Which RBI Purpose Code Should You Use for Consulting Services?
- Author:
- Manoj Sharma
- Verified by:
- Editorial team
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Short answer
The purpose code for consulting services depends on the subject of the advice. P1006, "Business and management consultancy and public relations services", is the general code for business and management consultancy. P0802 covers software consultancy, P1015 covers tax consulting, and P1099 covers other services. Choose by the advice delivered and confirm with your AD bank.
| Applies to | Governed by | Deadline | Penalty | Last verified |
|---|---|---|---|---|
| Indian consultants, advisory firms and freelancers who advise clients outside India and receive foreign currency | A.P. (DIR Series) Circular No. 84 (purpose codes); FEMA (Export and Import of Goods and Services) Regulations, 2026, Regulation 18(2) | Declare the code when the payment is received; the Export Declaration Form for services is due within 30 days of the end of the invoice month | Not applicable: no penalty specific to a wrong purpose code is published; the practical risk is mismatched records | 9 Oct 2026 |
What does a purpose code for consulting services mean?
A purpose code for consulting services is the RBI code that tells your AD bank the foreign payment is for advice. RBI's current FETERS purpose code list has several consultancy codes, each tied to a subject. Banks report the code in FETERS (Circular No. 84).
- Business advice: Strategy, operations and management advice map to P1006, "Business and management consultancy and public relations services".
- Software advice: Advice on designing or implementing software maps to P0802, "Software consultancy/implementation (other than those covered in SOFTEX form)".
- Hardware advice: Advice on hardware maps to P0801, "Hardware consultancy/implementation".
- Tax advice: Tax consulting has its own code, P1015, "Tax consulting services".
- Other advice: Specialist advice with no listed code may fit P1099, "Other services not included elsewhere".
The word consulting alone does not select a code. The subject of the advice does.
Who needs to choose a purpose code for consulting services?
Anyone in India who invoices a foreign client for advice and receives foreign currency needs to choose a purpose code. The subject of the advice decides which code applies.
| Type of consulting | Closest code | Why | Best for |
|---|---|---|---|
| Business strategy, operations, management | P1006 | The description names business and management consultancy | Management consultants and advisers |
| Software architecture or implementation advice | P0802 | The description names software consultancy and implementation | IT consultants |
| Hardware consultancy | P0801 | The description names hardware consultancy and implementation | Infrastructure advisers |
| Tax advice for a foreign client | P1015 | The description names tax consulting services | Tax professionals |
| Engineering or architectural advice | P1014 or P1009 | These codes name engineering and architectural services | Technical consultants |
| Advice with no listed code | P1099 | The description is for other services not included elsewhere | Niche advisers; confirm with the AD bank |
How do you select the purpose code for consulting services?
You select the code by matching the subject of your advice to the RBI description, then confirming it with your AD bank. The same code is chosen on the bank or payment dashboard when you set up the receipt.
- Write down the subject of the advice you give, such as strategy, software, tax or engineering.
- Compare it with the descriptions in the current FETERS purpose code list.
- Pick the single code that matches the largest part of the engagement.
- Describe the service on the invoice in words close to the RBI description.
- Choose the code in your bank or payment dashboard and keep the invoice with the remittance advice.
Is P1006 or P0802 the right code for IT consulting?
P0802 is "Software consultancy/implementation (other than those covered in SOFTEX form)", which fits advice on software systems. P1006 fits advice on the business itself. If the advice is about building or implementing software, P0802 is the closer match. See P0802 vs P0807 and P1006.
Which code fits a retainer that mixes advice and execution?
A mixed retainer can be split into separate invoices, each matched to one code. If you keep one invoice, choose the code for the main service and ask your AD bank whether it accepts that. The bank decides what it will report.
Where is the purpose code chosen on a bank or payment dashboard?
Most dashboards ask for the purpose of the payment when you add a client or request payment details. The list shown may be shorter than the RBI list, so match the wording to the RBI description and ask your AD bank if the options differ. See what an RBI purpose code is.
Which documents and deadlines matter when declaring a purpose code for consulting services?
The invoice, the engagement terms and the bank's remittance advice matter most. Two deadlines run on the same receipt: the Export Declaration Form for services is due within 30 days of the end of the invoice month (Regulation 3(2)), and realisation is due within nine months of the invoice date (Regulation 5). Your AD bank may extend the period.
| Item | What to check | Deadline or rule | Best for |
|---|---|---|---|
| Invoice | Describes the subject of the advice in words close to the RBI description | Keep with the bank advice; RBI sets no invoice format here | Every receipt |
| Engagement terms or email | Shows the client is abroad and what you deliver | Supports the bank's check of the purpose | Banks that ask for proof of the service |
| Purpose code on the bank advice | Code matches the service on the invoice | Declared when the payment is received | Receipts used for GST or eBRC records |
| Export Declaration Form for services | Invoice value declared to the AD bank | Within 30 days of the end of the invoice month (Regulation 3(2)); AD bank may extend | Exporters of services |
| Realisation | Foreign exchange credited against the invoice | Nine months from invoice date, or twelve months if invoiced or settled in INR (Regulation 5) | Exporters tracking open invoices |
What happens if the wrong purpose code is used for consulting services?
A wrong purpose code means the bank, RBI and your GST records describe the same payment differently. RBI publishes no penalty specific to a wrong purpose code. The practical effects are mismatched records and extra work to correct them. See what happens if you use the wrong purpose code.
- Record mismatch: AD banks report every foreign exchange transaction with a purpose code in FETERS (Circular No. 84), so the code you declare becomes part of the reported data.
- GST evidence: Export of services depends on all conditions in section 2(6) of the IGST Act being met. A FIRA that describes a different service from your invoice weakens the evidence file. See GST on export of services.
- Correction effort: Changing a code after credit needs a written request to the AD bank. See how to correct a wrong purpose code.
- Open items: If the bank cannot match the receipt to an invoice, closing the related export record may take longer. Check with your AD bank.
If the code is already wrong, write to the AD bank that credited the money, attach the invoice and ask for the correction in writing.
Which RBI rule lists the purpose codes for consulting services?
RBI lists the codes in the annex to Circular No. 84, and AD banks report them under FETERS. The table gives the verbatim RBI description for each code that consulting work may use.
| Circular or regulation | Clause | Date | Plain meaning | Best for |
|---|---|---|---|---|
| A.P. (DIR Series) Circular No. 84 annex | P1006 | 29 February 2012 | RBI description: "Business and management consultancy and public relations services" | Business and management advice |
| A.P. (DIR Series) Circular No. 84 annex | P0802 | 29 February 2012 | RBI description: "Software consultancy/implementation (other than those covered in SOFTEX form)" | Software consulting |
| A.P. (DIR Series) Circular No. 84 annex | P0801 | 29 February 2012 | RBI description: "Hardware consultancy/implementation" | Hardware consulting |
| A.P. (DIR Series) Circular No. 84 annex | P1015 | 29 February 2012 | RBI description: "Tax consulting services" | Tax advice |
| A.P. (DIR Series) Circular No. 84 annex | P1099 | 29 February 2012 | RBI description: "Other services not included elsewhere" | Advice that fits no other code |
| FEMA (Export and Import of Goods and Services) Regulations, 2026 | Regulation 18(2) | In force 1 October 2026 | AD banks continue to report foreign trade transactions in FETERS | Understanding who reports the code |
| A.P. (DIR Series) Circular No. 84 | Paragraph 3 | 29 February 2012 | AD banks report all foreign exchange transactions with the revised purpose codes | Finding the source of the code list |
What are common mistakes when choosing a purpose code for consulting services?
- Defaulting to P1006: Using P1006 for every engagement when the advice is about software, tax or engineering.
- Subject mismatch: Declaring a code that does not match the subject written on the invoice.
- Vague invoices: Writing consulting services on the invoice with no subject, which leaves the bank guessing.
- Mixed invoices: Billing advice and delivery work in one line item under one code.
- Skipping the bank: Not asking the AD bank when the dashboard list shows fewer options than the RBI list.
- Ignoring GST: Treating the code as proof of export status. Export of services under GST depends on the conditions in section 2(6) of the IGST Act, including place of supply.
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, A.P. (DIR Series) Circular No. 84 dated 29 February 2012, annex: FETERS purpose code list, Purpose code descriptions and groups (checked 9 Oct 2026)
- RBI A.P. (DIR Series) Circular No. 84 dated 29 February 2012: Compilation of R-Returns, Reporting under FETERS, Paragraph 3: purpose codes for all foreign exchange transactions reported in FETERS (checked 9 Oct 2026)
- Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026, Notification FEMA 23(R)/2026-RB, as amended by FEMA 23(R)/(1)/2026-RB dated 22 September 2026, Regulations 3(2), 5 and 18(2) (checked 9 Oct 2026)
- RBI A.P. (DIR Series) Circular No. 20, RBI/2025-26/194: Export and Import of Goods and Services (16 January 2026), Supersession of earlier Master Directions and SOFTEX circulars from 1 October 2026 (checked 9 Oct 2026)
- IGST Act, 2017, section 2: definitions, Section 2(6): export of services (checked 9 Oct 2026)
- IGST Act, 2017, section 16: zero rated supply, Section 16(1)(a), 16(2), 16(3) (checked 9 Oct 2026)
- GST portal, user guide: Furnishing of Letter of Undertaking, LUT filing as FORM GST RFD-11 (checked 9 Oct 2026)
Frequently asked questions
What is the purpose code for management consulting?
The closest code is P1006, "Business and management consultancy and public relations services". The description names business and management consultancy and public relations services. Confirm with your AD bank that the dashboard or form offers P1006 for your engagement. Keep the invoice wording close to that description so the bank can match the receipt easily.
What is the purpose code for IT consulting services?
P0802, "Software consultancy/implementation (other than those covered in SOFTEX form)", covers software consultancy and implementation. Advice on hardware falls under P0801, "Hardware consultancy/implementation". Match the code to what you advise on and ask your AD bank if the choice is unclear.
Is there a purpose code for tax consulting services?
Yes. The RBI list has P1015, "Tax consulting services". Use it when a foreign client pays you for tax advice. Other advice, such as business strategy, uses its own code. See the list at the RBI source. Keep the invoice wording close to that description so the bank can match the receipt easily.
Does the consulting purpose code decide whether GST applies?
No. GST status depends on the five conditions in section 2(6) of the IGST Act, including the place of supply and payment in convertible foreign exchange. A zero rated supply under section 16 of the IGST Act also needs a LUT or tax payment.
How long does a consultant have to receive payment from a foreign client?
The export value of services must be realised within nine months of the invoice date, or twelve months if invoiced or settled in Indian rupees (Regulation 5). The AD bank may extend the period on request. Keep track of open invoices so the deadline is not missed.
Can a consultant use P1099 for advice with no listed code?
P1099 is "Other services not included elsewhere". It is meant for services the list does not name. Use it only when no more specific code fits, and keep the invoice description clear so the bank can see why. Check with your AD bank before relying on it.