RBI purpose code · Money paid abroad (outward)

S0609: Standardised guarantee services

Short answer. S0609 is the RBI purpose code for money paid abroad: standardised guarantee services. It goes on Form A2 with Form 145. For income tax it is decided on the facts by your CA. Whether GST applies under reverse charge depends on the service.

Direction
Money paid abroad (outward)
RBI head
06 · Insurance and pension
Bank application
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
In FxLayer
A service: links to service invoices.

When to use S0609

Use S0609 for money paid abroad: standardised guarantee services. It sits under RBI head 06, insurance and pension.

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 P0609: Standardised guarantee services (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

A guarantee fee can be business income (no PE, nothing withheld), "other income" under the treaty or interest-like: it depends on the guarantee. Ask your CA before you pay.

Form 145 / 146: Depends on the nature your CA settles: Part A, C or D.

GST

A guarantee from abroad: confirm the reverse-charge position with your CA. Where it applies, reverse charge is at 18%.

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).
A guarantee fee can be business income (no PE, nothing withheld), "other income" under the treaty or interest-like: it depends on the guarantee. Ask your CA before you pay. Form 145 / 146: Depends on the nature your CA settles: Part A, C or D.
A guarantee from abroad: confirm the reverse-charge position with your CA. Where it applies, reverse charge is at 18%.

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.