RBI purpose code · Money paid abroad (outward)

S0501: Construction of projects abroad by Indian companies

Short answer. S0501 is the RBI purpose code for money paid abroad: construction of projects abroad by Indian companies. It goes on Form A2 and is on the Rule 220(3) specified list, so no Form 145 or 146 is needed. GST is paid under reverse charge at 18%.

Direction
Money paid abroad (outward)
RBI head
05 · Construction
Bank application
Form A2
Form 145 / 146
Not needed: on the specified list.
Income tax
Specified list
GST
Reverse charge 18%
Reporting
Form A2 · Form 145
In FxLayer
A service: links to service invoices.

When to use S0501

Use S0501 for money paid abroad: construction of projects abroad by Indian companies. It sits under RBI head 05, construction.

Choose the code for what you are buying. The code decides the tax nature below, so a wrong code can mean the wrong rate of tax or a missing Form 145.

The same purpose in the other direction is P0501: Cost of construction of projects in India (money received).

Form A1 or Form A2

Form A2: the application for every payment abroad other than for goods imported into India. With it go the invoice, the agreement or purchase order and, unless the code is on the specified list, the Form 145 acknowledgement (and Form 146 for Part C).

Income tax

S0501 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

IGST at 18% under reverse charge: the business in India that imports the service pays it in its own GST return (Notification 10/2017-Integrated Tax (Rate), entry 1) and takes the credit where it is eligible.

Reporting and closure

The bank reports the payment under its code. FxLayer keeps the invoice, the Form 145 / 146 acknowledgements and the treaty papers on the payment, so the request goes to the bank complete.

Questions

Form A2: the application for every payment abroad other than for goods imported into India. With it go the invoice, the agreement or purchase order and, unless the code is on the specified list, the Form 145 acknowledgement (and Form 146 for Part C).
S0501 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.
IGST at 18% under reverse charge: the business in India that imports the service pays it in its own GST return (Notification 10/2017-Integrated Tax (Rate), entry 1) and takes the credit where it is eligible.

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.