What is purpose code P1006?

Purpose code P1006 is the consultancy code in RBI's group P10, Other Business Services. It covers business and management consultancy and public relations.⁴⁵

It is one of the most common codes for Indian consultants billing foreign clients, but some consulting work has a more specific code elsewhere in the list.

What does the P1006 purpose code cover?

The P1006 purpose code covers business and management consultancy and public relations services paid for by foreign clients. RBI's receipt purpose code list describes P1006 as: "Business and management consultancy and public relations services".⁴⁵ DGFT's purpose code to SAC mapping reproduces the same wording.² P1006 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 P1006 purpose code?

Use the P1006 purpose code when a foreign client pays you for business or management consultancy, or for public relations.⁴ DGFT's mapping covers financial, strategic, human resources, marketing, operations and supply chain management consulting.²

• Management consulting: Strategy, financial, HR, operations or supply chain advice fits SAC 998311.²
• Business consulting and PR: Business consulting and public relations fit SAC 998312.²
• No more specific code: IT, tax, engineering and market research consulting each have their own code.⁴²

If more than one description could fit, confirm P1006 with your bank before the payment is credited.⁴

Who uses the P1006 purpose code?

P1006 fits Indian exporters paid for business or management consultancy, or for public relations.⁴ DGFT's mapping links it to "Management consulting and management services including financial, strategic, human resources, marketing, operations and supply chain management" (998311) and "Business consulting services including pubic relations services" (998312).²

• Strategy consultants: Advisers on market entry, growth or restructuring.
• HR consultants: Advisers on compensation, hiring or organisation design.
• Operations consultants: Advisers reviewing processes and supply chains.
• PR agencies: Agencies running media relations for foreign clients.

What transactions are covered under P1006?

Transactions covered under P1006 are consulting and PR fees from foreign clients.⁴² Each example below fits the description:

• Market entry: For example, a strategy consultant advises a European company on its India entry.
• Compensation design: For example, an HR consultant designs a compensation framework for a Gulf client.
• Process review: For example, an operations or supply chain consultant reviews a US manufacturer's processes.
• Media relations: For example, a PR agency runs media relations for a foreign startup.

Which SAC codes does DGFT map to the P1006 purpose code?

DGFT's purpose code to SAC mapping (Version 1.0, 10 November 2023) lists these Services Accounting Codes (SAC) against P1006:²

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 P1006 purpose code?

Do not use the P1006 purpose code when the consulting has a more specific code elsewhere in the list.⁴² Each case below names the code to compare:

• IT consulting: DGFT maps IT consulting to P0802 and P0807.²
• Tax consulting: Tax consulting is P1015.⁴
• Engineering advice: Engineering services are P1014.⁴
• Market research: Market research is P1016, and advertising campaigns are P1007.⁴ See purpose codes for consulting services.

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 P1006?

A payment under P1006 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 P1006 purpose code?

You declare the P1006 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 P1006 description: Compare what the foreign client pays for with the RBI description of P1006 and the neighbouring codes.⁴
2. Describe the service on the invoice: Describe the service on the export invoice in words that match the P1006 description, so the bank can see why the code fits.⁴
3. Give the bank the P1006 purpose code: Tell your bank that the purpose of the inward remittance is P1006 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 P1006, then generate the e-BRC on the DGFT portal and choose the SAC that corresponds to P1006.³

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 P1006 affect FIRA, GST and income tax?

The P1006 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 P1006 purpose code?

The common mistakes with the P1006 purpose code are choosing it for work another code describes, and leaving a wrong code uncorrected after the bank has reported it.⁴³

• Using P1006 for every kind of consulting: IT, tax, engineering and market research work each have a more specific code, so P1006 is not a catch-all for consultants.⁴²
• 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 P1006?

The purpose codes related to P1006 are the business services codes around it and the software consultancy code, 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.