What Is the P1005 Purpose Code?

The P1005 purpose code covers money received from abroad that matches the RBI wording "Accounting, auditing, book keeping services". RBI lists P1005 in Other Business Services group. In plain terms, P1005 applies when a foreign client pays you to maintain its books, prepare its accounts or audit its records. Legal, tax advisory and other consultancy work have their own codes in the same group: P1004 (Legal services), P1015 (Tax consulting services) and P1006 (Business and management consultancy and public relations services). 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.

P1005 vs P1015: P1015 is "Tax consulting services" in the same Other Business Services group. Both codes serve finance professionals. If the invoice is for tax advice or tax planning, P1015 is the closer match. If it is for keeping books, preparing accounts or auditing, P1005 is the closer match. A mixed engagement may need the main component to decide.

Use the P1005 purpose code when a foreign client pays you for accounting, auditing or bookkeeping. Typical cases are monthly bookkeeping, preparation of financial statements, payroll accounting records, statutory or internal audits and reconciliations. The deciding question is what your invoice and contract describe. Group 10 of the RBI purpose code list has separate codes for closely related services, so check the alternatives below before you choose P1005.

• Use P1015 instead: Use P1015 (Tax consulting services) when the client pays mainly for tax advice or tax planning.
• Use P1006 instead: Use P1006 (Business and management consultancy and public relations services) when the advice is about strategy or operations rather than the books.
• Use P1004 instead: Use P1004 (Legal services) when the work is legal advice or drafting.

The P1005 purpose code is used by Indian residents who sell accounting, audit or bookkeeping services to clients outside India, such as chartered accountants, freelance bookkeepers, finance outsourcing firms and audit firms. The Indian recipient of the payment declares P1005 to the AD bank that credits the foreign currency.

• For example, a freelance bookkeeper in Jaipur maintains the monthly books of a Canadian online store and declares P1005 on each payment.
• For example, a chartered accountancy firm in Chennai audits the accounts of an Indian subsidiary reported to a US parent and bills the parent under P1005.
• For example, a finance outsourcing team in Hyderabad prepares monthly financial statements for a UK agency and receives its fee under P1005.
• For example, an accountant in Kolkata reconciles bank and ledger records for a Singapore trading company and declares P1005.

• The client pays for tax advice or tax planning. Use P1015 (Tax consulting services).
• The client pays for legal advice or legal drafting. Use P1004 (Legal services).
• The client pays for strategy or management consulting. Use P1006 (Business and management consultancy and public relations services).
• The work is accounting software development or customisation. Use P0802 (Software consultancy/implementation (other than those covered in SOFTEX form)).

For the P1005 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 P1005.
• 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.
• Work evidence: Keep reconciliations, financial statements or audit reports delivered to the client, in case the bank or a tax officer asks what was supplied.
• 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 accounting, auditing or bookkeeping work.
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 P1005 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 P1005, 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. Accounting or audit work for a foreign client may qualify, but the place of supply depends on the facts of the engagement, so confirm with a GST professional if the client has a presence in India. 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.

• Tax advice: Declaring P1005 when the invoice is mainly for tax planning, which RBI lists as P1015 (Tax consulting services).
• Assumed meaning: Treating P1005 as a general finance consulting code. RBI lists management consulting under P1006.
• Software work: Declaring P1005 for accounting software development, where P0802 describes the service.
• Catch-all code: Using P1099 (Other services not included elsewhere) when P1005 describes the service.
• Personal codes: Selecting a transfer code such as P1301 (family maintenance) for professional fees, which misstates the nature of the receipt.
• No EDF: Assuming accounting work 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 10 Other Business Services: P1002, P1004, P1005, P1006, P1007, P1015, P1016, P1099 (receipts); Group 08 P0802; 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)