What is purpose code P1004?

Purpose code P1004 is the legal services code in RBI's group P10, Other Business Services. The description is simply "Legal services".⁴⁵

It is the code to check when a foreign client pays for legal advice, representation or legal documentation work done from India.

What does the P1004 purpose code cover?

The P1004 purpose code covers payments from abroad for legal advice, representation and legal documentation work done from India. RBI's receipt purpose code list describes P1004 as: "Legal services".⁴⁵ DGFT's purpose code to SAC mapping reproduces the same wording.² P1004 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 P1004 purpose code?

Use the P1004 purpose code when a foreign client pays you for legal services, such as advice, representation, documentation or arbitration work.⁴² The description is short, so DGFT's SAC mapping is a useful guide to what it covers.²

• Legal advice or representation: DGFT maps legal advisory and representation SACs to P1004.²
• Legal documentation: Drafting, certification and patent or copyright documentation fall within the mapped SACs.²
• Arbitration and insolvency: Arbitration and conciliation, and insolvency and receivership services, are also mapped to P1004.²

If more than one description could fit, confirm P1004 with your bank before the payment is credited.⁴

Who uses the P1004 purpose code?

P1004 fits Indian exporters paid for legal services.⁴ DGFT's mapping links it to legal advisory and representation in criminal and other fields of law, legal documentation and certification for patents, copyrights and other documents, arbitration and conciliation, other legal services, and insolvency and receivership services.²

• Law firms: Firms advising foreign companies on Indian or cross-border matters.
• LPO firms: Legal process outsourcing firms doing contract review or documentation work for law firms abroad.
• Patent attorneys: Practitioners drafting and filing applications for overseas inventors.
• Arbitrators and counsel: Lawyers paid for international arbitration work.

What transactions are covered under P1004?

Transactions covered under P1004 are fees for legal advice, representation, documentation and dispute resolution.⁴² Each example below fits the description:

• Transaction advice: For example, an Indian law firm advises a foreign company on an acquisition in India.
• Contract review: For example, a legal process outsourcing firm reviews contracts for a US law firm.
• Patent filing: For example, a patent attorney drafts and files applications for an overseas inventor.
• Arbitration: For example, an arbitrator or counsel is paid for an international arbitration.

Which SAC codes does DGFT map to the P1004 purpose code?

DGFT's purpose code to SAC mapping (Version 1.0, 10 November 2023) lists these Services Accounting Codes (SAC) against P1004:²

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 P1004 purpose code?

Do not use the P1004 purpose code when the work is tax, accounting or general business advice, each of which has its own code.⁴ Each case below names the code to compare:

• Tax advice: Tax consulting is P1015, "Tax consulting services".⁴
• Accounting or audit: Accounting, auditing and bookkeeping work is P1005.⁴
• Business or compliance advice: A company secretary or compliance adviser should check whether the work is legal services or business consultancy (P1006) before choosing.⁴
• Work no code describes: Other 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 P1004?

A payment under P1004 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 P1004 purpose code?

You declare the P1004 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 P1004 description: Compare what the foreign client pays for with the RBI description of P1004 and the neighbouring codes.⁴
2. Describe the service on the invoice: Describe the service on the export invoice in words that match the P1004 description, so the bank can see why the code fits.⁴
3. Give the bank the P1004 purpose code: Tell your bank that the purpose of the inward remittance is P1004 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 P1004, then generate the e-BRC on the DGFT portal and choose the SAC that corresponds to P1004.³

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 P1004 affect FIRA, GST and income tax?

The P1004 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 P1004 purpose code?

The common mistakes with the P1004 purpose code are choosing it for work another code describes, and leaving a wrong code uncorrected after the bank has reported it.⁴³

• Using P1004 for tax work: Tax advice for a foreign client has its own code, P1015, even when a lawyer gives it.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 P1004?

The purpose codes related to P1004 are the professional services codes around it in group P10, listed below from RBI's list.⁴⁵

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.