What Is the P1002 Purpose Code?

The P1002 purpose code covers commission received from abroad for trade related services on exports or imports. RBI lists P1002 in group 10, Other Business Services, with the description "Trade related services – commission on exports / imports". In plain terms, P1002 applies when you arrange or facilitate a trade deal between a buyer and a seller and a foreign party pays you a commission for that work. The money you receive is your fee, not the price of the goods. P1002 does not cover accounting, auditing, bookkeeping or tax consulting. In the current list those services are P1005 (Accounting, auditing, book keeping services) and P1015 (Tax consulting services). AD banks report the code you choose 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.

P1002 vs P1019: P1019 is "Commission agent services" in the same Other Business Services group. Both codes describe commission. RBI's list does not explain where one ends and the other begins. The P1002 wording ties the commission to exports or imports, so P1002 is the closer match when the commission is earned on a cross-border trade deal. For commission agent work that is not linked to an export or import, P1019 is the closer match. Ask your AD bank if you are unsure.

Use the P1002 purpose code when a foreign party pays you commission for arranging or facilitating an export or import transaction. Typical cases are buying agents who source goods in India for a foreign importer, selling agents who find Indian buyers for a foreign manufacturer, and brokers who bring a foreign buyer and seller together. The deciding question is what your agreement and invoice describe. Group 10 of the RBI purpose code list has related codes, so check the alternatives below before you choose P1002.

• Use P1019 instead: Use P1019 (Commission agent services) when the commission is for agency work that is not tied to an export or import of goods.
• Use P0108 instead: Use P0108 (Goods sold under merchanting / Receipt against export leg of merchanting trade) when you buy and resell the goods yourself instead of earning a commission.
• Use P1020 instead: Use P1020 (Wholesale and retailing trade services.) when the receipt is for wholesale or retail trade services rather than an agent's commission.

The P1002 purpose code is used by Indian residents who earn commission from foreign parties on export or import deals, such as indenting agents, buying and sourcing agents, selling agents and trade brokers. The Indian recipient of the commission declares P1002 to the AD bank or payment provider that credits the foreign currency.

• For example, a sourcing agent in Tiruppur finds garment factories for a German retailer and receives a 5% commission on each order the retailer places, declared under P1002.
• For example, a selling agent in Pune represents a Japanese machinery maker and is paid commission from Japan on machines sold to Indian buyers, declared under P1002.
• For example, a broker in Kochi connects a Vietnamese spice buyer with an Indian exporter and receives a commission from the Vietnamese buyer, declared under P1002.
• For example, a handicrafts buying agent in Jaipur inspects goods and coordinates shipments for a US importer and receives a commission per consignment under P1002.

• You are the exporter and the foreign buyer pays you for the goods you shipped. Use An export of goods code from group 01, such as P0102 (Realisation of export bills (in respect of goods) sent on collection (full invoice value) – Other than Nepal and Bhutan).
• You buy goods from one foreign party and sell them to another on your own account. Use P0108 (Goods sold under merchanting / Receipt against export leg of merchanting trade).
• The foreign client pays you for accounting, auditing or bookkeeping work. Use P1005 (Accounting, auditing, book keeping services).
• The foreign client pays you for tax advice. Use P1015 (Tax consulting services).

For the P1002 purpose code, the core documents are the commission invoice, the agency or commission agreement, 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 with the full export value within 30 days from the end of the month in which the invoice was raised. For services other than software, the EDF may instead be submitted on or before the date of receipt of payment.

• Invoice: Raise an invoice to the foreign party naming the trade deal, the order or shipment it relates to, the commission rate, the amount and the currency.
• Agreement: Keep the agency agreement, commission letter or email confirmation that shows who pays the commission and on what basis.
• Deal records: Keep purchase orders, shipment details or sales confirmations for the deals that earned the commission, so the commission can be matched to real trade.
• EDF: Submit the Export Declaration Form to an Authorised Dealer in the DTA, or to the Development Commissioner in an SEZ. Regulation 3(2)(a) lets one EDF cover all services exported to one or more recipients in a month. See how the EDF works.
• EDPMS: Under Regulation 4(2), where an invoice for services is up to ₹10 lakh, the EDPMS entry may be closed on your declaration that the payment has been realised.

1. Check the agreement and invoice to confirm the payment is a commission earned on an export or import deal, and not the price of goods or a fee for another service.
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 P1002 from the purpose code list, or write the code and its description if the form asks for text.
4. Attach or keep ready the commission invoice, the agreement and the 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 P1002, 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. Keep it with the matching commission invoice. Check with your AD bank on the exact format it issues.
• GST status: Commission from a foreign party is an export of services only if all five conditions in section 2(6) of the IGST Act are met, including the place of supply being outside India. An agent who arranges a supply between two other persons is an "intermediary" under section 2(13).
• Intermediary rule: Section 13(8)(b) of the IGST Act used to place intermediary services at the supplier's location in India. CBIC's current text of section 13 shows that clause omitted by section 157 of the Finance Act, 2026. Confirm the date this took effect, and how it applies to earlier invoices, with a tax professional.
• Zero rating: Export of services is a zero rated supply under section 16(1)(a) of the IGST Act. Section 16(3) allows zero rated supplies without payment of integrated tax under bond or Letter of Undertaking, filed as FORM GST RFD-11.
• Income tax: The purpose code does not change how the commission is taxed. Commission 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 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.

• Old meaning: Treating P1002 as the code for accounting, auditing or tax consulting. RBI's current list has P1005 (Accounting, auditing, book keeping services) and P1015 (Tax consulting services) for that work.
• Goods price: Declaring P1002 on the full value of goods you sold yourself. P1002 is for the commission only, and payment for goods you export uses a group 01 export code.
• Merchanting: Using P1002 when you bought and resold the goods on your own account, where P0108 describes a merchanting receipt.
• Wrong direction: Using P1002 when you pay commission to a foreign agent. Payments out of India use S codes, and RBI lists S1002 with the same description for outward commission.
• Catch-all code: Using P1099 (Other services not included elsewhere) when P1002 or P1019 describes the commission.
• No EDF: Assuming a commission receipt needs no declaration. From October 01, 2026, Regulation 3(2) requires an EDF for services. Read what a wrong code can lead to.

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, receipts: Group 10 Other Business Services (P1002, P1003, P1004, P1005, P1006, P1015, P1019, P1020, P1099); Group 01 Exports (P0102, P0108); payments list S1002 (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); 2(1)(f) (specified authority); 3(2), 3(2)(a), 3(2)(b) (EDF for services); 4(2) (EDPMS closure up to ₹10 lakh); 5(1)(a) (realisation period); 18(2) (FETERS reporting) (checked 9 Oct 2026)
4. IGST Act, 2017, Section 2: Definitions (CBIC tax information portal), Section 2(6): export of services; section 2(13): intermediary (checked 9 Oct 2026)
5. IGST Act, 2017, Section 13: Place of supply of services where location of supplier or location of recipient is outside India (CBIC tax information portal), Section 13(2) and 13(8); footnote 3: clause (b) omitted by section 157 of the Finance Act, 2026 dated 30.03.2026 (checked 9 Oct 2026)
6. IGST Act, 2017, Section 16: Zero rated supply (CBIC tax information portal), Section 16(1)(a) and 16(3): zero rated supply, supply under bond or Letter of Undertaking (checked 9 Oct 2026)
7. GST Portal user manual: Furnishing of Letter of Undertaking (FORM GST RFD-11), Filing of LUT in FORM GST RFD-11 (checked 9 Oct 2026)
8. CBIC Circular No. 159/15/2021-GST: Clarification on doubts related to scope of Intermediary, 20 September 2021, Paras 3.1 to 3.4: minimum of three parties, two distinct supplies, supply on own account excluded (checked 9 Oct 2026)
9. 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)
10. RBI A.P. (DIR Series) Circular No. 20 dated January 16, 2026: Export and Import of Goods and Services, Paragraphs 4 and 7: Master Direction on Export of Goods and Services and listed circulars superseded from October 01, 2026 (checked 9 Oct 2026)