What Is the P0807 Purpose Code?

The P0807 purpose code covers money received from abroad for off-site software exports, meaning software work done in India and delivered to the foreign client from India. RBI lists P0807 in group 08, Telecommunication, Computer & Information Services. Under the old rules, paragraph B.5 of the now superseded Master Direction linked SOFTEX form numbers to "off-site software exports". From October 01, 2026, the 2026 Export and Import Regulations define software as any computer programme, database, drawing, design, audio/video signals or information on a non-physical medium, and treat software as a service for declaration purposes.

P0807 vs P0802: P0802 is "Software consultancy/implementation (other than those covered in SOFTEX form)". The RBI purpose code list used the SOFTEX form as the dividing line, and that wording has not changed. Since SOFTEX gave way to the Export Declaration Form on October 01, 2026, a practical test is the nature of the work: exported software developed in India fits P0807, and consulting or implementation fees fit P0802. Confirm the mapping with your AD bank.

Use the P0807 purpose code when a foreign client pays you for software you developed in India and exported from India. Typical cases are custom software development billed per milestone, software delivered by transmission, and long contracts with monthly billing. From October 01, 2026, each such export is declared on an Export Declaration Form under Regulation 3(2) of the 2026 Regulations. If the payment is an advance or a bill handled through your bank's export bill process, your AD bank may use one of the codes below. 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 payment is a fee for software consulting or implementation services.
• Use P0103 instead: Ask your AD bank about P0103 (Advance receipts against export contracts, which will be covered later by GR/PP/SOFTEX/SDF – other than Nepal and Bhutan) when the client pays in advance before the export is made and declared.
• Use P0101 instead: Ask your AD bank about P0101 (Value of export bills negotiated / purchased/discounted etc. (covered under GR/PP/SOFTEX/EC copy of shipping bills etc.) – Other than Nepal and Bhutan) when the bank negotiates, purchases or discounts your export bill.

The P0807 purpose code is used by software exporters in India, such as units registered with Software Technology Parks of India (STPI), units in Special Economic Zones and other software companies that export software from India. The exporter selects P0807 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 software company in Hyderabad builds a mobile app for a US client, invoices on each milestone, files an EDF, and receives each payment under P0807.
• For example, an STPI-registered unit in Chennai runs a twelve-month development contract for a UK insurer, bills monthly, and declares P0807 on the monthly receipts.
• For example, an SEZ unit in Noida transmits a finished software module to a client in Singapore in a one-shot delivery and receives payment under P0807.
• For example, a product studio in Ahmedabad exports a customised analytics platform to a Canadian client and reports the receipt under P0807 after declaring the export on an EDF.

• The payment is a fee for software consulting or implementation services. Use P0802 (Software consultancy/implementation (other than those covered in SOFTEX form)).
• The client pays for repair or maintenance of computer systems or software. Use P0804 (Repair and maintenance of computer and software).
• The client pays for database or data processing work. Use P0803 (Data base, data processing charges).
• The work is consulting or setup of computer hardware. Use P0801 (Hardware consultancy/implementation).

For the P0807 purpose code, the core documents are the invoice, the contract with the foreign client, and the Export Declaration Form (EDF). Under Regulation 3(2) of the 2026 Export and Import Regulations, in force from October 01, 2026, an exporter of software must furnish an EDF with the full export value within 30 days from the end of the month in which the invoice was raised. A.P. (DIR Series) Circular No. 20 superseded the SOFTEX circulars and the Master Direction that described SOFTEX from the same date.

• Invoice: Raise invoices that match the EDF details, including client name and address, invoice number and date, currency, amount, and the contract number and date.
• EDF: Submit the Export Declaration Form to the specified authority: an Authorised Dealer or STPI in the DTA, or the SEZ Development Commissioner in an SEZ. One EDF can cover software exported to one or more recipients in a month, and the AD bank may extend the deadline on request.
• Contract: Keep the master services agreement, statement of work or purchase order that shows the software to be developed and delivered.
• Earlier SOFTEX: For exports made before October 01, 2026, the SOFTEX form certified under paragraph B.5 of the old Master Direction stays the record for those invoices. See the guide on SOFTEX form filing.
• Bank requests: Your AD bank may ask for the EDF number and 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 that the payment relates to software developed in India and exported, and that an EDF has been or will be filed for the invoice month.
2. Open the inward payment in your bank or payment provider's portal, app or branch form when the foreign currency arrives.
3. Select P0807 from the purpose code list, or write the code and its description if the form asks for text.
4. Quote the EDF form number and the invoice numbers in the remarks or supporting document fields, and share the EDF copy when asked.
5. Check that the credit advice or inward remittance certificate shows P0807, 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 EDF and invoice for each receipt. Check with your AD bank on the format it issues.
• GST status: Software exported to a foreign client is an export of services 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.
• 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.
• Income tax: The purpose code does not change how the income is taxed. Software export income is part of your 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, including software, 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.

• Code mix-up: Declaring P0807 for consulting or implementation fees, where P0802 usually fits better.
• Old process: Following the superseded SOFTEX process for software exported on or after October 01, 2026, instead of filing an EDF.
• Late EDF: Filing the EDF more than 30 days after the end of the invoice month without asking the AD bank for an extension.
• Missing link: Not quoting the EDF number to the AD bank, which leaves the receipt unmatched to the export entry in EDPMS.
• Catch-all code: Using P1099 (Other services not included elsewhere) for software export receipts when P0807 describes them.
• Amount gaps: Leaving differences between the invoice, the EDF value 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, P0807; Group 01 P0101, P0103; Group 10 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)(e) and (f) (software, specified authority); 3(2) and 3(2)(a) (EDF for services including software, single monthly EDF); 4(2) (EDPMS closure up to ₹10 lakh); 5(1)(a) (nine months from invoice date, as amended on September 22, 2026) (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 SOFTEX process in paragraph B.5 (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)