What Is the P0802 Purpose Code?

The P0802 purpose code covers money received from abroad for software consultancy and software implementation services. RBI lists P0802 in group 08, Telecommunication, Computer & Information Services, with the words "other than those covered in SOFTEX form". In plain terms, P0802 is for advice, configuration, deployment and similar software services that you deliver to a foreign client. The code tells your bank, and through your bank the Reserve Bank, what the foreign currency was paid for. AD banks report every foreign exchange transaction with a purpose code under FETERS, as set out in A.P. (DIR Series) Circular No. 84 of February 29, 2012. Regulation 18(2) of the 2026 Export and Import Regulations keeps this FETERS reporting in place.

P0802 vs P0807: P0807 is "Off-site Software Exports" in the same RBI group. The P0802 description excludes amounts covered in a SOFTEX form, the declaration software exporters filed under the old rules. From October 01, 2026, A.P. (DIR Series) Circular No. 20 superseded the SOFTEX circulars, and software exports are declared on the Export Declaration Form under Regulation 3(2) of the 2026 Regulations. In practice, P0807 fits software developed in India and exported to the client, and P0802 fits consulting or implementation fees. Confirm the mapping with your AD bank.

Use the P0802 purpose code when a foreign client pays you for software consultancy or software implementation services. Typical cases are advising a client on software architecture, setting up or configuring software for a client, and integration or rollout work billed as a service. The deciding question is what your invoice and contract describe. If they describe software consulting or implementation, P0802 fits. If the payment is for software you developed in India and exported, or for another service, one of the codes below may fit better. The code you pick from the RBI purpose code list should match the invoice wording.

• Use P0807 instead: Use P0807 (Off-site Software Exports) when the payment is for software developed in India and exported to the client, which was declared on SOFTEX before October 01, 2026 and is now declared on the Export Declaration Form.
• Use P0803 instead: Use P0803 (Data base, data processing charges) when the client pays for database or data processing work rather than software consulting.
• Use P1006 instead: Use P1006 (Business and management consultancy and public relations services) when the advice is about business strategy or management and is not software work.

The P0802 purpose code is used by Indian residents who sell software consulting or implementation services to clients outside India, such as independent developers, solution architects, ERP and CRM implementation consultants, and small IT services firms. The person who declares P0802 is the Indian recipient of the payment, who selects the code with the AD bank or payment provider that credits the foreign currency.

• For example, a freelance Salesforce consultant in Pune is paid by a US company to configure its sales workflows and declares P0802.
• For example, an IT firm in Kochi receives a fee from a UK retailer for implementing an open-source inventory system on the retailer's servers.
• For example, a solution architect in Bengaluru bills an Australian startup for a two-week review of its software architecture and receives payment under P0802.
• For example, a developer in Jaipur is paid by a German client to integrate a payment gateway API into the client's existing application, billed as an implementation service.

• The payment is for software developed in India and exported to the client, formerly declared on a SOFTEX form. Use P0807 (Off-site Software Exports).
• The client pays for repair or maintenance of computer systems or software under a support contract. Use P0804 (Repair and maintenance of computer and software).
• The work is consulting or setup of computer hardware. Use P0801 (Hardware consultancy/implementation).
• You are an employee of a foreign company receiving salary. Use P1401 (Compensation of employees).

For the P0802 purpose code, the core documents are the invoice, the contract or engagement letter, and an Export Declaration Form (EDF). Under Regulation 3(2) of the 2026 Export and Import Regulations, in force from October 01, 2026, an exporter of services must furnish an EDF giving the full export value within 30 days from the end of the month in which the invoice was raised. This changes the earlier rule in paragraph B.7 of the now superseded Master Direction, which let services without a specified form be exported without any declaration.

• Invoice: Raise an invoice that names the foreign client, describes the software consulting or implementation work, and shows the amount and currency.
• Contract: Keep the contract, statement of work, purchase order or engagement email that shows what you agreed to deliver.
• EDF: File the Export Declaration Form with the specified authority. Under Regulation 2(1)(f), this is an Authorised Dealer or STPI in the DTA for software, an Authorised Dealer in the DTA for other services, and the SEZ Development Commissioner in an SEZ. One EDF can cover all services exported in a month. Ask your AD bank which category your work falls in.
• Small invoices: Under Regulation 4(2), for invoices up to ₹10 lakh, the AD bank may close the export entry in EDPMS based on your declaration that the payment has been realised.
• Bank requests: Your AD bank may ask for KYC details, the remitter's details, or a short note confirming the purpose. Check with your AD bank for its exact list.

1. Check the invoice and contract to confirm the payment is for software consultancy or implementation services.
2. Open the inward payment in your bank or payment provider's portal, app or branch form when the foreign currency arrives or when you are asked for the purpose.
3. Select P0802 from the purpose code list, or write the code and its description if the form asks for text.
4. Attach or keep ready the invoice, contract and Export Declaration Form, and add the invoice number in any remarks field so the payment can be matched.
5. Confirm the code shown on the credit advice or inward remittance certificate is P0802, and ask your bank or payment provider to correct it if it is wrong.

• FIRA/FIRC: The inward remittance advice or certificate your bank or payment provider issues normally records the purpose of the payment, so the code you declare follows the payment into your records. Keep these documents with the matching invoice. Check with your AD bank on the exact format it issues.
• GST status: A software service can be an export of services if all five conditions in section 2(6) of the IGST Act are met: supplier in India, recipient outside India, place of supply outside India, payment in convertible foreign exchange or in rupees where RBI permits, and the two parties are not merely establishments of the same person.
• Zero rating: Export of services is a zero rated supply under section 16(1)(a) of the IGST Act, and input tax credit may be availed for it under section 16(2).
• LUT: Section 16(3) allows a registered person to make zero rated supplies without payment of integrated tax under bond or Letter of Undertaking. The LUT is filed as FORM GST RFD-11 on the GST portal.
• Income tax: The purpose code does not change how the income is taxed. The fees are part of your income and are reported in your return. The Income-tax Act, 2025 replaced the 1961 Act from 01.04.2026 and uses the term tax year. Take advice from a tax professional on the correct head and return form.
• Realisation: Under Regulation 5(1)(a) of the 2026 Regulations, the export value of services must be realised and repatriated within nine months from the date of invoice, or twelve months where the export is invoiced or settled in Indian rupees. The September 22, 2026 amendment cut these from fifteen and eighteen months. Your AD bank may extend the period on request.

• Code mix-up: Declaring P0802 for software you developed in India and exported to the client, where P0807 is usually the matching code.
• Wrong group: Choosing P1006 (business and management consultancy) for software work because the invoice says consulting, even though the work is software consultancy.
• Catch-all code: Using P1099 (Other services not included elsewhere) when a specific code such as P0802 describes the service.
• Personal codes: Selecting a transfer code such as P1301 (family maintenance) for business fees, which misstates the nature of the receipt.
• Invoice mismatch: Writing an invoice description that does not match the code, for example billing "marketing support" while declaring P0802.
• No EDF: Skipping the Export Declaration Form. From October 01, 2026, Regulation 3(2) requires one for services within 30 days from the end of the invoice month.

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 for receipts, Annex purpose codes, receipts, Group 08 Telecommunication, Computer & Information Services: P0801, P0802, P0803, P0804, P0807; Group 13 P1301; Group 14 P1401; Group 10 P1006, P1099 (checked 6 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 6 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), Regulation 1(2) (in force from October 01, 2026); 2(1)(f) (specified authority); 3(2) (EDF for services within 30 days from end of invoice month); 4(2) (EDPMS closure up to ₹10 lakh); 5(1)(a) (nine months from invoice date, as amended on September 22, 2026); 18(2) (FETERS reporting) (checked 6 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 and Annex A: Master Direction on Export of Goods and Services and listed circulars, including the SOFTEX circulars, superseded from October 01, 2026 (checked 6 Oct 2026)
5. RBI: Export Declaration Form, Annex to the 2026 Regulations, Part 2B (details of services provided to multiple recipients) and Part 5 (certification by Custom, SEZ, Authorised Dealer or STPI) (checked 6 Oct 2026)
6. RBI Master Direction: Export of Goods and Services (updated as on July 17, 2026; superseded from October 01, 2026), Superseded from October 01, 2026; cited only to explain the earlier rule in paragraph B.7 (export of services without a specified form) (checked 6 Oct 2026)
7. IGST Act, 2017, Section 2: Definitions (CBIC tax information portal), Section 2(6): definition of export of services (checked 6 Oct 2026)
8. IGST Act, 2017, Section 16: Zero rated supply (CBIC tax information portal), Section 16(1)(a), 16(2) and 16(3): zero rated supply, input tax credit, supply under bond or Letter of Undertaking (checked 6 Oct 2026)
9. GST Portal user manual: Furnishing of Letter of Undertaking (FORM GST RFD-11), Filing path Services > User Services > Furnish Letter of Undertaking (LUT) (checked 6 Oct 2026)
10. Income Tax Department e-filing portal: Objective and scope of the New Act, Repeal of the 1961 Act on 01.04.2026 and the tax year concept (checked 6 Oct 2026)