What Is the P1007 Purpose Code?

The P1007 purpose code covers money received from abroad that matches the RBI wording "Advertising, trade fair service". RBI lists P1007 in Other Business Services group. In plain terms, P1007 applies when a foreign client pays you to create, place or run advertising, or to provide trade fair services. Public relations advice sits in P1006 (Business and management consultancy and public relations services), and surveys sit in P1016 (Market research and public opinion polling service). 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.

P1007 vs P1006: P1006 is "Business and management consultancy and public relations services" in the same Other Business Services group. Both codes serve marketing professionals. If the invoice is for advertising campaigns or trade fair work, P1007 is the closer match. If it is for public relations or business advice, P1006 is the closer match.

Use the P1007 purpose code when a foreign client pays you for advertising or trade fair services. Typical cases are advertising campaign design and placement, creative work for advertisements and trade fair stand or exhibition services. 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 P1007. For digital marketing work, read purpose code for digital marketing services and confirm the classification with your AD bank.

• Use P1006 instead: Use P1006 (Business and management consultancy and public relations services) when the client pays for PR or marketing strategy advice.
• Use P1016 instead: Use P1016 (Market research and public opinion polling service) when the client pays for surveys, research or polling.
• Use P0802 instead: Use P0802 (Software consultancy/implementation (other than those covered in SOFTEX form)) when the work is software development rather than advertising.

The P1007 purpose code is used by Indian residents who sell advertising or trade fair services to clients outside India, such as advertising agencies, creative studios, freelance ad designers and exhibition service providers. The Indian recipient of the payment declares P1007 to the AD bank that credits the foreign currency.

• For example, an advertising agency in Mumbai produces a campaign for a US consumer brand and receives its fee under P1007.
• For example, a freelance copywriter in Bengaluru writes advertisements for a UK retailer and declares P1007 on the payment.
• For example, an exhibition services firm in Delhi builds and manages a trade fair stand for a German company and bills it under P1007.
• For example, a creative studio in Pune designs print and outdoor advertisements for an Australian client and declares P1007.

• The client pays for public relations or media relations advice. Use P1006 (Business and management consultancy and public relations services).
• The client pays for surveys, polling or market research. Use P1016 (Market research and public opinion polling service).
• The work is building a website or app. Use P0802 (Software consultancy/implementation (other than those covered in SOFTEX form)).
• The payment does not fit any listed purpose. Use P1099 (Other services not included elsewhere).

For the P1007 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 P1007.
• 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.
• Campaign records: Keep creative briefs, approved designs, campaign reports or trade fair deliverables shared with 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 advertising or trade fair services.
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 P1007 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 P1007, 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. Advertising work for a foreign client may qualify, but the place of supply depends on the facts, so confirm with a GST professional where campaigns target audiences or events 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.

• PR work: Declaring P1007 for media relations or public relations advice, which RBI lists under P1006.
• Research fees: Using P1007 for surveys or research, where P1016 describes the service.
• Software work: Declaring P1007 for website or app development because it supports a campaign, where P0802 describes the service.
• Catch-all code: Using P1099 (Other services not included elsewhere) when P1007 describes the service.
• Personal codes: Selecting a transfer code such as P1301 (family maintenance) for agency fees, which misstates the nature of the receipt.
• No EDF: Assuming advertising 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, P1005, P1006, P1007, P1016, P1019, 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)