What Is the P0201 Purpose Code?

The P0201 purpose code covers surplus freight or passenger fare that an Indian shipping company receives for ships it operates abroad. RBI's FETERS list places it in Group 02, Transport, with sibling codes for foreign shipping companies, airlines and other transport services. The wording is about shipping companies. Some planning notes describe P0201 as receipts of distribution services, but the RBI description does not say that, so this page follows the RBI wording.

P0201 vs P0207: P0207 is "Receipts of surplus freight/passenger fare by Indian Airlines companies operating abroad.". It has the same meaning as P0201 but for Indian airline companies instead of shipping companies. An airline that operates abroad uses P0207, and a shipping company uses P0201. Pick the code that matches the mode of transport.

Use the P0201 purpose code when an Indian shipping company brings surplus freight or passenger fare earned abroad into India. The code is tied to the type of business, so a business outside shipping will not use it. In practice, the AD bank reports the code on the inward remittance, so confirm it with them.

• Use P0207 instead: Use P0207 (Receipts of surplus freight/passenger fare by Indian Airlines companies operating abroad.) when an Indian airline company brings surplus freight or passenger fare into India.
• Use P0202 instead: Use P0202 (Receipts on account of operating expenses of Foreign shipping companies operating in India) when a foreign shipping company operating in India has its operating expenses met from abroad.
• Use P0205 instead: Use P0205 (Receipts on account of operational leasing (with crew) – Shipping companies) for operational leasing with crew by shipping companies.

The P0201 purpose code is used by Indian shipping companies that operate vessels abroad and bring surplus freight or passenger fare back to India. The AD bank reports the receipt under FETERS in line with A.P. (DIR Series) Circular No. 84 of February 29, 2012, and Regulation 18(2) of the 2026 Regulations keeps that reporting duty in place.

• For example, an Indian shipping line that runs cargo vessels between Singapore and Europe remits its surplus freight earnings to India, and the bank reports the receipt under P0201.
• For example, an Indian passenger ferry operator that runs a route abroad brings surplus passenger fares home, and the AD bank reports them under P0201.
• For example, an Indian bulk carrier owner receives surplus freight from a charterer overseas and the bank records the inward remittance under P0201.
• For example, a shipping company in Mumbai asks its AD bank to code the freight surplus it brings from its foreign agent, and the bank selects P0201.

• An Indian airline brings surplus freight or passenger fare into India. Use P0207 (Receipts of surplus freight/passenger fare by Indian Airlines companies operating abroad.).
• A foreign shipping company operating in India has its local expenses paid from abroad. Use P0202 (Receipts on account of operating expenses of Foreign shipping companies operating in India).
• A shipping company receives money for leasing a vessel with crew. Use P0205 (Receipts on account of operational leasing (with crew) – Shipping companies).
• A freelancer or consultant receives payment for services. Use A code from the services groups that matches the work. See the [purpose code list for exporters](/blog/rbi-purpose-codes-list-for-exporters)..

For the P0201 purpose code, the core documents are the freight or fare statements, voyage records, agency accounts and the bank's own request form. RBI's rules do not list a fixed document set for this code in the FETERS list. Each AD bank must publish its list of documents, timelines and charges under Regulation 19(1)(a).

• Voyage accounts: Keep voyage accounts that show freight and fares collected abroad and the costs paid abroad.
• Agent statements: Keep statements from foreign agents that show what was collected and what was remitted.
• Invoices: Keep invoices or charter documents that support the freight or fare.
• Bank form: Complete the bank's inward remittance form and confirm the purpose with the bank.
• Inward advice: Check the credit advice shows the purpose code the bank reports.

1. Confirm the money is surplus freight or passenger fare earned by an Indian shipping company operating abroad.
2. Collect voyage accounts and agent statements that show how the surplus was calculated.
3. Give the documents to your AD bank with the remittance details.
4. Name the purpose as surplus freight or passenger fare so the bank can select P0201.
5. Check the credit advice shows P0201 and ask the bank to correct it if it does not.

• FIRA/FIRC: The inward remittance advice from your AD bank normally records the purpose of the payment. Keep it with the voyage accounts. See the FIRA guide and ask your bank about its format.
• GST status: Under section 2(6) of the IGST Act, export of services depends on conditions such as the location of the supplier and recipient and the place of supply. The place of supply rules for transport are specific, so ask a GST professional how they apply to your freight or fare.
• LUT: Where a registered person exports services without paying integrated tax, it is done under bond or Letter of Undertaking, filed as FORM GST RFD-11 on the GST portal. Check whether it applies.
• Income tax: The purpose code does not change how income is taxed. The Income-tax Act, 2025 replaced the 1961 Act from 01.04.2026. Take advice from a tax professional on how shipping income is treated.
• Realisation: Regulation 5 of the 2026 Regulations sets realisation timelines for export value. Ask your AD bank whether and how it applies to shipping receipts.

• Wrong mode: Using P0201 for an airline, where P0207 is the matching code.
• Distribution services: Choosing P0201 because a planning note calls it distribution services, though RBI describes surplus freight or passenger fare.
• Foreign operator: Using P0201 for a foreign shipping company operating in India, which is P0202.
• Leasing: Reporting vessel leasing with crew under P0201 instead of P0205.
• Services income: Using a transport code for freelance or consulting income.
• No accounts: Not keeping voyage accounts that support the surplus remitted.

The code, its official description and every rule on this page are linked to RBI and other official sources, checked on the dates below.

1. RBI: Guidelines for Submission of Data, Foreign Exchange Transactions Electronic Reporting System (FETERS), purpose code list, Purpose codes for receipts, file coverage table and group listing (checked 9 Oct 2026)
2. RBI A.P. (DIR Series) Circular No. 84 dated February 29, 2012: Compilation of R-Returns, Reporting under FETERS, Paragraph 3: AD banks to report all foreign exchange transactions as per the revised purpose code list from April 2012 (checked 9 Oct 2026)
3. RBI Notification No. FEMA 23(R)/2026-RB: Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026 (amended up to September 22, 2026), Regulations 1(2), 3, 5, 16, 18(2) and 19(1)(a) (checked 9 Oct 2026)
4. RBI A.P. (DIR Series) Circular No. 20 dated January 16, 2026: Export and Import of Goods and Services, Paragraphs 4 and 7: Master Directions superseded from October 01, 2026 (checked 9 Oct 2026)
5. IGST Act, 2017, Section 2: Definitions (CBIC tax information portal), Section 2(5) export of goods; section 2(6) export of services (checked 9 Oct 2026)
6. GST Portal user manual: Furnishing of Letter of Undertaking (FORM GST RFD-11), LUT for export of goods or services (checked 9 Oct 2026)
7. Income Tax Department e-filing portal: Objective and scope of the New Act, FAQ 2: the 1961 Act stands repealed on 01.04.2026 (checked 9 Oct 2026)