What Is the P1008 Purpose Code?

The P1008 purpose code covers money received from abroad for research and development services. RBI lists P1008 in group 10, Other Business Services. The RBI description is the test: if your invoice describes research and development services, P1008 is the closest match. 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.

P1008 vs P1022: P1022 is "Other Technical Services including scientific/space services." in the same group. Both can describe technical or scientific work. If the client pays for research and development as such, P1008 is the closer match. If the work is a technical service that is not R&D, check P1022 and P1014 (Engineering Services).

Use the P1008 purpose code when a foreign client pays you for research and development 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 P1008.

• Use P1022 instead: Use P1022 (Other Technical Services including scientific/space services.) when the work is a technical or scientific service that is not research and development.
• Use P1014 instead: Use P1014 (Engineering Services) when the client pays for engineering design or engineering services.
• Use P0802 instead: Use P0802 (Software consultancy/implementation (other than those covered in SOFTEX form)) when the work is software consultancy or implementation.

The P1008 purpose code is used by Indian residents and entities that sell research and development services to customers outside India. The Indian recipient of the payment declares P1008 to the AD bank or payment provider that credits the foreign currency.

• For example, a pharmaceutical research firm in Hyderabad receives fees from a Swiss company for a contract research study and declares P1008.
• For example, an engineering design centre in Pune is paid by a German manufacturer for product development work and receives the payment under P1008.
• For example, a university lab spin-off in Chennai is paid by a US client to run experiments and report results, and declares P1008.
• For example, a materials scientist in Bengaluru bills a Japanese company for a research project and uses P1008 on the inward payment.

• The client pays only for surveys, market research or polling. Use P1016 (Market research and public opinion polling service).
• The client pays for engineering services. Use P1014 (Engineering Services).
• The work is software consultancy or implementation. Use P0802 (Software consultancy/implementation (other than those covered in SOFTEX form)).
• The client pays for a patent or trademark licence. Use P0902 (Receipts for use, through licensing arrangements, of produced originals or prototypes (such as manuscripts and films), patents, copyrights, trademarks, industrial processes, franchises etc.).

For the P1008 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 October 01, 2026, an exporter of services must furnish an EDF with the full export value. For services other than software, the EDF may be submitted on or before the date of receipt of payment. This changes paragraph B.7 of the Master Direction, superseded by A.P. (DIR Series) Circular No. 20, which let such services be exported without a declaration.

• Invoice: Raise an invoice naming the foreign client and describing the service, the period or deliverable, the amount and the currency.
• Contract: Keep the contract, 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. SOFTEX applied only to software.
• Work evidence: Keep the deliverables or records that show what was supplied, in case the bank or a tax officer asks.
• Bank requests: Your AD bank may ask for KYC details or the remitter's details. Under Regulation 4(2), invoices up to ₹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 research and development services.
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 P1008 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 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 P1008, 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 invoice. Check with your AD bank on the exact format it issues.
• GST status: Research and development work for a foreign client is an export of services only if all five conditions in section 2(6) of the IGST Act are met. These include the place of supply being outside India, so check the place of supply for your case with a tax professional. The place of supply rules can differ by the type of service.
• Zero rating: Export of services is a zero rated supply under section 16(1)(a) of the IGST Act, and input tax credit may be availed for it under section 16(2).
• LUT: Section 16(3) allows a registered person to make zero rated supplies without payment of integrated tax under bond or Letter of Undertaking. The LUT is filed as FORM GST RFD-11 on the GST portal.
• Income tax: The purpose code does not change how the income is taxed. Fees for these services are part of your income and are 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. The September 22, 2026 amendment cut these from fifteen and eighteen months. Your AD bank may extend the period on request.

• Assumed meaning: Treating P1008 as a general technology code. RBI describes it as Research & Development services.
• Market research: Declaring P1008 for survey or polling work, which RBI lists under P1016 (Market research and public opinion polling service).
• Software work: Using P1008 for software projects that P0802 describes.
• Catch-all code: Using P1099 (Other services not included elsewhere) when P1008 describes the service.
• IP licence: Declaring P1008 when the receipt is for licensing existing patents or copyrights, which sits in a separate group.
• No EDF: Assuming R&D work needs no declaration. From October 01, 2026, Regulation 3(2) requires an EDF for services, filed on or before the date of receipt of payment for services other than software.

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, Annex purpose codes, receipts, Group 10 Other Business Services: P1008 and related codes listed on this page (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 for services other than software); 3(2) and 3(2)(b) (EDF for services, on or before receipt of payment for non-software services); 4(2) (EDPMS closure up to ₹10 lakh); 5(1)(a) (nine months from invoice date, as amended on September 22, 2026); 18(2) (FETERS reporting) (checked 9 Oct 2026)
4. RBI A.P. (DIR Series) Circular No. 20 dated January 16, 2026: Export and Import of Goods and Services, Paragraphs 4 and 7 and Annex A: Master Direction on Export of Goods and Services and listed circulars, including the SOFTEX circulars, superseded from October 01, 2026 (checked 9 Oct 2026)
5. RBI: Export Declaration Form, Annex to the 2026 Regulations, Part 2B (details of services provided to multiple recipients) and Part 5 (certification by Custom, SEZ, Authorised Dealer or STPI) (checked 9 Oct 2026)
6. RBI Master Direction: Export of Goods and Services (updated as on July 17, 2026; superseded from October 01, 2026), Superseded from October 01, 2026; cited only to explain the earlier rule in paragraph B.7 (export of services without a specified form) (checked 9 Oct 2026)
7. IGST Act, 2017, Section 2: Definitions (CBIC tax information portal), Section 2(6): definition of export of services (checked 9 Oct 2026)
8. IGST Act, 2017, Section 16: Zero rated supply (CBIC tax information portal), Section 16(1)(a), 16(2) and 16(3): zero rated supply, input tax credit, supply under bond or Letter of Undertaking (checked 9 Oct 2026)
9. GST Portal user manual: Furnishing of Letter of Undertaking (FORM GST RFD-11), Filing path Services > User Services > Furnish Letter of Undertaking (LUT) (checked 9 Oct 2026)
10. Income Tax Department e-filing portal: Objective and scope of the New Act, Repeal of the 1961 Act on 01.04.2026 and the tax year concept (checked 9 Oct 2026)