What Is the P0902 Purpose Code?

The P0902 purpose code covers money received from abroad that matches the RBI wording "Receipts for use, through licensing arrangements, of produced originals or prototypes (such as manuscripts and films), patents, copyrights, trademarks, industrial processes, franchises etc.". RBI lists P0902 in Charges for the use of intellectual property group. In plain terms, P0902 applies when a foreign party pays you for the right to use something you own, such as a manuscript, film, patent, copyright, trademark, industrial process or franchise, rather than for work you do for it. AD banks report the code you choose under FETERS, as set out in A.P. (DIR Series) Circular No. 84 of 29 February 2012. Regulation 18(2) of the 2026 Export and Import Regulations keeps this FETERS reporting in place.

P0902 vs P0901: P0901 is "Franchises services" in the same intellectual property group. The P0902 wording also lists franchises among the licensed items. Check the contract: if the payment is a fee for franchise services, P0901 matches its title, and if it is a receipt for licensing a brand, process or other asset, P0902 is the closer match. Ask your AD bank if both fit.

Use the P0902 purpose code when a foreign party pays you under a licensing arrangement for rights to your intellectual property. Typical cases are royalties on a book or film, a patent licence fee, a copyright or trademark licence, and payment for an industrial process licence. The deciding question is whether the invoice and agreement describe a licence to use something you own. Other groups of the RBI purpose code list cover services you perform, so check the alternatives below before choosing P0902.

• Use P0901 instead: Use P0901 (Franchises services) when the payment is a fee for franchise services.
• Use P0807 instead: Use P0807 (Off-site Software Exports) when you supply software or software services from India to the foreign client.
• Use P1099 instead: Use P1099 (Other services not included elsewhere) only when no more specific code describes the payment.

The P0902 purpose code is used by Indian residents who license intellectual property to parties outside India, such as authors and publishers, film and content producers, inventors and patent holders, and brand owners. The Indian recipient of the payment declares P0902 to the AD bank that credits the foreign currency.

• For example, an author in Delhi receives a royalty from a UK publisher for a licence to print and sell her manuscript abroad and declares P0902.
• For example, a film producer in Mumbai licenses a completed film to a distributor in Singapore and receives the licence fee under P0902.
• For example, an inventor in Pune licenses a patented process to a German manufacturer and receives the licence fee under P0902.
• For example, an Indian brand owner licenses its trademark to a Dubai retailer and receives the licence payment under P0902.

• The client pays you to write, design or produce new work for a fee. Use The code that matches the service, such as P1006 (Business and management consultancy and public relations services).
• The payment is for supplying software or software services from India. Use P0807 (Off-site Software Exports) or P0802 (Software consultancy/implementation (other than those covered in SOFTEX form)).
• The payment is a fee for franchise services. Use P0901 (Franchises services).
• The payment does not fit any listed purpose. Use P1099 (Other services not included elsewhere).

For the P0902 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 1 October 2026, an exporter of services must furnish an EDF with the full export value within 30 days from the end of the month in which the invoice is raised. For services other than software, the EDF may be submitted on or before the date of receipt of payment. The AD bank may extend the period on a reasoned request.

• Invoice: Raise an invoice naming the foreign client and describing the service, the period covered, the amount and the currency in words that match P0902.
• Contract: Keep the engagement letter, statement of work or email confirmation that shows the scope of the work.
• EDF: Submit the Export Declaration Form to an Authorised Dealer in the DTA, or to the SEZ Development Commissioner in an SEZ. One EDF can cover all services exported to one or more recipients in a month.
• Licence agreement: Keep the licence or royalty agreement that shows the rights granted, the territory, the term and how the fee is calculated, along with royalty statements sent to you.
• Bank requests: Your AD bank may ask for KYC details or the remitter's details. Under Regulation 4(2), invoices up to Rs 10 lakh can be closed in EDPMS on your declaration that the payment has been realised.

1. Check the invoice and contract to confirm the payment is for licence fees or royalties for intellectual property.
2. Open the inward payment in your AD bank's portal, app or branch form when the foreign currency arrives or when you are asked for the purpose.
3. Select P0902 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 EDF, 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 P0902, and ask your bank to correct it if it is wrong. See how to correct a purpose code after payment.

• FIRA/FIRC: The inward remittance advice or certificate your AD bank issues normally records the purpose of the payment. Keep it with the matching invoice. Check with your bank on the exact format. See FIRC vs FIRA vs eBRC.
• GST status: A service for a foreign client is an export of services only if all five conditions in section 2(6) of the IGST Act are met, including a place of supply outside India. A licence of intellectual property to a foreign party can fall within the export of services definition, but the classification, place of supply and any applicable rate depend on the facts, so confirm with a GST professional. See GST on export of services.
• Zero rating: Export of services is a zero rated supply under section 16(1)(a) of the IGST Act, and section 16(3) allows supply under bond or Letter of Undertaking. The LUT is filed as FORM GST RFD-11 on the GST portal. See LUT filing on the GST portal.
• Income tax: The purpose code does not change how the income is taxed. The fee is part of your income and is reported in your return. The Income-tax Act, 2025 replaced the 1961 Act from 1 April 2026, so 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. Your AD bank may extend the period on request.

• Wrong group: Treating P0902 as a code for work done for a client. The code is for receipts under a licensing arrangement.
• Franchise overlap: Choosing P0902 or P0901 without reading the contract, when the agreement describes franchise services.
• Software licences: Using P0902 for software supplied from India, where RBI lists P0807 (Off-site Software Exports).
• Catch-all code: Using P1099 (Other services not included elsewhere) when P0902 describes the licence receipt.
• Personal codes: Selecting a transfer code such as P1301 (family maintenance) for royalty income, which misstates the nature of the receipt.
• No EDF: Assuming a licence receipt needs no declaration. From 1 October 2026, Regulation 3(2) requires an EDF for services.

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, Group 09 P0901, P0902; Group 08 P0802, P0807; Group 10 P1099 (receipts); Group 13 P1301 (checked 9 Oct 2026)
2. RBI A.P. (DIR Series) Circular No. 84 dated 29 February 2012: Compilation of R-Returns, Reporting under FETERS, Paragraph 3: AD banks report all foreign exchange transactions with the revised purpose codes (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, as amended on 22 September 2026, Regulations 3(2), 4(2), 5(1)(a), 18(2) (checked 9 Oct 2026)
4. RBI A.P. (DIR Series) Circular No. 20 dated 16 January 2026: Export and Import of Goods and Services, Supersedes the old Master Directions and SOFTEX circulars from 1 October 2026 (checked 9 Oct 2026)
5. RBI: Export Declaration Form, Annex to the 2026 Regulations, Form for services exports (checked 9 Oct 2026)
6. Integrated Goods and Services Tax Act, 2017: Section 2 (Definitions), Section 2(6), export of services (checked 9 Oct 2026)
7. Integrated Goods and Services Tax Act, 2017: Section 16 (Zero rated supply), Section 16(1)(a) and 16(3) (checked 9 Oct 2026)
8. GST portal user guide: Furnishing of Letter of Undertaking (checked 9 Oct 2026)
9. Income Tax Department: Objective and scope of the new Act, Income-tax Act, 2025 effective 1 April 2026 (checked 9 Oct 2026)