Sending payments to India
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| Sending payments to India | |||
| Key points : | |||
| When sending payments to India, it is required to have a purpose code in the remittance information. This document is intended to help you navigate the list of purpose codes to use when sending payments to India. Below, you can find a list of most common purpose codes. This list is non-exhaustive, other purpose codes are available in Appendix I in Currency Guide. We highly recommend that you use the exact purpose of payment matching the purpose code in Appendix 1. The code and the matching description should be present in the remittance information. If a code is not present in Appendix 1, it should not be used. Even if it was used in the past, it may be discontinued today. Please note that some purpose codes require additional information to be provided such as the family relationship and payment could be delayed or rejected if those additional information are not present. | |||
| Category | Code | Description | Comment / Attention point |
| Foreign Direct Investment | |||
| P0005 | Repatriation of Indian investment abroad in real estate | FDI : real estate investment | |
| P0006 | Foreign Direct Investment made by overseas Investors in India in equity shares | FDI : equity shares Attention point : additional information is requested, see Appendix 1 | |
| Exports (of Goods) | |||
| P0101 | Value of export bills negotiated / purchased/discounted etc (covered under GR/PP/SOFTEX/EC copy of shipping bills etc.) – Other than Nepal and Bhutan | ||
| P0102 | Realisation of export bills (in respect of goods) sent on collection (full invoice value) – Other than Nepal and Bhutan | ||
| P0103 | Advance receipts against export contracts, which will be covered later by GR/PP/SOFTEX/SDF – other than Nepal and Bhutan | Advance payment | |
| P0108 | Goods sold under merchanting / Receipt against export leg of merchanting trade | Attention point : definition of merchanting - see Appendix 1. Applicable only if goods acquired do not enter the territory of the compiling (resident’s) economy | |
| Transportation | |||
| P0201 | Receipts of surplus freight/passenger fare by Indian shipping companies operating abroad | Shipping / transportation service : shipping by waterways outside of India | |
| P0223 | Receipts on account of passenger fare under other modes of transport (Internal Waterways, Roadways, Railways, Pipeline transports and Others) | Shipping / transportation service : all others | |
| Travel | |||
| P0301 | Purchases towards travel (Includes purchases of foreign TCs, currency notes etc over the counter, by hotels, Emporiums, institutions etc. as well as amount received by TT/SWIFT transfers or debit to Non-Resident account) | General purpose code for travel | |
| P0302 | Business travel | Expenses linked to business travel | |
| P0305 | Travel for education including TCs purchased by educational | Specific purpose code for education travel (study in India, training program, etc.) | |
| P0306 | Other travel receipts | ||
| Financial Services | P0701 | Financial intermediation except investment banking – Bank charges, collection charges, LC charges, etc. | |
| Insurance and Pension Services | |||
| P0603 | Other general insurance premium including reinsurance premium; and term life insurance premium | ||
| P0607 | Receipts on account of Auxiliary services ( commission on insurance). | ||
| Telecommunication, Computer & Information Services | |||
| P0801 | Hardware consultancy/implementation | ||
| P0802 | Software consultancy/implementation (other than those covered in SOFTEX form) | ||
| P0803 | Data base, data processing charges | ||
| P0804 | Repair and maintenance of computer and software | ||
| P0806 | Other information services- Subscription to newspapers, periodicals, etc. | ||
| Other Business Services | |||
| P1002 | Trade related services – commission on exports / imports | ||
| P1004 | Legal services | ||
| P1005 | Accounting, auditing, book keeping services | ||
| P1006 | Business and management consultancy and public relations services | ||
| P1007 | Advertising, trade fair service | ||
| P1008 | Research & Development services | ||
| P1009 | Architectural services | ||
| P1014 | Engineering Services | ||
| P1015 | Tax consulting services | ||
| P1019 | Commission agent services | ||
| Personal, Cultural & Recreational services | |||
| P1107 | Educational services (e.g. fees received for correspondence courses offered to non-resident by Indian institutions) | ||
| P1108 | Health Service (Receipts on account of services provided by Indian hospitals, doctors, nurses, paramedical and similar services etc. rendered remotely or on-site) | ||
| Government, not included elsewhere (G.n.i.e.) | P1201 | Maintenance of foreign embassies in India. | |
| Secondary Income | |||
| P1301 | Inward remittance from Indian non-residents towards family maintenance and savings | Specific for retail payment, not business related (family maintenance, medical treatment for family, etc.). Attention point : Definition of family as per attached RBI guidance needs to be provided. Other than that, not allowed. | |
| P1302 | Personal gifts and donations (FCRA certificate required) | Attention point : If beneficiary is an individual, definition of family as per attached RBI guidance needs to be provided. Other than that, not allowed. If beneficiary is a non-individual, FCRA certificate is required. | |
| P1303 | Donations to religious and charitable institutions in India | ||
| P1306 | Receipts / Refund of taxes | ||
| Primary Income | |||
| P1401 | Compensation of employees | ||
| P1499 | Other income receipts | ||
| Others | P1502 | Reversal of wrong entries, refunds of amount remitted for non-imports. | |
| Manufacturing services | P1701 | Receipts on account of processing of goods | |