What is purpose code P0901?

Purpose code P0901 is the first code in RBI's group P09, which covers charges for the use of intellectual property. Its description is two words: "Franchises services".⁴⁵ The code is for franchisors, so most freelancers and agencies, who are paid for work they perform, rarely need it.

What does the P0901 purpose code cover?

The P0901 purpose code covers receipts for franchise services, meaning fees from operators abroad for the use of an Indian franchise.⁴⁵ DGFT's purpose code to SAC mapping reproduces the same wording.²

• Official description: "Franchises services".⁴⁵
• BOP group: P09, "Charges for the use of intellectual property n.i.e".⁴
• 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.⁴⁵

When should you use the P0901 purpose code?

Use the P0901 purpose code when an overseas franchisee pays you for franchise services.⁴ DGFT's mapping links it to licensing SACs for software and databases, broadcasting rights, art works, manuscripts, R&D products, trademarks and franchises, natural resources and other intellectual property, and to SAC 998396, "Trademarks and franchises".²

• Franchise fees: the payment is for the right to use your brand or business model.
• Overseas operator: the payer runs the franchise outside India.

Service fees for work you perform for the franchisee use a service code.

Who uses the P0901 purpose code?

The P0901 purpose code is used by Indian businesses paid by overseas franchisees.⁴

• Restaurant brands: collect franchise fees from operators abroad.
• Education brands: franchise coaching or preschool models.
• Fitness chains: collect fees from franchisees abroad.

A designer, developer or consultant who builds something for a franchisee is paid for a service and uses a code in group P08 or P10.⁴

What transactions are covered under P0901?

Transactions covered under P0901 are franchise fees paid by overseas franchisees.⁴

• Restaurant franchise: For example, an Indian restaurant brand receives franchise fees from an operator in the UAE.
• Preschool franchise: For example, a coaching or preschool brand franchises its model to a partner in Nepal or the UK.
• Fitness franchise: For example, a fitness studio chain collects fees from franchisees abroad.
• Trademark use: For example, a franchisor charges for the use of its trademark, matching SAC 997336 in DGFT's mapping.²

Each example is a fee for using the franchisor's brand or model.

When should you not use the P0901 purpose code?

Do not use the P0901 purpose code when the payment is for licensing originals or for services.⁴⁵

• Licence fees for films, manuscripts, patents or copyrights: use P0902.⁴
• Consulting on setting up a franchise: use P1006, "Business and management consultancy and public relations services".⁴
• Advertising for a franchisee: use P1007, "Advertising, trade fair service".⁴
• Film or video production: use P1101.⁴

Each of these has its own description in the RBI list.

What documents are required for P0901?

No RBI document lists papers specific to P0901; 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.⁶

• Invoice: a service description and Services Accounting Code (SAC) that match the P0901 description. DGFT says you must choose the SAC that corresponds to the purpose code when you generate an electronic Bank Realisation Certificate (e-BRC).³
• 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.⁶
• 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 P0901:²

The mapping lists 2 more SAC codes against P0901; see the DGFT file for the full list.²

The mapping is many-to-many, so the same SAC can appear against several purpose codes.²

How do you declare the P0901 purpose code?

You declare the P0901 purpose code by telling your bank the purpose when the payment arrives, then using the matching SAC for the e-BRC.¹³

1. Match the work to the description: Compare what the client pays for with the RBI description of P0901, "Franchises services", and with the codes listed under related codes below.⁴
2. Put the matching SAC on the invoice: Use a SAC that DGFT's mapping lists against P0901, so the invoice can later be linked to the payment on the DGFT portal.²
3. Tell the bank or payer the code: Give P0901 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 P0901, and ask the bank to amend it straight away if it does not.³
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 P0901.⁹³

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

How does the P0901 purpose code affect FIRA, GST and income tax?

The P0901 purpose code is a reporting code under RBI's FETERS reporting, and its main practical effect is on the e-BRC you can generate.¹⁹

• 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.⁹³ Check that the bank's FIRA or credit advice shows P0901 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.⁷ 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.⁸
• 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 2027.¹⁰ Income tax is worked out on the income under that Act.

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 P0901 purpose code?

The common mistakes with the P0901 purpose code come from confusing franchising with licensing and services.⁴

• Using P0901 for licence fees on originals: P0902 covers licensing of originals, patents, copyrights and trademarks.⁴
• Using P0901 for consulting: consulting fees are a service, described by P1006.⁴
• Using P0901 for work done for a franchisee: design, software or marketing for a franchisee uses a P08 or P10 code.⁴
• Choosing an unmapped SAC: DGFT says you must choose the SAC that corresponds to the purpose code on the remittance.³

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.³ The full steps are in how to correct a purpose code after payment.

Which purpose codes are related to P0901?

P0901 has one neighbour in group P09 and several codes that are easy to confuse with it.⁴⁵

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.