 - S0014 (paid): Repatriation of non-resident deposits (FCNR(B) / NR(E)RA). Form: Form A2; Form 145 / 146: Part D where nothing is chargeable; Part A or C (with Form 146) where tax is due.; income tax: Case by case; GST: Usually outside GST; reporting: Capital account. https://fxlayerhq.com/purpose-codes/s0014 - S0015 (paid): Repayment of loans and overdrafts taken by AD banks on their own account. Form: Form A2; Form 145 / 146: Part D where nothing is chargeable; Part A or C (with Form 146) where tax is due.; income tax: Case by case; GST: Usually outside GST; reporting: Capital account. https://fxlayerhq.com/purpose-codes/s0015 - S0016 (paid): Sale of a foreign currency against another foreign currency. Form: Form A2; Form 145 / 146: Part D where nothing is chargeable; Part A or C (with Form 146) where tax is due.; income tax: Case by case; GST: Usually outside GST; reporting: Capital account. https://fxlayerhq.com/purpose-codes/s0016 - S0017 (paid): Purchase of intangible assets, land or natural resources – Government. Form: Form A2; Form 145 / 146: Part D where nothing is chargeable; Part A or C (with Form 146) where tax is due.; income tax: Case by case; GST: Usually outside GST; reporting: Capital account. https://fxlayerhq.com/purpose-codes/s0017 - S0019 (paid): Purchase of intangible assets (patents, copyrights, trademarks) – non-Government. Form: Form A2; Form 145 / 146: Part D where nothing is chargeable; Part A or C (with Form 146) where tax is due.; income tax: Case by case; GST: Usually outside GST; reporting: Capital account. https://fxlayerhq.com/purpose-codes/s0019 - S0020 (paid): Financial derivatives – margin, premium and settlement payments. Form: Form A2; Form 145 / 146: Part D where nothing is chargeable; Part A or C (with Form 146) where tax is due.; income tax: Case by case; GST: Usually outside GST; reporting: Capital account. https://fxlayerhq.com/purpose-codes/s0020 - S0021 (paid): Payments on sale of shares under an employee stock option. Form: Form A2; Form 145 / 146: Part D where nothing is chargeable; Part A or C (with Form 146) where tax is due.; income tax: Case by case; GST: Usually outside GST; reporting: Capital account. https://fxlayerhq.com/purpose-codes/s0021 - S0022 (paid): Investment in Indian Depository Receipts (IDRs). Form: Form A2; Form 145 / 146: Part D where nothing is chargeable; Part A or C (with Form 146) where tax is due.; income tax: Case by case; GST: Usually outside GST; reporting: Capital account. https://fxlayerhq.com/purpose-codes/s0022 - S0023 (paid): Opening of a foreign currency account abroad with a bank. Form: Form A2; Form 145 / 146: Part D where nothing is chargeable; Part A or C (with Form 146) where tax is due.; income tax: Case by case; GST: Usually outside GST; reporting: Capital account. https://fxlayerhq.com/purpose-codes/s0023 - S0024 (paid): External assistance extended by India (loans to foreign governments). Form: Form A2; Form 145 / 146: Part D where nothing is chargeable; Part A or C (with Form 146) where tax is due.; income tax: Case by case; GST: Usually outside GST; reporting: Capital account. https://fxlayerhq.com/purpose-codes/s0024 - S0025 (paid): Repayments of external assistance received by India. Form: Form A2; Form 145 / 146: Part D where nothing is chargeable; Part A or C (with Form 146) where tax is due.; income tax: Case by case; GST: Usually outside GST; reporting: Capital account. https://fxlayerhq.com/purpose-codes/s0025 - S0026 (paid): Capital transfers (guarantees, investment grants, large claims) – Government. Form: Form A2; Form 145 / 146: Part D where nothing is chargeable; Part A or C (with Form 146) where tax is due.; income tax: Case by case; GST: Usually outside GST; reporting: Capital account. https://fxlayerhq.com/purpose-codes/s0026 - S0027 (paid): Capital transfers (guarantees, investment grants, large claims) – non-Government. Form: Form A2; Form 145 / 146: Part D where nothing is chargeable; Part A or C (with Form 146) where tax is due.; income tax: Case by case; GST: Usually outside GST; reporting: Capital account. https://fxlayerhq.com/purpose-codes/s0027 - S0099 (paid): Other capital payments not included elsewhere. Form: Form A2; Form 145 / 146: Part D where nothing is chargeable; Part A or C (with Form 146) where tax is due.; income tax: Case by case; GST: Usually outside GST; reporting: Capital account. https://fxlayerhq.com/purpose-codes/s0099 - S0101 (paid): Advance payment against imports (other than Nepal and Bhutan). Form: Form A1; Form 145 / 146: Not needed: on the specified list.; income tax: Goods (specified list); GST: IGST at customs; reporting: IDPMS · advance. https://fxlayerhq.com/purpose-codes/s0101 - S0102 (paid): Payment towards imports — settlement of invoice (other than Nepal and Bhutan). Form: Form A1; Form 145 / 146: Not needed: on the specified list.; income tax: Goods (specified list); GST: IGST at customs; reporting: IDPMS · Bill of Entry. https://fxlayerhq.com/purpose-codes/s0102 - S0103 (paid): Imports by diplomatic missions (other than Nepal and Bhutan). Form: Form A1; Form 145 / 146: Not needed: on the specified list.; income tax: Goods (specified list); GST: IGST at customs; reporting: IDPMS · Bill of Entry. https://fxlayerhq.com/purpose-codes/s0103 - S0104 (paid): Intermediary trade / transit trade (third-country export passing through India). Form: Form A1; Form 145 / 146: Not needed: on the specified list.; income tax: Goods (specified list); GST: Depends; reporting: IDPMS · Bill of Entry. https://fxlayerhq.com/purpose-codes/s0104 - S0108 (paid): Goods acquired under merchanting / payment against the import leg of merchanting trade. Form: Form A2; Form 145 / 146: Usually Part D: not chargeable to tax.; income tax: Goods (merchanting); GST: Outside GST; reporting: MTT · same AD bank. https://fxlayerhq.com/purpose-codes/s0108 - S0109 (paid): Payments for imports from Nepal and Bhutan. Form: Form A1; Form 145 / 146: Part D, if the bank asks: not chargeable to tax.; income tax: Goods; GST: IGST at customs; reporting: IDPMS · Bill of Entry. https://fxlayerhq.com/purpose-codes/s0109 - S0201 (paid): Surplus freight / passenger fare of foreign shipping companies operating in India. Form: Form A2; Form 145 / 146: Part D: not chargeable in the payer's hands.; income tax: Shipping / airline; GST: No GST; reporting: Form A2 · Form 145. https://fxlayerhq.com/purpose-codes/s0201 - S0202 (paid): Operating expenses of Indian shipping companies operating abroad. Form: Form A2; Form 145 / 146: Not needed: on the specified list.; income tax: Specified list; GST: No GST; reporting: Form A2 · Form 145. https://fxlayerhq.com/purpose-codes/s0202 - S0203 (paid): Freight on imports – shipping companies. Form: Form A2; Form 145 / 146: Part D: not chargeable in the payer's hands.; income tax: Shipping / airline; GST: Check with your CA; reporting: Form A2 · Form 145. https://fxlayerhq.com/purpose-codes/s0203 - S0204 (paid): Freight on exports – shipping companies. Form: Form A2; Form 145 / 146: Part D: not chargeable in the payer's hands.; income tax: Shipping / airline; GST: No GST; reporting: Form A2 · Form 145. https://fxlayerhq.com/purpose-codes/s0204 - S0205 (paid): Operational leasing / rental of vessels with crew – shipping companies. Form: Form A2; Form 145 / 146: Part D: not chargeable in the payer's hands.; income tax: Shipping / airline; GST: Check with your CA; reporting: Form A2 · Form 145. https://fxlayerhq.com/purpose-codes/s0205 - S0206 (paid): Booking of passages abroad – shipping companies. Form: Form A2; Form 145 / 146: Part D: not chargeable in the payer's hands.; income tax: Shipping / airline; GST: No GST; reporting: Form A2 · Form 145. https://fxlayerhq.com/purpose-codes/s0206 - S0207 (paid): Surplus freight / passenger fare of foreign airlines operating in India. Form: Form A2; Form 145 / 146: Part D: not chargeable in the payer's hands.; income tax: Shipping / airline; GST: No GST; reporting: Form A2 · Form 145. https://fxlayerhq.com/purpose-codes/s0207 - S0208 (paid): Operating expenses of Indian airlines operating abroad. Form: Form A2; Form 145 / 146: Not needed: on the specified list.; income tax: Specified list; GST: No GST; reporting: Form A2 · Form 145. https://fxlayerhq.com/purpose-codes/s0208 - S0209 (paid): Freight on imports – airlines. Form: Form A2; Form 145 / 146: Part D: not chargeable in the payer's hands.; income tax: Shipping / airline; GST: Check with your CA; reporting: Form A2 · Form 145. https://fxlayerhq.com/purpose-codes/s0209 - S0210 (paid): Freight on exports – airlines. Form: Form A2; Form 145 / 146: Part D: not chargeable in the payer's hands.; income tax: Shipping / airline; GST: No GST; reporting: Form A2 · Form 145. https://fxlayerhq.com/purpose-codes/s0210 - S0211 (paid): Operational leasing / rental with crew – airlines. Form: Form A2; Form 145 / 146: Part D: not chargeable in the payer's hands.; income tax: Shipping / airline; GST: Check with your CA; reporting: Form A2 · Form 145. https://fxlayerhq.com/purpose-codes/s0211 - S0212 (paid): Booking of passages abroad – airlines. Form: Form A2; Form 145 / 146: Not needed: on the specified list.; income tax: Specified list; GST: No GST; reporting: Form A2 · Form 145. https://fxlayerhq.com/purpose-codes/s0212 - S0214 (paid): Stevedoring, demurrage, port handling charges – shipping. Form: Form A2; Form 145 / 146: Part D: not chargeable without a permanent establishment.; income tax: Business income; GST: Reverse charge 18%; reporting: Form A2 · Form 145. https://fxlayerhq.com/purpose-codes/s0214 - S0215 (paid): Stevedoring, demurrage, port handling charges – airlines. Form: Form A2; Form 145 / 146: Part D: not chargeable without a permanent establishment.; income tax: Business income; GST: Reverse charge 18%; reporting: Form A2 · Form 145. https://fxlayerhq.com/purpose-codes/s0215 - S0216 (paid): Passenger payments – shipping companies. Form: Form A2; Form 145 / 146: Part D: not chargeable in the payer's hands.; income tax: Shipping / airline; GST: No GST; reporting: Form A2 · Form 145. https://fxlayerhq.com/purpose-codes/s0216 - S0217 (paid): Other payments by shipping companies. Form: Form A2; Form 145 / 146: Part D: not chargeable without a permanent establishment.; income tax: Business income; GST: Check with your CA; reporting: Form A2 · Form 145. https://fxlayerhq.com/purpose-codes/s0217 - S0218 (paid): Passenger payments – airlines. Form: Form A2; Form 145 / 146: Part D: not chargeable in the payer's hands.; income tax: Shipping / airline; GST: No GST; reporting: Form A2 · Form 145. https://fxlayerhq.com/purpose-codes/s0218 - S0219 (paid): Other payments by airlines. Form: Form A2; Form 145 / 146: Part D: not chargeable without a permanent establishment.; income tax: Business income; GST: Check with your CA; reporting: Form A2 · Form 145. https://fxlayerhq.com/purpose-codes/s0219 - S0220 (paid): Freight under other modes of transport (road, rail, inland waterways, pipeline). Form: Form A2; Form 145 / 146: Part D: not chargeable without a permanent establishment.; income tax: Business income; GST: Reverse charge 18%; reporting: Form A2 · Form 145. https://fxlayerhq.com/purpose-codes/s0220 - S0221 (paid): Passenger fare under other modes of transport (road, rail, inland waterways, pipeline). Form: Form A2; Form 145 / 146: Part D: not chargeable without a permanent establishment.; income tax: Business income; GST: No GST; reporting: Form A2 · Form 145. https://fxlayerhq.com/purpose-codes/s0221 - S0222 (paid): Postal and courier services by air. Form: Form A2; Form 145 / 146: Part D: not chargeable without a permanent establishment.; income tax: Business income; GST: Reverse charge 18%; reporting: Form A2 · Form 145. https://fxlayerhq.com/purpose-codes/s0222 - S0223 (paid): Postal and courier services by sea. Form: Form A2; Form 145 / 146: Part D: not chargeable without a permanent establishment.; income tax: Business income; GST: Reverse charge 18%; reporting: Form A2 · Form 145. https://fxlayerhq.com/purpose-codes/s0223 - S0224 (paid): Postal and courier services by other modes. Form: Form A2; Form 145 / 146: Part D: not chargeable without a permanent establishment.; income tax: Business income; GST: Reverse charge 18%; reporting: Form A2 · Form 145. https://fxlayerhq.com/purpose-codes/s0224 - S0301 (paid): Business travel. Form: Form A2; Form 145 / 146: Not needed: on the specified list.; income tax: Specified list; GST: No GST; reporting: Form A2 · Form 145. https://fxlayerhq.com/purpose-codes/s0301 - S0303 (paid): Travel for pilgrimage. Form: Form A2; Form 145 / 146: Not needed: on the specified list.; income tax: Specified list; GST: No GST; reporting: Form A2 · Form 145. https://fxlayerhq.com/purpose-codes/s0303 - S0304 (paid): Travel for medical treatment. Form: Form A2; Form 145 / 146: Not needed: on the specified list.; income tax: Specified list; GST: No GST; reporting: Form A2 · Form 145. https://fxlayerhq.com/purpose-codes/s0304 - S0305 (paid): Travel for education (including fees and hostel expenses). Form: Form A2; Form 145 / 146: Not needed: on the specified list.; income tax: Specified list; GST: No GST; reporting: Form A2 · Form 145. https://fxlayerhq.com/purpose-codes/s0305 - S0306 (paid): Other travel (holiday trips, international credit card settlement). Form: Form A2; Form 145 / 146: Part D: not chargeable without a permanent establishment.; income tax: Business income; GST: No GST; reporting: Form A2 · Form 145. https://fxlayerhq.com/purpose-codes/s0306 - S0501 (paid): Construction of projects abroad by Indian companies. Form: Form A2; Form 145 / 146: Not needed: on the specified list.; income tax: Specified list; GST: Reverse charge 18%; reporting: Form A2 · Form 145. https://fxlayerhq.com/purpose-codes/s0501 - S0502 (paid): Cost of construction of projects executed by foreign companies in India. Form: Form A2; Form 145 / 146: Part D: not chargeable without a permanent establishment.; income tax: Business income; GST: Reverse charge 18%; reporting: Form A2 · Form 145. https://fxlayerhq.com/purpose-codes/s0502 - S0601 (paid): Life insurance premium (other than term insurance). Form: Form A2; Form 145 / 146: Part D: not chargeable without a permanent establishment.; income tax: Business income; GST: Check with your CA; reporting: Form A2 · Form 145. https://fxlayerhq.com/purpose-codes/s0601 - S0602 (paid): Freight insurance relating to import and export of goods. Form: Form A2; Form 145 / 146: Not needed: on the specified list.; income tax: Specified list; GST: Reverse charge 18%; reporting: Form A2 · Form 145. https://fxlayerhq.com/purpose-codes/s0602 - S0603 (paid): Other general insurance premium including reinsurance and term life insurance. Form: Form A2; Form 145 / 146: Part D: not chargeable without a permanent establishment.; income tax: Business income; GST: Check with your CA; reporting: Form A2 · Form 145. https://fxlayerhq.com/purpose-codes/s0603 - S0605 (paid): Auxiliary insurance services including commission. Form: Form A2; Form 145 / 146: Part D: not chargeable without a permanent establishment.; income tax: Business income; GST: Reverse charge 18%; reporting: Form A2 · Form 145. https://fxlayerhq.com/purpose-codes/s0605 - S0607 (paid): Insurance claim settlement – non-life and term life insurance. Form: Form A2; Form 145 / 146: Part D where nothing is chargeable; Part A or C (with Form 146) where tax is due.; income tax: Case by case; GST: Usually outside GST; reporting: Recorded only. https://fxlayerhq.com/purpose-codes/s0607 - S0608 (paid): Life insurance claim settlement. Form: Form A2; Form 145 / 146: Part D where nothing is chargeable; Part A or C (with Form 146) where tax is due.; income tax: Case by case; GST: Usually outside GST; reporting: Recorded only. https://fxlayerhq.com/purpose-codes/s0608 - S0609 (paid): Standardised guarantee services. Form: Form A2; Form 145 / 146: Depends on the nature your CA settles: Part A, C or D.; income tax: Depends on facts; GST: Check with your CA; reporting: Form A2 · Form 145. https://fxlayerhq.com/purpose-codes/s0609 - S0610 (paid): Premium for pension funds. Form: Form A2; Form 145 / 146: Part D: not chargeable without a permanent establishment.; income tax: Business income; GST: Check with your CA; reporting: Form A2 · Form 145. https://fxlayerhq.com/purpose-codes/s0610 - S0611 (paid): Periodic pension entitlements paid by Indian pension funds. Form: Form A2; Form 145 / 146: Part D where nothing is chargeable; Part A or C (with Form 146) where tax is due.; income tax: Case by case; GST: Usually outside GST; reporting: Recorded only. https://fxlayerhq.com/purpose-codes/s0611 - S0612 (paid): Invoking of standardised guarantees. Form: Form A2; Form 145 / 146: Part D where nothing is chargeable; Part A or C (with Form 146) where tax is due.; income tax: Case by case; GST: Usually outside GST; reporting: Recorded only. https://fxlayerhq.com/purpose-codes/s0612 - S0701 (paid): Financial intermediation – bank charges, collection and LC charges. Form: Form A2; Form 145 / 146: Part D: not chargeable without a permanent establishment.; income tax: Business income; GST: Reverse charge 18%; reporting: Form A2 · Form 145. https://fxlayerhq.com/purpose-codes/s0701 - S0702 (paid): Investment banking – brokerage, underwriting commission. Form: Form A2; Form 145 / 146: Part D: not chargeable without a permanent establishment.; income tax: Business income; GST: Reverse charge 18%; reporting: Form A2 · Form 145. https://fxlayerhq.com/purpose-codes/s0702 - S0703 (paid): Auxiliary financial services – custodial, depository, regulatory fees. Form: Form A2; Form 145 / 146: Part D: not chargeable without a permanent establishment.; income tax: Business income; GST: Reverse charge 18%; reporting: Form A2 · Form 145. https://fxlayerhq.com/purpose-codes/s0703 - S0801 (paid): Hardware consultancy / implementation. Form: Form A2; Form 145 / 146: Part A up to ₹5 lakh in the year; above it Part C with Form 146; Part D where a treaty protects the fee.; income tax: Technical services; GST: Reverse charge 18%; reporting: Form A2 · Form 145. https://fxlayerhq.com/purpose-codes/s0801 - S0802 (paid): Software consultancy / implementation (incl. SaaS subscriptions). Form: Form A2; Form 145 / 146: Part D with the treaty papers; otherwise Part A or C at the Act rate.; income tax: Software / SaaS; GST: Reverse charge 18%; reporting: Form A2 · Form 145. https://fxlayerhq.com/purpose-codes/s0802 - S0803 (paid): Database and data processing charges (cloud hosting). Form: Form A2; Form 145 / 146: Part D with the treaty papers; otherwise Part A or C at the Act rate.; income tax: Software / SaaS; GST: Reverse charge 18%; reporting: Form A2 · Form 145. https://fxlayerhq.com/purpose-codes/s0803 - S0804 (paid): Repair and maintenance of computers and software (AMC). Form: Form A2; Form 145 / 146: Part A up to ₹5 lakh in the year; above it Part C with Form 146; Part D where a treaty protects the fee.; income tax: Technical services; GST: Reverse charge 18%; reporting: Form A2 · Form 145. https://fxlayerhq.com/purpose-codes/s0804 - S0805 (paid): News agency services. Form: Form A2; Form 145 / 146: Part D: not chargeable without a permanent establishment.; income tax: Business income; GST: Reverse charge 18%; reporting: Form A2 · Form 145. https://fxlayerhq.com/purpose-codes/s0805 - S0806 (paid): Other information services – subscriptions to periodicals, databases. Form: Form A2; Form 145 / 146: Part D: not chargeable without a permanent establishment.; income tax: Business income; GST: Reverse charge 18%; reporting: Form A2 · Form 145. https://fxlayerhq.com/purpose-codes/s0806 - S0807 (paid): Off-site software imports (electronically delivered licences). Form: Form A2; Form 145 / 146: Part D with the treaty papers; otherwise Part A or C at the Act rate.; income tax: Software / SaaS; GST: Reverse charge 18%; reporting: Form A2 · Form 145. https://fxlayerhq.com/purpose-codes/s0807 - S0808 (paid): Telecommunication services including e-mail and voice mail. Form: Form A2; Form 145 / 146: Part D: not chargeable without a permanent establishment.; income tax: Business income; GST: Reverse charge 18%; reporting: Form A2 · Form 145. https://fxlayerhq.com/purpose-codes/s0808 - S0809 (paid): Satellite services. Form: Form A2; Form 145 / 146: Part A up to ₹5 lakh paid to the payee in the year; above it Part C with a CA's Form 146 (or Part B with a tax officer's certificate).; income tax: Royalty; GST: Reverse charge 18%; reporting: Form A2 · Form 145. https://fxlayerhq.com/purpose-codes/s0809 - S0901 (paid): Franchises services. Form: Form A2; Form 145 / 146: Part A up to ₹5 lakh paid to the payee in the year; above it Part C with a CA's Form 146 (or Part B with a tax officer's certificate).; income tax: Royalty; GST: Reverse charge 18%; reporting: Form A2 · Form 145. https://fxlayerhq.com/purpose-codes/s0901 - S0902 (paid): Royalty / licence fee for use of originals, patents, copyrights, trademarks. Form: Form A2; Form 145 / 146: Part A up to ₹5 lakh paid to the payee in the year; above it Part C with a CA's Form 146 (or Part B with a tax officer's certificate).; income tax: Royalty; GST: Reverse charge 18%; reporting: Form A2 · Form 145. https://fxlayerhq.com/purpose-codes/s0902 - S1002 (paid): Trade related services – commission on exports / imports. Form: Form A2; Form 145 / 146: Part D: not chargeable without a permanent establishment.; income tax: Business income; GST: Reverse charge 18%; reporting: Form A2 · Form 145. https://fxlayerhq.com/purpose-codes/s1002 - S1003 (paid): Operational leasing without crew, charter hire – airlines. Form: Form A2; Form 145 / 146: Part A up to ₹5 lakh paid to the payee in the year; above it Part C with a CA's Form 146 (or Part B with a tax officer's certificate).; income tax: Royalty; GST: Reverse charge 18%; reporting: Form A2 · Form 145. https://fxlayerhq.com/purpose-codes/s1003 - S1004 (paid): Legal services. Form: Form A2; Form 145 / 146: Part A up to ₹5 lakh in the year; above it Part C with Form 146; Part D where a treaty protects the fee.; income tax: Technical services; GST: Reverse charge 18%; reporting: Form A2 · Form 145. https://fxlayerhq.com/purpose-codes/s1004 - S1005 (paid): Accounting, auditing, book keeping services. Form: Form A2; Form 145 / 146: Part A up to ₹5 lakh in the year; above it Part C with Form 146; Part D where a treaty protects the fee.; income tax: Technical services; GST: Reverse charge 18%; reporting: Form A2 · Form 145. https://fxlayerhq.com/purpose-codes/s1005 - S1006 (paid): Business and management consultancy, public relations. Form: Form A2; Form 145 / 146: Part A up to ₹5 lakh in the year; above it Part C with Form 146; Part D where a treaty protects the fee.; income tax: Technical services; GST: Reverse charge 18%; reporting: Form A2 · Form 145. https://fxlayerhq.com/purpose-codes/s1006 - S1007 (paid): Advertising, trade fair services (incl. online advertising). Form: Form A2; Form 145 / 146: Part D: not chargeable without a permanent establishment.; income tax: Business income; GST: Reverse charge 18%; reporting: Form A2 · Form 145. https://fxlayerhq.com/purpose-codes/s1007 - S1008 (paid): Research and development services. Form: Form A2; Form 145 / 146: Part A up to ₹5 lakh in the year; above it Part C with Form 146; Part D where a treaty protects the fee.; income tax: Technical services; GST: Reverse charge 18%; reporting: Form A2 · Form 145. https://fxlayerhq.com/purpose-codes/s1008 - S1009 (paid): Architectural services. Form: Form A2; Form 145 / 146: Part A up to ₹5 lakh in the year; above it Part C with Form 146; Part D where a treaty protects the fee.; income tax: Technical services; GST: Reverse charge 18%; reporting: Form A2 · Form 145. https://fxlayerhq.com/purpose-codes/s1009 - S1010 (paid): Agricultural services. Form: Form A2; Form 145 / 146: Part D: not chargeable without a permanent establishment.; income tax: Business income; GST: Reverse charge 18%; reporting: Form A2 · Form 145. https://fxlayerhq.com/purpose-codes/s1010 - S1011 (paid): Maintenance of offices abroad. Form: Form A2; Form 145 / 146: Not needed: on the specified list.; income tax: Specified list; GST: No GST; reporting: Form A2 · Form 145. https://fxlayerhq.com/purpose-codes/s1011 - S1013 (paid): Environmental services. Form: Form A2; Form 145 / 146: Part D: not chargeable without a permanent establishment.; income tax: Business income; GST: Reverse charge 18%; reporting: Form A2 · Form 145. https://fxlayerhq.com/purpose-codes/s1013 - S1014 (paid): Engineering services. Form: Form A2; Form 145 / 146: Part A up to ₹5 lakh in the year; above it Part C with Form 146; Part D where a treaty protects the fee.; income tax: Technical services; GST: Reverse charge 18%; reporting: Form A2 · Form 145. https://fxlayerhq.com/purpose-codes/s1014 - S1015 (paid): Tax consulting services. Form: Form A2; Form 145 / 146: Part A up to ₹5 lakh in the year; above it Part C with Form 146; Part D where a treaty protects the fee.; income tax: Technical services; GST: Reverse charge 18%; reporting: Form A2 · Form 145. https://fxlayerhq.com/purpose-codes/s1015 - S1016 (paid): Market research and public opinion polling. Form: Form A2; Form 145 / 146: Part A up to ₹5 lakh in the year; above it Part C with Form 146; Part D where a treaty protects the fee.; income tax: Technical services; GST: Reverse charge 18%; reporting: Form A2 · Form 145. https://fxlayerhq.com/purpose-codes/s1016 - S1017 (paid): Publishing and printing services. Form: Form A2; Form 145 / 146: Part D: not chargeable without a permanent establishment.; income tax: Business income; GST: Reverse charge 18%; reporting: Form A2 · Form 145. https://fxlayerhq.com/purpose-codes/s1017 - S1018 (paid): Mining services. Form: Form A2; Form 145 / 146: Part D: not chargeable without a permanent establishment.; income tax: Business income; GST: Reverse charge 18%; reporting: Form A2 · Form 145. https://fxlayerhq.com/purpose-codes/s1018 - S1020 (paid): Commission agent services. Form: Form A2; Form 145 / 146: Part D: not chargeable without a permanent establishment.; income tax: Business income; GST: Reverse charge 18%; reporting: Form A2 · Form 145. https://fxlayerhq.com/purpose-codes/s1020 - S1021 (paid): Wholesale and retailing trade services. Form: Form A2; Form 145 / 146: Part D: not chargeable without a permanent establishment.; income tax: Business income; GST: Reverse charge 18%; reporting: Form A2 · Form 145. https://fxlayerhq.com/purpose-codes/s1021 - S1022 (paid): Operational leasing without crew, charter hire – shipping. Form: Form A2; Form 145 / 146: Part A up to ₹5 lakh paid to the payee in the year; above it Part C with a CA's Form 146 (or Part B with a tax officer's certificate).; income tax: Royalty; GST: Reverse charge 18%; reporting: Form A2 · Form 145. https://fxlayerhq.com/purpose-codes/s1022 - S1023 (paid): Other technical services including scientific / space services. Form: Form A2; Form 145 / 146: Part A up to ₹5 lakh in the year; above it Part C with Form 146; Part D where a treaty protects the fee.; income tax: Technical services; GST: Reverse charge 18%; reporting: Form A2 · Form 145. https://fxlayerhq.com/purpose-codes/s1023 - S1099 (paid): Other services not included elsewhere. Form: Form A2; Form 145 / 146: Part D: not chargeable without a permanent establishment.; income tax: Business income; GST: Reverse charge 18%; reporting: Form A2 · Form 145. https://fxlayerhq.com/purpose-codes/s1099 - S1101 (paid): Audio-visual services – film, video and animation production, distribution. Form: Form A2; Form 145 / 146: Depends on the nature your CA settles: Part A, C or D.; income tax: Depends on facts; GST: Reverse charge 18%; reporting: Form A2 · Form 145. https://fxlayerhq.com/purpose-codes/s1101 - S1103 (paid): Radio and television production, distribution and transmission. Form: Form A2; Form 145 / 146: Depends on the nature your CA settles: Part A, C or D.; income tax: Depends on facts; GST: Reverse charge 18%; reporting: Form A2 · Form 145. https://fxlayerhq.com/purpose-codes/s1103 - S1104 (paid): Entertainment services. Form: Form A2; Form 145 / 146: Depends on the nature your CA settles: Part A, C or D.; income tax: Depends on facts; GST: Check with your CA; reporting: Form A2 · Form 145. https://fxlayerhq.com/purpose-codes/s1104 - S1105 (paid): Museums, library and archival services. Form: Form A2; Form 145 / 146: Part D: not chargeable without a permanent establishment.; income tax: Business income; GST: Reverse charge 18%; reporting: Form A2 · Form 145. https://fxlayerhq.com/purpose-codes/s1105 - S1106 (paid): Recreation and sporting activity services. Form: Form A2; Form 145 / 146: Depends on the nature your CA settles: Part A, C or D.; income tax: Depends on facts; GST: Check with your CA; reporting: Form A2 · Form 145. https://fxlayerhq.com/purpose-codes/s1106 - S1107 (paid): Education – fees for courses / training abroad. Form: Form A2; Form 145 / 146: Part D: not chargeable without a permanent establishment.; income tax: Business income; GST: Check with your CA; reporting: Form A2 · Form 145. https://fxlayerhq.com/purpose-codes/s1107 - S1108 (paid): Health services. Form: Form A2; Form 145 / 146: Part D: not chargeable without a permanent establishment.; income tax: Business income; GST: Check with your CA; reporting: Form A2 · Form 145. https://fxlayerhq.com/purpose-codes/s1108 - S1109 (paid): Other personal, cultural and recreational services. Form: Form A2; Form 145 / 146: Depends on the nature your CA settles: Part A, C or D.; income tax: Depends on facts; GST: Check with your CA; reporting: Form A2 · Form 145. https://fxlayerhq.com/purpose-codes/s1109 - S1201 (paid): Maintenance of Indian embassies abroad. Form: Form A2; Form 145 / 146: Not needed: on the specified list.; income tax: Specified list; GST: Usually outside GST; reporting: Recorded only. https://fxlayerhq.com/purpose-codes/s1201 - S1202 (paid): Remittances by foreign embassies in India. Form: Form A2; Form 145 / 146: Not needed: on the specified list.; income tax: Specified list; GST: Usually outside GST; reporting: Recorded only. https://fxlayerhq.com/purpose-codes/s1202 - S1301 (paid): Family maintenance and savings. Form: Form A2; Form 145 / 146: Not needed: on the specified list.; income tax: Specified list; GST: Usually outside GST; reporting: LRS / personal. https://fxlayerhq.com/purpose-codes/s1301 - S1302 (paid): Personal gifts and donations. Form: Form A2; Form 145 / 146: Not needed: on the specified list.; income tax: Specified list; GST: Usually outside GST; reporting: LRS / personal. https://fxlayerhq.com/purpose-codes/s1302 - S1303 (paid): Donations to religious and charitable institutions abroad. Form: Form A2; Form 145 / 146: Not needed: on the specified list.; income tax: Specified list; GST: Usually outside GST; reporting: LRS / personal. https://fxlayerhq.com/purpose-codes/s1303 - S1304 (paid): Grants and donations to other governments and government charities. Form: Form A2; Form 145 / 146: Not needed: on the specified list.; income tax: Specified list; GST: Usually outside GST; reporting: LRS / personal. https://fxlayerhq.com/purpose-codes/s1304 - S1305 (paid): Contributions by the Government to international institutions. Form: Form A2; Form 145 / 146: Not needed: on the specified list.; income tax: Specified list; GST: Usually outside GST; reporting: LRS / personal. https://fxlayerhq.com/purpose-codes/s1305 - S1306 (paid): Payment / refund of taxes. Form: Form A2; Form 145 / 146: Not needed: on the specified list.; income tax: Not income; GST: No GST; reporting: Form A2 · Form 145. https://fxlayerhq.com/purpose-codes/s1306 - S1307 (paid): Migrant transfers including personal effects. Form: Form A2; Form 145 / 146: Part D where nothing is chargeable; Part A or C (with Form 146) where tax is due.; income tax: Case by case; GST: Usually outside GST; reporting: LRS / personal. https://fxlayerhq.com/purpose-codes/s1307 - S1401 (paid): Compensation of employees (salary to non-resident staff). Form: Form A2; Form 145 / 146: Part D where nothing is chargeable; Part A or C (with Form 146) where tax is due.; income tax: Case by case; GST: Usually outside GST; reporting: Recorded only. https://fxlayerhq.com/purpose-codes/s1401 - S1402 (paid): Interest on non-resident deposits (FCNR(B) / NR(E)RA). Form: Form A2; Form 145 / 146: Part D where nothing is chargeable; Part A or C (with Form 146) where tax is due.; income tax: Case by case; GST: Usually outside GST; reporting: Recorded only. https://fxlayerhq.com/purpose-codes/s1402 - S1403 (paid): Interest on loans from non-residents (trade credit / buyer's credit). Form: Form A2; Form 145 / 146: Part A up to ₹5 lakh in the year; above it Part C with Form 146.; income tax: Interest; GST: Exempt; reporting: Form A2 · Form 145. https://fxlayerhq.com/purpose-codes/s1403 - S1405 (paid): Interest paid by AD banks on their own account (vostro / nostro). Form: Form A2; Form 145 / 146: Part D where nothing is chargeable; Part A or C (with Form 146) where tax is due.; income tax: Case by case; GST: Usually outside GST; reporting: Recorded only. https://fxlayerhq.com/purpose-codes/s1405 - S1408 (paid): Profit remitted by branches of foreign companies in India. Form: Form A2; Form 145 / 146: Part D where nothing is chargeable; Part A or C (with Form 146) where tax is due.; income tax: Case by case; GST: Usually outside GST; reporting: Recorded only. https://fxlayerhq.com/purpose-codes/s1408 - S1409 (paid): Dividends paid by FDI enterprises in India (other than branches). Form: Form A2; Form 145 / 146: Part D where nothing is chargeable; Part A or C (with Form 146) where tax is due.; income tax: Case by case; GST: Usually outside GST; reporting: Recorded only. https://fxlayerhq.com/purpose-codes/s1409 - S1410 (paid): Interest paid by FDI enterprises in India to their parent abroad. Form: Form A2; Form 145 / 146: Part D where nothing is chargeable; Part A or C (with Form 146) where tax is due.; income tax: Case by case; GST: Usually outside GST; reporting: Recorded only. https://fxlayerhq.com/purpose-codes/s1410 - S1411 (paid): Interest on foreign portfolio investment in India. Form: Form A2; Form 145 / 146: Part D where nothing is chargeable; Part A or C (with Form 146) where tax is due.; income tax: Case by case; GST: Usually outside GST; reporting: Recorded only. https://fxlayerhq.com/purpose-codes/s1411 - S1412 (paid): Dividends on foreign portfolio investment in India. Form: Form A2; Form 145 / 146: Part D where nothing is chargeable; Part A or C (with Form 146) where tax is due.; income tax: Case by case; GST: Usually outside GST; reporting: Recorded only. https://fxlayerhq.com/purpose-codes/s1412 - S1501 (paid): Refund / rebate / reduction in invoice value on account of exports. Form: Form A2; Form 145 / 146: Not needed: on the specified list.; income tax: Specified list; GST: Follows the original; reporting: Reverses a payment. https://fxlayerhq.com/purpose-codes/s1501 - S1502 (paid): Reversal of wrong entries, refund of amount remitted for non-exports. Form: Form A2; Form 145 / 146: Part D, if the bank asks.; income tax: Not income; GST: Follows the original; reporting: Reverses a payment. https://fxlayerhq.com/purpose-codes/s1502 - S1503 (paid): Payments by residents for international bidding. Form: Form A2; Form 145 / 146: Not needed: on the specified list.; income tax: Specified list; GST: Usually outside GST; reporting: Recorded only. https://fxlayerhq.com/purpose-codes/s1503 - S1504 (paid): Notional sales when negotiated export bills are dishonoured or cancelled. Form: Form A2; Form 145 / 146: Part D where nothing is chargeable; Part A or C (with Form 146) where tax is due.; income tax: Case by case; GST: Usually outside GST; reporting: Recorded only. https://fxlayerhq.com/purpose-codes/s1504 - S1505 (paid): Deemed imports (between SEZ, EPZ and the domestic tariff area). Form: Form A2; Form 145 / 146: Part D where nothing is chargeable; Part A or C (with Form 146) where tax is due.; income tax: Case by case; GST: Zero-rated / IGST; reporting: SEZ / domestic area. https://fxlayerhq.com/purpose-codes/s1505 - S1601 (paid): Maintenance and repair of vessels, ships, boats. Form: Form A2; Form 145 / 146: Part A up to ₹5 lakh in the year; above it Part C with Form 146; Part D where a treaty protects the fee.; income tax: Technical services; GST: Reverse charge 18%; reporting: Form A2 · Form 145. https://fxlayerhq.com/purpose-codes/s1601 - S1602 (paid): Maintenance and repair of aircraft. Form: Form A2; Form 145 / 146: Part A up to ₹5 lakh in the year; above it Part C with Form 146; Part D where a treaty protects the fee.; income tax: Technical services; GST: Reverse charge 18%; reporting: Form A2 · Form 145. https://fxlayerhq.com/purpose-codes/s1602 - S1701 (paid): Processing of goods (job work abroad). Form: Form A2; Form 145 / 146: Part D: not chargeable without a permanent establishment.; income tax: Business income; GST: Reverse charge 18%; reporting: Form A2 · Form 145. https://fxlayerhq.com/purpose-codes/s1701 ## Regulatory updates - FEMA Export and Import Regulations, 2026 in force from 1 October 2026 (effective 2026-10-01): The Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026 replace the earlier export and import framework for transactions from 1 October 2026, with the A.P. (DIR Series) circulars issued under them. https://fxlayerhq.com/updates#fema-export-import-regulations-2026 - Monthly EDF for services exports replaces SOFTEX (effective 2026-10-01): From 1 October 2026 every exporter of services declares its exports on the Export Declaration Form — one EDF a month for each authority (AD bank, STPI or SEZ), due 30 days after the month ends. SOFTEX and the old EDF waiver for services are discontinued. https://fxlayerhq.com/updates#monthly-edf-for-services-exports - Monthly EDF: RBI indicates individuals need not file (effective 2026-10-07): RBI indicated on 7 October 2026 that individuals exporting services, such as freelancers, need not file the monthly Export Declaration Form that applies from 1 October 2026. Its FAQs are awaited, so until they are out an individual should ask the AD bank and keep its answer. https://fxlayerhq.com/updates#monthly-edf-individual-freelancers - Merchanting trade: legs at most six months apart (effective 2026-10-01): For merchanting trades begun from 1 October 2026, the import and export legs may be at most six months apart unless the AD bank extends the period. https://fxlayerhq.com/updates#merchanting-trade-six-month-leg-gap - Export proceeds: nine months from the invoice, twelve in rupees (effective 2026-10-01): The amendment of 22 September 2026 sets the realisation period for exports at nine months from the invoice date, and twelve months when the export is invoiced or settled in rupees. https://fxlayerhq.com/updates#export-realisation-nine-months - FLA return for FY 2025-26: due 31 July 2026 on FLAIR (effective 2026-07-31): RBI extended the Annual Return on Foreign Liabilities and Assets as on 31 March 2026 from 15 July to 31 July 2026 and moved FLA correspondence to flareturn@rbi.org.in. Entities holding FDI or ODI on 31 March file on the FLAIR portal; a return on unaudited figures is revised on the audited accounts by 30 September. https://fxlayerhq.com/updates#fla-return-fy-2025-26-due-31-july-2026 - Form 145 and Form 146 replace Form 15CA and 15CB (effective 2026-04-01): Under the Income-tax Act, 2025 and Rule 220 of the Income-tax Rules, 2026, payments to non-residents are reported on Form 145, with the chartered accountant's certificate on Form 146. https://fxlayerhq.com/updates#form-145-and-146-under-income-tax-act-2025