RBI purpose code · Money paid abroad (outward)

S1412: Dividends on foreign portfolio investment in India

Short answer. S1412 is the RBI purpose code for money paid abroad: dividends on foreign portfolio investment in India. It is reported to RBI under the code but settles no invoice or customs document. It goes on Form A2.

Direction: Money paid abroad (outward)
RBI head: 14 · Salary, interest, dividends and profit
Bank application: Form A2
Form 145 / 146: Part D where nothing is chargeable; Part A or C (with Form 146) where tax is due.
Income tax: Case by case
GST: Usually outside GST
Reporting: Recorded only
In FxLayer: Recorded and reported only: it links to no invoice or customs document, and never shows as unallocated.

When to use S1412

Use S1412 for money paid abroad: dividends on foreign portfolio investment in India. It sits under RBI head 14, salary, interest, dividends and profit.

A recorded-only code: it is not for paying for goods or services, which have codes of their own.

The same purpose in the other direction is P1412: Dividends on Indian portfolio investment abroad (money received).

Form A1 or Form A2

Form A2: the application for every payment abroad other than for goods imported into India. The bank may ask for the documents behind the payment and, unless the code is on the specified list, for Form 145.

Income tax

Dividends are taxable in the hands of the non-resident investor: tax is withheld at the Act rate or the lower treaty rate.

Form 145 / 146: Part D where nothing is chargeable; Part A or C (with Form 146) where tax is due.

GST

Capital, loans, gifts, claims, salaries and dividends are not supplies of goods or services, and interest on loans and deposits is exempt. Ask your CA where a fee is bundled with the transfer.

Reporting and closure

The bank reports it to RBI under its code, but it settles no invoice or customs document.

Questions

Form A2: the application for every payment abroad other than for goods imported into India. The bank may ask for the documents behind the payment and, unless the code is on the specified list, for Form 145.

Dividends are taxable in the hands of the non-resident investor: tax is withheld at the Act rate or the lower treaty rate. Form 145 / 146: Part D where nothing is chargeable; Part A or C (with Form 146) where tax is due.

Capital, loans, gifts, claims, salaries and dividends are not supplies of goods or services, and interest on loans and deposits is exempt. Ask your CA where a fee is bundled with the transfer.

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.