What is purpose code P0807?

Purpose code P0807 is the off-site software export code in RBI's computer services group, P08. Off-site means the software work is done in India and delivered to the client abroad.⁶⁷ It has long been linked to the SOFTEX form, which software exporters used to declare their exports.

What does the P0807 purpose code cover?

The P0807 purpose code covers receipts for off-site software exports, meaning software work done in India and delivered abroad.⁶⁷ DGFT's purpose code to SAC mapping reproduces the same wording.⁴

• Official description: "Off-site Software Exports".⁶⁷
• BOP group: P08, "Telecommunication, Computer & Information Services".⁶
• Direction: receipt, meaning money coming into India.¹
• Source list: A.P. (DIR Series) Circular No. 84 dated 29 February 2012 told banks to report all foreign exchange transactions under a revised purpose code list from April 2012.¹

RBI's annex PDF showed a captcha page when this page was checked, so the wording above is quoted from the HDFC Bank and DBS Bank India reproductions, which match each other word for word.⁶⁷ From 1 October 2026 every exporter of services furnishes an Export Declaration Form (EDF) under regulation 3 of the FEMA (Export and Import of Goods and Services) Regulations, 2026, and RBI Circular No. 20 of 16 January 2026 superseded the SOFTEX circulars.²³ No change to the P0807 description had been found as of October 2026.⁶

When should you use the P0807 purpose code?

Use the P0807 purpose code when you develop software in India and deliver it to a client abroad, and your bank applies P0807 to that work.⁶³ DGFT's mapping links it to IT consulting and support, IT design and development, hosting, IT infrastructure and network management, other IT services and software downloads.⁴

• Off-site delivery: the work is done in India and shipped remotely.
• Bank practice: no RBI text found as of October 2026 says which of P0807 or P0802 banks should prefer after SOFTEX was superseded.³

DGFT's Version 1.0 mapping still labels P0807 "Softex IT" and maps the same IT SACs to P0802.⁴ See P0802 vs P0807 and SOFTEX replaced by EDF.

Who uses the P0807 purpose code?

The P0807 purpose code is used by Indian exporters of software who do the work in India and deliver it abroad.⁶

• IT services companies: run offshore development centres for foreign clients.
• Product studios: build and ship apps remotely.
• Freelance developers: deliver custom software modules.

Work that is not software, such as graphic design, digital marketing or management consulting, is not described by P0807 and has codes in group P10.⁶

What transactions are covered under P0807?

Transactions covered under P0807 are payments for software developed in India and delivered abroad.⁶

• Offshore centre: For example, an IT services company runs an offshore development centre for a US client.
• Mobile app: For example, a product studio in Pune builds a mobile app for a German startup and ships releases remotely.
• Custom module: For example, a freelance developer delivers a custom software module to a client in Australia.
• Downloadable software: For example, a developer sells software downloads to buyers abroad, which matches SAC 998434 in DGFT's mapping.⁴

Each example is software built in India and delivered to a client outside India.

When should you not use the P0807 purpose code?

Do not use the P0807 purpose code when the work is not software built in India and delivered abroad.⁶⁷

• Software consultancy your bank codes separately: use P0802 if your bank applies it.⁶
• Hardware consultancy: use P0801.⁶
• Maintaining existing software: use P0804.⁶
• Management consulting: use P1006, "Business and management consultancy and public relations services".⁶

If the contract mixes these, ask your bank which code it expects.

What documents are required for P0807?

No RBI document lists papers specific to P0807; your bank's own policy sets them. The FEMA (Export and Import of Goods and Services) Regulations, 2026 require each bank to have a policy and standard operating procedure listing documents, timelines and charges, published on its website.²

• Invoice: a service description and Services Accounting Code (SAC) that match the P0807 description. DGFT says you must choose the SAC that corresponds to the purpose code when you generate an electronic Bank Realisation Certificate (e-BRC).⁵
• Export Declaration Form (EDF): from 1 October 2026 every exporter of services gives an EDF to the specified authority, usually the AD bank, within 30 days from the end of the month of invoicing.²
• Bank record: the bank's credit advice or Foreign Inward Remittance Advice (FIRA) showing the code it reported.

DGFT's purpose code to SAC mapping (Version 1.0, 10 November 2023) lists these SACs against P0807:⁴

The mapping is many-to-many, so the same SAC can appear against several purpose codes.⁴

How do you declare the P0807 purpose code?

You declare the P0807 purpose code by telling your bank the purpose when the payment arrives, then using the matching SAC for the e-BRC.¹⁵

1. Match the work to the description: Compare what the client pays for with the RBI description of P0807, "Off-site Software Exports", and with the codes listed under related codes below.⁶
2. Put the matching SAC on the invoice: Use a SAC that DGFT's mapping lists against P0807, so the invoice can later be linked to the payment on the DGFT portal.⁴
3. Tell the bank or payer the code: Give P0807 to your bank, or to the platform or payer that asks for a purpose, before the money is credited.¹
4. Check the credit advice: Check that the bank's credit advice or FIRA shows P0807, and ask the bank to amend it straight away if it does not.⁵
5. Generate the e-BRC: On the DGFT portal, link the bank's inward remittance message (IRM) to your invoice and choose the SAC that corresponds to P0807.¹⁰⁵

Banks report the code they record, so the code on the bank's record is the one that counts.

How does the P0807 purpose code affect FIRA, GST and income tax?

The P0807 purpose code is a reporting code under RBI's FETERS reporting, and it decides which e-BRC category you can use.¹¹¹ DGFT's eBRC rules say only P0802, P0803, P0807 and P0103 apply under Services > IT.¹¹

• FIRA and e-BRC: the e-BRC is now self-generated by the exporter on the DGFT portal from the inward remittance message (IRM) data the bank sends, and DGFT says you choose the SAC that corresponds to the purpose code on the remittance.¹⁰⁵ Check that the bank's FIRA or credit advice shows P0807 before you use it as payment evidence.
• GST: a supply is an export of services only when all five conditions of section 2(6) of the IGST Act are met: supplier in India, recipient outside India, place of supply outside India, payment in convertible foreign exchange (or in rupees where RBI permits), and supplier and recipient not merely establishments of a distinct person.⁸ For a GST refund on exported services, rule 89(2)(c) of the CGST Rules asks for a statement of invoices with the relevant Bank Realisation Certificates or Foreign Inward Remittance Certificates.⁹
• Income tax: the Income-tax Act, 2025 has applied from 1 April 2026, and tax year 2026-27 runs from 1 April 2026 to 31 March 2027.¹² Income tax is worked out on the income under that Act. Section 58(2), Table row 3, which replaced section 44ADA, gives resident individuals and partnership firms (not LLPs) in specified professions, including information technology, a 50% deemed profit where gross receipts are up to ₹50 lakh, or ₹75 lakh if cash receipts are 5% or less.¹³

How GST and income tax apply depends on your contract and facts, so confirm with a chartered accountant.

What are the common mistakes with the P0807 purpose code?

The common mistakes with the P0807 purpose code involve the old SOFTEX link and non-software work.³⁶

• Assuming SOFTEX is still filed: from 1 October 2026 service exporters furnish an EDF, and the SOFTEX circulars were superseded.²³
• Using P0807 for non-software work: design, marketing and management consulting have codes in group P10.⁶
• Switching codes between invoices: use the same code for the same type of invoice so your e-BRCs line up.
• Invoice SAC outside the mapping: DGFT's rules say service exporters can only attach invoices whose SAC matches the services.¹¹

To fix a wrong code, ask the bank that credited the payment. DGFT's eBRC FAQs say exporters must contact the bank to request a purpose code change, and that banks can amend the IRM they report to DGFT.⁵ The full steps are in how to correct a purpose code after payment.

Which purpose codes are related to P0807?

The codes closest to P0807 are listed below with their official RBI descriptions.⁶⁷

To compare every receipt code, see the RBI purpose codes list for exporters, or shortlist codes with the purpose code finder. Where a payment could fit more than one description, confirm the code with your bank or a chartered accountant before the money is credited.