What is purpose code P1002?

Purpose code P1002 is the first code in RBI's group P10, Other Business Services. It covers commission earned on exports or imports, so it sits close to trade in goods even though it is a services code.⁴⁵

This page explains who receives commission under P1002, and how it differs from P1019, the code for commission agent services.⁴

What does the P1002 purpose code cover?

The P1002 purpose code covers commission earned on exports or imports, which places it close to trade in goods even though it is a services code. RBI's receipt purpose code list describes P1002 as: "Trade related services - commission on exports / imports".⁴⁵ DGFT's purpose code to SAC mapping reproduces the same wording.² P1002 sits in group P10, "Other Business Services".⁴

The list comes from A.P. (DIR Series) Circular No. 84 dated 29 February 2012, which 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 P1002 purpose code?

Use the P1002 purpose code when a foreign buyer or seller pays you commission on an export or import deal in goods.⁴ The commission must be tied to the trade itself.⁴

• The payment is commission: You are paid a share or fee for bringing about an export or import order.⁴
• The trade is in goods: The commission relates to goods moving between India and another country, as the P1002 description names exports and imports.⁴
• A foreign party pays you: The buyer, seller or principal paying the commission is outside India.⁴

If more than one description could fit, confirm P1002 with your bank before the payment is credited.⁴

Who uses the P1002 purpose code?

P1002 fits Indian agents paid commission on export or import deals.⁴ DGFT's mapping links it to "Services provided for a fee/commission or contract basis on wholesale trade" (996111), the same for retail trade (996211), "Customs House Agent services" (996712) and, in Version 1.0, camp site and recreational camp SACs.²

• Sourcing agents: Agents who place foreign buyers' orders with Indian factories and earn commission on them.
• Indenting agents: Agents who book orders for a foreign maker with Indian importers.
• Buying houses: Firms that earn commission on shipments to foreign retailers.
• Customs house agents: Agents whose work DGFT maps to SAC 996712, which also appears against P1019.²

What transactions are covered under P1002?

Transactions covered under P1002 are commission payments linked to exports or imports of goods.⁴ Each example below fits the description:

• Apparel sourcing: For example, a sourcing agent in Tiruppur is paid commission by a European clothing brand on orders placed with Indian factories.
• Machinery indent: For example, an indenting agent is paid by a foreign machinery maker for orders booked with Indian importers.
• Handicraft buying house: For example, a buying house earns commission on handicraft shipments to a US retailer.
• Food exports: For example, an agent earns commission from an overseas importer on each container of Indian spices it arranges.

Which SAC codes does DGFT map to the P1002 purpose code?

DGFT's purpose code to SAC mapping (Version 1.0, 10 November 2023) lists these Services Accounting Codes (SAC) against P1002:²

When you generate an electronic Bank Realisation Certificate (e-BRC) on the DGFT portal, DGFT says you must choose the SAC that corresponds to the purpose code on the remittance.³ The mapping is many-to-many, so the same SAC can appear against several purpose codes.²

When should you not use the P1002 purpose code?

Do not use the P1002 purpose code when the payment is a fee for advice or when the commission is not tied to trade in goods.⁴ Each case below names the code to compare:

• Fixed consulting fee: A consultant paid a fixed fee for market-entry advice is not earning trade commission, and would compare P1006.⁴
• Commission not tied to goods: General commission agent services are P1019, "Commission agent services".⁴
• Trading on your own account: Wholesale and retailing trade services are P1020.⁴
• Work with no specific code: Services not included elsewhere are P1099.⁴

Where a payment sits on the line between two codes, the contract and invoice usually show which service the client is paying for, so keep them ready for the bank.

What documents are required for P1002?

A payment under P1002 needs the documents any export of services needs: an invoice, the Export Declaration Form (EDF), and the bank's inward remittance record that the e-BRC is generated from.⁶³ Under regulation 3(2) of the Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026 (the 2026 Regulations), an exporter of services files the EDF with the specified authority within 30 days from the end of the month in which the invoice was raised.⁶

For software, the specified authority can also be Software Technology Parks of India (STPI), and in a Special Economic Zone it is the Development Commissioner.⁶ Exporters of services other than software may file the EDF on or before the date payment is received instead.⁶

How do you declare the P1002 purpose code?

You declare the P1002 purpose code by telling your bank the purpose of the inward remittance, then making sure the same code carries through to the EDF and the e-BRC.³⁶ The steps below follow that order.

1. Match the work to the P1002 description: Compare what the foreign client pays for with the RBI description of P1002 and the neighbouring codes.⁴
2. Describe the service on the invoice: Describe the service on the export invoice in words that match the P1002 description, so the bank can see why the code fits.⁴
3. Give the bank the P1002 purpose code: Tell your bank that the purpose of the inward remittance is P1002 when the payment arrives, using the bank's own inward remittance process.³
4. File the Export Declaration Form: File the EDF with the specified authority within 30 days from the end of the month in which the invoice was raised, or for non-software services on or before the date payment is received.⁶
5. Check the IRM and generate the e-BRC: Check that the bank's inward remittance message shows P1002, then generate the e-BRC on the DGFT portal and choose the SAC that corresponds to P1002.³

DGFT's eBRC FAQs place e-BRC generation under Services, then eBRC, then Generating eBRC, after you register on the DGFT website and link your Importer Exporter Code (IEC).³

How does P1002 affect FIRA, GST and income tax?

The P1002 purpose code states the purpose of the payment on the bank's record; GST, realisation and income tax follow their own rules.³ The code matters most where the e-BRC and the SAC you choose must line up with it.³

• FIRA: Ask your bank for its inward remittance advice, often called a Foreign Inward Remittance Advice (FIRA), and check that it shows the same purpose code before you rely on it for GST or bank records.
• e-BRC: DGFT describes the e-BRC as its confirmation that the exporter has received payment for the export of goods or services, and says the SAC you choose must correspond to the purpose code.³
• GST: A supply is an export of services under section 2(6) of the IGST Act, 2017 when the supplier is in India, the recipient is outside India, the place of supply is outside India, payment is received in convertible foreign exchange (or in Indian rupees where RBI permits), and the two are not merely establishments of a distinct person.⁷ Export of services is a zero rated supply, and a registered person can supply under bond or Letter of Undertaking without paying integrated tax.⁸
• Realisation: Regulation 5(1) of the 2026 Regulations requires the value of exported services to be realised within nine months from the date of invoice, or twelve months where the export is invoiced or settled in Indian rupees.⁶
• Income tax: The sources on this page do not cover income tax, and how a receipt is taxed depends on your facts, so confirm it with a chartered accountant.

For the GST side in more depth, see purpose codes and GST on export of services.

What are the common mistakes with the P1002 purpose code?

The common mistakes with the P1002 purpose code are choosing it for work another code describes, and leaving a wrong code uncorrected after the bank has reported it.⁴³

• Mixing up P1002 and P1019: P1002 is commission on exports or imports, while P1019 is commission agent services; the RBI list does not define the boundary further, so ask your bank when a commission is not tied to a trade in goods.⁴
• Leaving a wrong code in place: DGFT's eBRC FAQs say exporters must contact the bank to request a purpose code change, and that banks can amend the inward remittance message (IRM) they report to DGFT.³ Send the bank the remittance reference, the code used, the code you need and your invoice.
• Choosing a SAC that does not match: DGFT says exporters must choose the SAC that corresponds to the purpose code when generating an e-BRC.³

The full steps are in how to correct a purpose code after payment, and the effects are covered in what happens if you use the wrong purpose code.

Which purpose codes are related to P1002?

The purpose codes related to P1002 are the other commission and trade codes in group P10, listed below from RBI's list.⁴⁵ P1002 is one of two commission codes in the group; the other is P1019.⁴

To compare every receipt code, see the RBI purpose codes list for exporters, or shortlist codes for your work 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.