S1503: Payments by residents for international bidding

When to use S1503

Use S1503 for money paid abroad: payments by residents for international bidding. It sits under RBI head 15, refunds, bidding and deemed trade.

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 P1503: Receipts by residents under an international bidding process (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

S1503 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

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.

Other codes under head 15

• S1501Refund / rebate / reduction in invoice value on account of exports
• S1502Reversal of wrong entries, refund of amount remitted for non-exports
• S1504Notional sales when negotiated export bills are dishonoured or cancelled
• S1505Deemed imports (between SEZ, EPZ and the domestic tariff area)

Questions

Guides

• RBI purpose codes: the five characters that classify every payment
• Form A1 or Form A2: which application does your bank need?
• Your AD bank: the gatekeeper for every foreign trade payment