Which RBI Purpose Code Should You Use for Digital Marketing Services?
- Author:
- Manoj Sharma
- Verified by:
- Editorial team
- Published:
- Last modified:
Short answer
The purpose code for digital marketing services depends on the work delivered, because RBI's list has no code named digital marketing. P1007, "Advertising, trade fair service", is the closest description for advertising and campaign work. P1006 suits marketing strategy and public relations, and P1016 suits market research. Confirm the choice with your AD bank.
| Applies to | Governed by | Deadline | Penalty | Last verified |
|---|---|---|---|---|
| Indian agencies, freelancers and consultants who run or advise on marketing for 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 digital marketing services mean?
A purpose code for digital marketing services is the RBI code that tells your AD bank why foreign currency came in. RBI's current FETERS purpose code list has no entry named digital marketing, so the code is chosen by the nature of the work. Banks report it in FETERS (Circular No. 84).
- Advertising work: Campaign planning, paid media management and creative for advertisements map to P1007, "Advertising, trade fair service".
- Strategy and PR: Marketing strategy advice and media relations map to P1006, "Business and management consultancy and public relations services".
- Research: Audience or market studies map to P1016, "Market research and public opinion polling service".
- Software work: Building tracking, automation or analytics software for a client maps to P0802, "Software consultancy/implementation (other than those covered in SOFTEX form)", or P0807, "Off-site Software Exports".
A single engagement can mix several of these. Pick the code that matches the largest part of the invoice, or ask the AD bank whether it accepts separate invoices for separate services.
Who needs to choose a purpose code for digital marketing services?
Anyone in India who invoices a foreign client for marketing work and receives the money in foreign currency needs to choose a purpose code. The right code differs by the type of service sold.
| Type of work | Closest code | Why | Best for |
|---|---|---|---|
| Paid advertising management and ad creative | P1007 | The RBI description names advertising | Performance marketing freelancers and agencies |
| Marketing strategy, brand advice, media relations | P1006 | The description covers business consultancy and public relations | Consultants and PR practitioners |
| Audience research and surveys | P1016 | The description names market research and polling | Research freelancers |
| Marketing analytics or automation software built for a client | P0802 or P0807 | These cover software services; see the P0802 and P0807 pages | Marketing technology developers |
| Work that fits none of the above | P1099 | The description is for other services not included elsewhere | Niche services; confirm with the AD bank |
How do you select the purpose code for digital marketing services?
You select the code by matching the service on your invoice to the RBI description and then confirming it with your AD bank. The same code is entered on the bank or payment dashboard when you set up the receipt.
- Write down what you actually deliver to the client, such as ad management, content, strategy or research.
- Compare it with the descriptions in the current FETERS purpose code list.
- Pick the single code that fits the main part of the invoice.
- Use the same service wording on the invoice that the code describes.
- Choose that code in the dashboard or form your bank provides, and keep the invoice with the remittance advice.
Which code fits search engine optimisation or social media management?
RBI's list does not name these services. Banks apply the closest description, which is often P1007 for promotion work or P1099 for other services. Ask your AD bank which code it accepts for your service and keep its reply.
Is P1007 the same as P1006 for marketing work?
They are different codes. P1007 is "Advertising, trade fair service", which fits advertising. P1006 is "Business and management consultancy and public relations services", which fits advice and public relations. See P1006 and P1007.
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 is usually a short version of 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 digital marketing 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 marketing service 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 digital marketing 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 digital marketing 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 digital marketing work may use.
| Circular or regulation | Clause | Date | Plain meaning | Best for |
|---|---|---|---|---|
| A.P. (DIR Series) Circular No. 84 annex | P1007 | 29 February 2012 | RBI description: "Advertising, trade fair service" | Advertising and campaign work |
| A.P. (DIR Series) Circular No. 84 annex | P1006 | 29 February 2012 | RBI description: "Business and management consultancy and public relations services" | Strategy and public relations |
| A.P. (DIR Series) Circular No. 84 annex | P1016 | 29 February 2012 | RBI description: "Market research and public opinion polling service" | Market research |
| A.P. (DIR Series) Circular No. 84 annex | P0802 | 29 February 2012 | RBI description: "Software consultancy/implementation (other than those covered in SOFTEX form)" | Marketing software consulting |
| A.P. (DIR Series) Circular No. 84 annex | P1099 | 29 February 2012 | RBI description: "Other services not included elsewhere" | Services that fit 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 digital marketing services?
- Assuming a code exists: Searching the RBI list for the words digital marketing and, finding none, picking an unrelated code.
- Copying a peer: Using the code a friend used for a different service.
- Invoice mismatch: Declaring one code while the invoice describes a different service.
- Mixed invoices: Putting strategy, ads and software in a single line item with 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.
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
Is there a separate RBI purpose code for digital marketing?
No. The current FETERS purpose code list has no entry named digital marketing. Exporters use the closest description for the work delivered, such as P1007 for advertising, P1006 for business consultancy and public relations, or P1016 for market research. Confirm the choice with your AD bank.
Which purpose code is used for Google Ads or Meta Ads management fees?
P1007, "Advertising, trade fair service", is the closest listed description for advertising management. RBI does not map specific ad platforms to codes. Ad spend that you pay out of client funds is a separate matter, so ask your AD bank how to treat it.
Can P1006 be used for marketing consulting?
Yes, if the work is business or marketing strategy advice. P1006 is "Business and management consultancy and public relations services". The description names business and management consultancy and public relations. If the work is mainly running campaigns, P1007 is the closer match.
Does the digital marketing purpose code affect GST on the invoice?
The code does not decide GST status. Whether the service is an export of services depends on the five conditions in section 2(6) of the IGST Act. A zero rated supply under section 16 of the IGST Act needs those conditions and a LUT or tax payment.
What is the FIRA for digital marketing receipts?
A FIRA is the inward remittance advice your bank or provider issues for a foreign receipt. It normally records the purpose of the payment, so the code you declare appears in it. Check with your AD bank on its format. See what is a FIRA.
Can one invoice carry two purpose codes for marketing work?
Check with your AD bank. A payment is usually reported under one code, so mixed work is often split into separate invoices, each matched to its own code. The bank decides what it accepts. Keeping the invoice wording close to the RBI description also helps the bank match the receipt.