When to use S0104
Use S0104 for money paid abroad: intermediary trade / transit trade (third-country export passing through India). It sits under RBI head 01, goods – exports and imports.
Use it only for goods imported into India. Freight and insurance paid separately have codes of their own (S0203, S0209, S0602).
The same purpose in the other direction is P0104: Receipts against intermediary / transit trade (third-country export passing through India) (money received).
Form A1 or Form A2
Form A1: the application for a payment for goods imported into India. With it the bank asks for a request letter and the invoice and the import documents, and reports the payment in IDPMS.
Income tax
Paying for goods bought from abroad is the seller's trading receipt, not income that arises in India.
S0104 is on the specified list in Rule 220(3) of the Income-tax Rules, 2026: neither Form 145 nor Form 146 is needed, and no tax is withheld.
Form 145 / 146: Not needed: on the specified list.
GST
Goods that only pass through India under customs control are not cleared for home consumption, so no IGST is paid on them here. Ask your CA how your route is treated.
Reporting and closure
The bank reports the payment in IDPMS and settles it against the Bill of Entry. A Bill of Entry should normally be paid within six months of shipment, unless the arrangement is for deferred payment permitted under FEMA. Only the bank closes the entry.
Questions
Guides
General information on RBI purpose codes and the FEMA, income-tax and GST rules as they stood on 14 October 2026. It is not legal or tax advice: confirm the position for your payment with your AD bank or your chartered accountant before acting.