S1306: Payment / refund of taxes

When to use S1306

Use S1306 for money paid abroad: payment / refund of taxes. It sits under RBI head 13, family, gifts, donations and taxes.

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 P1306: Receipts / refund of taxes (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

Not income of the payee (a tax payment, a refund or a reversed entry): there is nothing to withhold.

S1306 is on the specified list in Rule 220(3) of the Income-tax Rules, 2026: neither Form 145 nor Form 146 is needed.

Form 145 / 146: Not needed: on the specified list.

GST

Not a supply on which GST is payable in India.

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.

Other codes under head 13

• S1301Family maintenance and savings
• S1302Personal gifts and donations
• S1303Donations to religious and charitable institutions abroad
• S1304Grants and donations to other governments and government charities
• S1305Contributions by the Government to international institutions
• S1307Migrant transfers including personal effects

Questions

Guides

• RBI purpose codes: the five characters that classify every payment
• Form 145 and Form 146: which part applies to your foreign payment
• Paying a foreign vendor at the treaty rate: the papers that matter
• Form A1 or Form A2: which application does your bank need?