What is purpose code P1008?

Purpose code P1008 is the research and development code in RBI's group P10, Other Business Services.⁴⁵

It covers paid research work for foreign clients across science, engineering and other fields. Engineering services and other technical services have their own codes, so the boundary matters.

What does the P1008 purpose code cover?

The P1008 purpose code covers research and development work paid for by foreign clients, across science, engineering and other fields. RBI's receipt purpose code list describes P1008 as: "Research & Development services".⁴⁵ DGFT's purpose code to SAC mapping reproduces the same wording.² P1008 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 P1008 purpose code?

Use the P1008 purpose code when a foreign client pays you for research and development, such as lab studies, prototype development or a commissioned study.⁴² DGFT's mapping shows the range of R&D work linked to it.²

• Experimental R&D: R&D in natural sciences, engineering and technology, medical sciences, agricultural sciences, social sciences and humanities is mapped to P1008.²
• Testing and scientific consulting: "Technical testing and analysis services" and "Scientific and technical consulting services" are mapped to P1008.²
• Design originals: DGFT also maps "Specialty design services" and "Design originals" to P1008.²

If more than one description could fit, confirm P1008 with your bank before the payment is credited.⁴

Who uses the P1008 purpose code?

P1008 fits Indian exporters paid for research and development.⁴ DGFT's mapping links it to R&D services in natural sciences, engineering and technology, medical sciences, agricultural sciences, social sciences and humanities, R&D originals, geological and surveying services, weather forecasting, "Technical testing and analysis services", "Scientific and technical consulting services", "Specialty design services" and "Design originals".²

• Contract research organisations: Firms running lab studies for foreign pharmaceutical companies.
• Engineering R&D centres: Teams developing prototypes for manufacturers abroad.
• Independent researchers: Social science or humanities researchers hired by foreign foundations.
• Product design firms: Firms developing new product concepts for overseas clients.

What transactions are covered under P1008?

Transactions covered under P1008 are fees for research, development, testing and related design work.⁴² Each example below fits the description:

• Lab studies: For example, a contract research organisation runs lab studies for a foreign pharmaceutical company.
• Prototype development: For example, an engineering R&D centre develops a prototype component for a European manufacturer.
• Commissioned study: For example, an independent social science researcher is hired by a foreign foundation for a study.
• Product concepts: For example, a product design firm develops new product concepts for an overseas client.

Which SAC codes does DGFT map to the P1008 purpose code?

DGFT's purpose code to SAC mapping (Version 1.0, 10 November 2023) lists these Services Accounting Codes (SAC) against P1008, among others where noted:²

The mapping lists 13 more SAC codes against P1008; see the DGFT file for the full list.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 P1008 purpose code?

Do not use the P1008 purpose code for engineering services, other technical services, market research or software development, which have their own codes.⁴ Each case below names the code to compare:

• Engineering services: Engineering services such as design for a building or plant are described by P1014.⁴
• Other technical services: Other technical services, including scientific and space services, are P1022.⁴
• Market research: Market research and public opinion polling have their own code, P1016.⁴
• Software development: Software development is in group P08.⁴

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 P1008?

A payment under P1008 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 P1008 purpose code?

You declare the P1008 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 P1008 description: Compare what the foreign client pays for with the RBI description of P1008 and the neighbouring codes.⁴
2. Describe the service on the invoice: Describe the service on the export invoice in words that match the P1008 description, so the bank can see why the code fits.⁴
3. Give the bank the P1008 purpose code: Tell your bank that the purpose of the inward remittance is P1008 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 P1008, then generate the e-BRC on the DGFT portal and choose the SAC that corresponds to P1008.³

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 P1008 affect FIRA, GST and income tax?

The P1008 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 P1008 purpose code?

The common mistakes with the P1008 purpose code are choosing it for work another code describes, and leaving a wrong code uncorrected after the bank has reported it.⁴³

• Treating market research as R&D: Market research is P1016 in RBI's list, even though the word research appears in both descriptions.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 P1008?

The purpose codes related to P1008 are the technical 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.