RBI purpose code · Money paid abroad (outward)

S1108: Health services

Short answer. S1108 is the RBI purpose code for money paid abroad: health services. It goes on Form A2 with Form 145. For income tax it is business income of the payee, not taxable in India without a permanent establishment here. Whether GST applies under reverse charge depends on the service.

Direction
Money paid abroad (outward)
RBI head
11 · Media, education, health and other personal services
Bank application
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
In FxLayer
A service: links to service invoices.

When to use S1108

Use S1108 for money paid abroad: health services. It sits under RBI head 11, media, education, health and other personal services.

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 P1108: Health services (doctors, hospitals, paramedical – remote or on-site) (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

Business income of the payee. A non-resident's business income is taxable in India only through a business connection or a permanent establishment here (Article 7 of a tax treaty). With none, nothing is withheld; the bank usually wants the payee's TRC, Form 41 and a no-permanent-establishment declaration.

Form 145 / 146: Part D: not chargeable without a permanent establishment.

GST

Health services abroad: usually exempt; confirm 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).
Business income of the payee. A non-resident's business income is taxable in India only through a business connection or a permanent establishment here (Article 7 of a tax treaty). With none, nothing is withheld; the bank usually wants the payee's TRC, Form 41 and a no-permanent-establishment declaration. Form 145 / 146: Part D: not chargeable without a permanent establishment.
Health services abroad: usually exempt; confirm 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.