What Is the P0804 Purpose Code?

The P0804 purpose code covers money received from abroad for repairing and maintaining computers and software. RBI lists P0804 in group 08 of the FETERS purpose code list. Typical work is bug fixing, patching, remote support and annual maintenance contracts for systems already built. The code describes the nature of the service, so the same company may use another code for new development work.

P0804 vs P0802: P0802 is "Software consultancy/implementation (other than those covered in SOFTEX form)" in the RBI purpose code list. Ongoing repair and maintenance of existing systems points to P0804, while advice and setup work points to P0802. Where one invoice mixes both, ask your AD bank which code fits the main service.

Use the P0804 purpose code when a foreign client pays you to repair or maintain computers or software. Typical cases are annual maintenance contracts, monthly support retainers and one-off fixes for an existing system. Keep the invoice description close to the RBI wording so the service is clear. Confirm the code with your AD bank before the first receipt.

• Use P0802 instead: Use P0802 (Software consultancy/implementation (other than those covered in SOFTEX form)) when the fee is for consulting or implementing software rather than maintaining it.
• Use P0807 instead: Use P0807 (Off-site Software Exports) when the payment is for software developed in India and exported to the client. See the guide on P0807.
• Use P0803 instead: Use P0803 (Data base, data processing charges) when the payment is for database work or data processing.

The P0804 purpose code is used by IT support companies, managed service providers, software maintenance teams and freelance engineers in India who service foreign clients' systems. The exporter selects P0804 with the AD bank that receives the foreign currency, and the bank reports it under FETERS in line with A.P. (DIR Series) Circular No. 84 of February 29, 2012.

• For example, a Pune support firm keeps a UK retailer's point-of-sale software patched under a monthly retainer and declares each receipt under P0804.
• For example, a freelance developer in Bengaluru fixes bugs in a US client's existing web application on an hourly basis and receives payment under P0804.
• For example, a Chennai IT services company holds an annual maintenance contract for a Singapore firm's servers and reports the yearly fee under P0804.
• For example, a Hyderabad team provides remote helpdesk support for a Canadian client's office computers and uses P0804 for the monthly invoices.

• The client pays for building new software that is delivered from India. Use P0807 (Off-site Software Exports).
• The client pays for software consulting or implementation advice. Use P0802 (Software consultancy/implementation (other than those covered in SOFTEX form)).
• The client pays for database work or data processing. Use P0803 (Data base, data processing charges).
• The client pays for advice on or setting up computer hardware. Use P0801 (Hardware consultancy/implementation).

For the P0804 purpose code, the core documents are the invoice, the maintenance or support agreement, and the record of the work done. From October 01, 2026, the 2026 Export and Import Regulations also apply to exports of services. Keep these papers together so the bank can match each receipt to a service.

• Invoice: Raise invoices that name the client, state the support or maintenance service, and show the currency, amount and period covered.
• Agreement: Keep the maintenance contract, statement of work or purchase order that shows the systems covered and the fee.
• EDF: Under Regulation 3(2) of the 2026 Regulations, in force from October 01, 2026, an exporter of services submits an Export Declaration Form within 30 days from the end of the month in which the invoice was raised. Check with your AD bank on how this applies to your invoices.
• Work records: Keep tickets, service reports or email approvals that show the work was done for the period invoiced.
• Bank requests: Your AD bank may ask for invoice numbers to close the EDPMS entry. Under Regulation 4(2), invoices up to ₹10 lakh can be closed on your declaration that the payment has been realised.

1. Confirm what the foreign client is paying for and check that the description of P0804 (Repair and maintenance of computer and software) fits that service.
2. Open the inward payment in your bank or payment provider's portal, app or branch form when the foreign currency arrives.
3. Select P0804 from the purpose code list, or write the code and its description if the form asks for text.
4. Add the invoice number and a short note on the service in the remarks or supporting document fields, and attach documents when asked.
5. Check that the credit advice or inward remittance certificate shows P0804, and ask your bank or payment provider to correct it if it does not.

• FIRA/FIRC: The inward remittance advice or certificate from your bank or payment provider normally records the purpose of the payment. Keep it with the invoice and contract for each receipt. Check with your AD bank on the format it issues. See the guide on FIRA.
• GST status: A supply to a foreign client is an export of services only when all five conditions in section 2(6) of the IGST Act are met, including payment in convertible foreign exchange or in rupees where RBI permits. Maintenance services delivered to a client outside India can meet those conditions, but confirm the place of supply and your facts with a tax professional.
• 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: Under section 16(3), a registered person can make zero rated supplies without paying integrated tax under bond or Letter of Undertaking. The LUT is filed as FORM GST RFD-11 on the GST portal. See the guide on LUT.
• Income tax: The purpose code does not change how the income is taxed. The income is part of your total income and is reported in your return. The Income-tax Act, 2025 replaced the 1961 Act from 01.04.2026. Take advice from a tax professional on deductions and the correct 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 AD bank may extend the period.

• Code mix-up: Declaring P0804 for new software development, where P0807 usually fits better.
• Mixed invoices: Combining maintenance and consulting in one invoice with no split, which makes the code unclear.
• Vague wording: Writing only "IT services" on the invoice, so the bank cannot match the service to P0804.
• Catch-all code: Using P1099 (Other services not included elsewhere) when P0804 describes the service.
• Late declaration: Filing the Export Declaration Form more than 30 days after the end of the invoice month without asking the AD bank for an extension.
• Amount gaps: Leaving differences between the invoice and the amount received unexplained, which delays closure with the AD bank.

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, P0805, P0806, P0807, P0808; Group 10 P1099 (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), Regulation 1(2) (in force from October 01, 2026); 3(2) (EDF for services); 4(2) (EDPMS closure up to ₹10 lakh); 5(1)(a) (nine months from invoice date, as amended on September 22, 2026) (checked 9 Oct 2026)
4. IGST Act, 2017, Section 2: Definitions (CBIC tax information portal), Section 2(6): definition of export of services (checked 9 Oct 2026)
5. IGST Act, 2017, Section 16: Zero rated supply (CBIC tax information portal), Section 16(1)(a), 16(2) and 16(3) (checked 9 Oct 2026)
6. GST Portal user manual: Furnishing of Letter of Undertaking (FORM GST RFD-11), Filing path Services > User Services > Furnish Letter of Undertaking (LUT) (checked 9 Oct 2026)
7. 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 9 Oct 2026)