Which purpose code should a software developer or IT company use for export receipts?
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Short answer
Software exports mainly use P0802, "Software consultancy/implementation (other than those covered in SOFTEX form)", and P0807, "Off-site Software Exports".1 P0803 covers data processing and P0804 repair and maintenance of computer and software.1 DGFT's e-BRC rules accept only P0802, P0803, P0807 and P0103 in "Services > IT".3 Licence fees fit P0902.12
| Applies to | Governed by | Deadline | Penalty | Last verified |
|---|---|---|---|---|
| Freelance developers, app studios, IT services and support firms, data-processing units1 | RBI Circular No. 84 purpose code list; DGFT eBRC rules and Purpose Code and SAC Code Mapping; FEMA (Export and Import of Goods and Services) Regulations, 20261235 | EDF within 30 days from the end of the month of invoicing5 | Not applicable | 28 October 2026 |
Software is the largest single category of Indian service exports, and the code on each receipt decides how your bank reports it to RBI and which e-BRC category it falls into on the Directorate General of Foreign Trade (DGFT) portal.13
This page is written for freelance developers, app studios, IT services companies, QA and testing firms, data-processing units and IT support providers. SaaS companies should also read purpose code for SaaS.
What is the purpose code for software export?
The purpose code for software export is usually P0802 or P0807, in group P08, "Telecommunication, Computer & Information Services", of Annex I to A.P. (DIR Series) Circular No. 84 dated 29 February 2012.1 Group P09 covers licensing of intellectual property, including software you own.1
| Code | Official description | Typical work | Best for |
|---|---|---|---|
| P0801 | Hardware consultancy/implementation | Hardware and IT infrastructure advice or set-up | Infrastructure consultants |
| P0802 | Software consultancy/implementation (other than those covered in SOFTEX form) | Custom development, implementation, IT consulting | Developers and IT services firms |
| P0803 | Data base, data processing charges | Data processing, database work, data entry | Data-processing units |
| P0804 | Repair and maintenance of computer and software | Software maintenance, IT support | IT support providers |
| P0807 | Off-site Software Exports | Software developed in India and delivered remotely | Developers, depending on the bank's practice |
| P0902 | Receipts for use, through licensing arrangements, of produced originals or prototypes (such as manuscripts and films), patents, copyrights, trademarks, industrial processes, franchises etc. | Licence fees for software or code you own | Software licensors |
The "Typical work" and "Best for" columns are our summary of the RBI descriptions and DGFT's SAC (Services Accounting Code) mapping.12
How does DGFT map IT service SAC codes to purpose codes?
DGFT's purpose code to SAC mapping links the main IT SAC codes to both P0802 and P0807, and some to P0801 as well.2
| SAC (DGFT description) | Purpose codes DGFT maps it to | Best for |
|---|---|---|
| 998313 Information technology (IT) consulting and support services | P0807, P0802 | IT consultants and support firms |
| 998314 Information technology (IT) design and development services | P0807, P0802 | Developers and app studios |
| 998315 Hosting and information technology (IT) infrastructure provisioning services | P0807, P0802, P0801 | Hosting providers |
| 998316 IT infrastructure and network management services | P0807, P0802, P0801 | Managed IT providers |
| 998319 Other information technology services n.e.c | P0807, P0802, P0801 | Other IT services |
| 998434 Software downloads | P0807, P0802 | Downloadable software sellers |
| 998415 Data transmission services | P0803 | Data-processing units |
| 997331 Licensing services for the right to use computer software and databases | P0901, P0902 | Software licensors |
How do you choose a purpose code for software work?
You choose a purpose code for software work from what the invoice and contract describe, then confirm with your bank.1
- Custom development or implementation: for example, a freelance developer building an app for an Australian client, or a Chennai firm implementing an ERP for a UK manufacturer, fits P0802 or P0807.12
- Ongoing maintenance or support: a support retainer may fit P0804 under RBI's wording, but DGFT's IT e-BRC category does not include P0804, while IT support services (SAC 998313) map to P0802 and P0807.123 Ask the bank which it applies.
- Data work: for example, a data-annotation or processing unit fits P0803.1
- Licence fees: for example, a developer licensing a plugin or library to a foreign company fits P0902.12
- Advance before work starts: an advance against a software contract can be received under P0103 and later clubbed with the service code in one e-BRC.3 See purpose code for advance payment.
Note: Contracts that mix software with consulting, design or marketing can point to different codes. The choice depends on the contract, so confirm with your bank.
Which purpose codes does DGFT accept for IT e-BRCs?
DGFT's eBRC rules say that for "Services > IT", only P0802, P0803, P0807 and P0103 are applicable.3
| Code | Accepted for "Services > IT"? | Note | Best for |
|---|---|---|---|
| P0802 | Yes | Software consultancy or implementation3 | Developers and IT firms |
| P0803 | Yes | Data processing3 | Data-processing units |
| P0807 | Yes | Off-site software exports3 | Developers |
| P0103 | Yes | Advance receipt code, can be clubbed with P08073 | Exporters receiving advances |
| P0801, P0804, P0902 | No | Certified under a different category, or amended first3 | Checking codes outside the IT list |
DGFT's FAQs add that an e-BRC for non-IT services cannot be generated against SOFTEX: the exporter must have the purpose code of the inward remittance message amended to the relevant services code first.4
What changed for software exporters on 1 October 2026?
From 1 October 2026, the Export Declaration Form (EDF) under the FEMA (Export and Import of Goods and Services) Regulations, 2026 (the 2026 Regulations) covers software exports, and RBI Circular No. 20 dated 16 January 2026 supersedes the earlier SOFTEX circulars from that date.56
- Software is a service: the 2026 Regulations say that "services" include "software".5
- EDF: every exporter of services gives an EDF to the specified authority, usually the authorised dealer (AD) bank, within 30 days from the end of the month of invoicing.5
- Purpose codes: RBI's purpose code list still describes P0802 as covering software "other than those covered in SOFTEX form".1
As of October 2026 we found no RBI or DGFT document re-mapping P0802 and P0807 after SOFTEX ended, so ask your bank which it now applies.12 See P0802 vs P0807 and SOFTEX replaced by EDF.
What happens if a software export receipt carries the wrong purpose code?
If a software export receipt carries the wrong purpose code, the receipt may fall outside DGFT's IT category until the bank amends it.34
- Amendment: DGFT's FAQs say exporters must contact the bank to request purpose code changes.4
- Steps: see how to correct a purpose code after payment.
What are the common mistakes with purpose codes for software export?
The common mistakes with purpose codes for software export come from using a code outside DGFT's IT list or a non-software code on software work.13
- Consulting code on development: a developer paid under P1006 is outside "Services > IT".3
- P0804 for support without checking: P0804 is outside the IT e-BRC list.3
- P0902 for services: P0902 describes licence fees for rights you own.1
- Assuming P0802 and P0807 are fixed: ask your bank which it applies after SOFTEX ended.16
How did we verify this?
We checked this page against the sources below on 30 October 2026. Read our methodology or report an error.
- [1]RBI: Annex I to A.P. (DIR Series) Circular No. 84 dated 29 February 2012, Purpose Codes for Reporting under FETERS, Part B (receipt purposes)
- [2]DGFT: Purpose Code and SAC Code Mapping, Version 1.0, 10 November 2023
- [3]DGFT: eBRC generation rules, General Guidelines for Generating eBRC (last updated 26 March 2024)
- [4]DGFT: FAQs (Self-Generation of eBRC), Version 1.0, March 2024, questions 25 and 84
- [5]RBI: Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026, amended up to 22 September 2026, regulations 2, 3 and 4
- [6]RBI: A.P. (DIR Series) Circular No. 20 dated 16 January 2026, Export and Import of Goods and Services
Frequently asked questions
What is the purpose code for app development for a foreign client?+
App development billed to a foreign client is software implementation, so it fits P0802 or P0807 in RBI's receipt list.1 DGFT maps IT design and development services (SAC 998314) to both codes.2 Ask your bank which of the two it applies, because the RBI wording of P0802 still refers to the SOFTEX form.
What purpose code fits IT support or software maintenance retainers?+
RBI's list has P0804, "Repair and maintenance of computer and software", for software maintenance.1 DGFT maps IT consulting and support services (SAC 998313) to P0802 and P0807, and its "Services > IT" e-BRC category does not include P0804.23 Ask your bank which code it prefers for a support retainer.
Can a developer use P0902 for selling a software licence?+
P0902 covers receipts for use, through licensing arrangements, of produced originals, copyrights and similar rights, and DGFT maps software licensing (SAC 997331) to P0902.12 A developer licensing a plugin or library can use P0902, but P0902 falls outside DGFT's "Services > IT" e-BRC category, so the e-BRC sits under another category.3
Which DGFT SAC codes map to both P0802 and P0807?+
DGFT maps SAC 998313 (IT consulting and support), 998314 (IT design and development), 998315 (hosting and IT infrastructure provisioning), 998316 (IT infrastructure and network management), 998319 (other IT services) and 998434 (software downloads) to both P0802 and P0807.2 DGFT maps 998315, 998316 and 998319 to P0801 as well.
Can an e-BRC be generated for non-IT services exported under SOFTEX?+
DGFT's FAQs say an e-BRC for non-IT services cannot be generated against SOFTEX.4 The exporter must first have the purpose code of the inward remittance message amended to the relevant services code through the bank, and then generate the e-BRC under the matching services category on the DGFT portal.
Do the 2026 FEMA Regulations treat software as a service?+
The FEMA (Export and Import of Goods and Services) Regulations, 2026 say that "services" include "software".5 Every exporter of services, software exporters included, gives an Export Declaration Form to the specified authority, usually the authorised dealer bank, within 30 days from the end of the month of invoicing.5
This page is general information for Indian service exporters, not tax or legal advice. Rules change and outcomes depend on your facts, so confirm with a chartered accountant before acting.
Keep reading
What is the difference between purpose codes P0802 and P0807?
P0802 is software consultancy or implementation outside SOFTEX; P0807 is off-site software exports. How DGFT treats each and what changed when SOFTEX ended.
Purpose codesWhich purpose code should a SaaS company use for foreign subscription revenue?
Which RBI purpose code fits SaaS subscription income: P0802 or P0807 for software services, P0902 for licences, P0803 for data processing. How Indian SaaS firms choose.
ProfessionHow should a software developer in India receive payments from foreign clients?
How Indian software developers get paid by foreign clients: export of services test, purpose codes P0802 and P0807, fee types, GST LUT and section 58 tax.
RBI and FEMAHow did the EDF replace SOFTEX, and what happens to older SOFTEX forms?
How the EDF replaced SOFTEX on 1 October 2026, which RBI instruments did it, and what the rules say about SOFTEX forms and invoices from before that date.
Purpose codesWhat are the RBI purpose codes for receiving export of services payments?
Every RBI receipt purpose code in groups P02 to P16 with its exact description from Circular No. 84, and which kinds of Indian service exporters use each group.