What Is the Difference Between the P1003 and P1006 Purpose Codes?
- Author:
- Manoj Sharma
- Verified by:
- Editorial team
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Short answer
P1006 is the RBI purpose code for 'Business and management consultancy and public relations services'. P1003 is 'Operational leasing services (other than financial leasing) without operating crew, including charter hire- Airlines companies'. A consultant or freelancer paid for advice uses P1006. P1003 applies to leasing, not to technical or advisory work.
| Applies to | Governed by | Deadline | Penalty | Last verified |
|---|---|---|---|---|
| Indian service exporters choosing between two Group 10 (Other Business Services) purpose codes for an inward remittance | RBI FETERS purpose code list (A.P. (DIR Series) Circular No. 84, 29 February 2012) and the FEMA (Export and Import of Goods and Services) Regulations, 2026 | Not applicable for the code itself; export proceeds are due within the period in Regulation 5 of the 2026 Regulations | Not applicable; a wrong code can lead to bank queries and a correction request | 9 Oct 2026 |
What do the P1003 and P1006 purpose codes mean?
P1003 and P1006 both sit in the Other Business Services group of the RBI FETERS purpose code list, but they describe different activities. P1003 covers operational leasing and P1006 covers consultancy and public relations.
- P1003: RBI's description is 'Operational leasing services (other than financial leasing) without operating crew, including charter hire- Airlines companies'. See the P1003 page.
- P1006: RBI's description is 'Business and management consultancy and public relations services'. See the P1006 page.
- Title correction: This page was planned as 'Business Consultancy or Technical Services'. The RBI list does not describe P1003 as technical services, so this page follows the RBI wording.
The code describes the nature of the service in the invoice, not the profession of the person who raises it.
Who should use P1003 and who should use P1006?
A consultant, adviser or PR professional paid by a foreign client should look at P1006. A business that leases equipment, without operating crew, to a foreign party should look at P1003. Other service types have their own codes.
| Situation | Likely code | Why | Best for |
|---|---|---|---|
| Management or strategy consulting for a foreign company | P1006 | Matches 'Business and management consultancy' | Independent consultants and advisory firms |
| Public relations or media outreach for a foreign client | P1006 | Matches 'public relations services' | PR professionals and agencies |
| Leasing equipment without operating crew to a foreign party | P1003 | Matches 'Operational leasing services (other than financial leasing) without operating crew' | Lessors of equipment, as the bank confirms |
| Engineering design or technical work | Check P1014 | RBI lists 'Engineering Services' as a separate code | Engineering service providers |
| Software work for a foreign client | Check P0802 or P0807 | RBI lists software codes in Group 08 | Developers and IT firms |
How do you choose between P1003 and P1006?
Read the invoice and contract description, find the RBI wording that matches it, and give that code to your bank. If the work is advisory, P1006 is the closer match. If the invoice bills for equipment hire, P1003 may apply.
- Write down in one line what the client pays for, using the words on your invoice.
- Compare that line with the RBI descriptions of P1003 and P1006 above.
- Check the neighbouring codes, such as P1007, P1004 and P1002, if the work is partly advertising, legal or commission-based.
- Quote the code and its description on the bank or payment dashboard, and keep the invoice that supports it.
- Ask your AD bank to confirm if the choice is unclear. Read what an RBI purpose code is for background.
Where do you enter the purpose code on a dashboard?
Banks and payment providers usually ask for the purpose code when you add an invoice or confirm an incoming credit. The screen layout differs by provider, so check which field your provider uses.
- Match the code to the invoice, not to your job title.
- Keep the invoice with the remittance record.
Can a consultant ever use P1003?
Only if the invoice is for operational leasing without operating crew. Advice, reports and project delivery do not fit that description, and the P1006 wording is the closer match.
- Ask your bank when an invoice mixes leasing and advisory items.
- Consider splitting invoices by service type.
Which other codes are often confused with P1003 and P1006?
Group 10 has several nearby codes. The table lists them with RBI's wording so you can compare them with your invoice.
| Code | RBI description | Use when | Best for |
|---|---|---|---|
| P1002 | Trade related services – commission on exports / imports | You earn a commission on a trade deal | Agents and intermediaries |
| P1004 | Legal services | The client pays for legal work | Lawyers and law firms |
| P1006 | Business and management consultancy and public relations services | The client pays for advice or PR | Consultants and PR professionals |
| P1007 | Advertising, trade fair service | The client pays for advertising or trade fair services | Advertising agencies |
| P1014 | Engineering Services | The client pays for engineering work | Engineering firms |
| P1015 | Tax consulting services | The advice is about tax | Tax advisers |
What happens if you choose the wrong code between P1003 and P1006?
A wrong code does not usually stop the money, but it can cause a bank query and a request to correct the record. The sooner you raise it, the simpler the correction tends to be.
- FIRA: The remittance advice may show a purpose that does not match your invoice. Auditors and officers compare the two.
- GST: Section 2(6) of the IGST Act defines export of services by reference to the supply and the payment received. A mismatched record can slow a refund claim under Rule 89.
- Bank: Your AD bank reports under FETERS, which Regulation 18(2) of the 2026 Regulations continues. Wrong codes can prompt questions.
Contact your bank soon after the credit, share the invoice and ask what its correction process is. See correct purpose code after payment and wrong purpose code consequences.
Which RBI rule says this?
The code wording comes from the FETERS list. The export rules that govern realisation come from the 2026 Regulations.
| Circular or regulation | Clause | Date | Plain meaning | Best for |
|---|---|---|---|---|
| A.P. (DIR Series) Circular No. 84 (FETERS purpose code list) | Group 10, Other Business Services | 29 February 2012 | Lists P1003 and P1006 with their official descriptions | Choosing a code |
| FEMA (Export and Import of Goods and Services) Regulations, 2026, FEMA 23(R)/2026-RB | Regulation 5 | In force from 1 October 2026 | Sets the time to realise export proceeds; an AD bank may extend it | Planning receipts |
| A.P. (DIR Series) Circular No. 20 | Supersession | 16 January 2026 | Supersedes the earlier export Master Directions from 1 October 2026 | Understanding the rule change |
What mistakes do people make with P1003 and P1006?
- Job title: Choosing a code from the profession, rather than from what the invoice describes.
- Assuming technical: Treating P1003 as a technical services code. RBI's wording is about operational leasing.
- Copying: Reusing the code from an earlier client without checking the new invoice.
- Mixed invoices: Bundling leasing and advisory work in one invoice without telling the bank.
- No record: Not keeping the invoice that supports the chosen code.
How did we verify this?
Every rule, deadline and form on this page is linked to its official source, checked on the dates below.
- RBI, Purpose code list for FETERS (A.P. (DIR Series) Circular No. 84), Group 10, codes P1003 and P1006 (checked 9 Oct 2026)
- RBI, FEMA (Export and Import of Goods and Services) Regulations, 2026, Regulations 5 and 18(2) (checked 9 Oct 2026)
- RBI, A.P. (DIR Series) Circular No. 20 dated 16 January 2026 (checked 9 Oct 2026)
- IGST Act, 2017, Section 2, Section 2(6) (checked 9 Oct 2026)
- CGST Rules, Rule 89 (checked 9 Oct 2026)
Frequently asked questions
Is P1003 a technical services purpose code?
No. RBI's FETERS list describes P1003 as operational leasing services without operating crew, including charter hire for airline companies. Technical or engineering work is listed separately, for example P1014 for Engineering Services. Match your invoice to the RBI wording and ask your bank if unsure.
Which code does a freelance business consultant use, P1003 or P1006?
A freelance business consultant paid for advice generally matches P1006, 'Business and management consultancy and public relations services'. P1003 describes operational leasing. Choose the code that fits the invoice description and confirm with your AD bank when the work is mixed.
Does the P1006 code cover public relations work?
Yes. RBI's wording for P1006 includes public relations services together with business and management consultancy. Advertising is listed separately under P1007, so a campaign-focused invoice may fit that code instead. Compare the invoice with both descriptions before deciding, and keep the invoice with the remittance record so the bank can see why you chose that code.
Can the same client be billed under P1003 and P1006?
Yes, if the client buys two different services. Use separate invoices or clearly separate lines so each payment can carry the code that matches it. Tell your bank when one remittance covers both, and ask how it wants the purpose reported.
Where can the official purpose code list be read?
RBI publishes the FETERS purpose code list as an annexure to A.P. (DIR Series) Circular No. 84 dated 29 February 2012. The list is available as a PDF on the RBI document site. Check the descriptions there, since this page quotes them verbatim.
Who corrects a wrong purpose code after the credit?
Your AD bank handles corrections, usually on a written request with the invoice. Processes and timelines differ by bank, so ask the forex or trade desk. A payment provider may also have its own steps before the bank is involved.