When to use S1501
Use S1501 for money paid abroad: refund / rebate / reduction in invoice value on account of exports. It sits under RBI head 15, refunds, bidding and deemed trade.
The same purpose in the other direction is P1501: Refund / rebate on account of imports (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
S1501 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
A refund or reversal takes the GST treatment of the payment it reverses; it is not a new supply.
Reporting and closure
A refund or reversal is reported against the payment or receipt it undoes, which lets the bank close the original entry in IDPMS or EDPMS.
Questions
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.
