15CA-15CB: Purpose Codes for Forex transactions

15CA-15CB: Purpose Codes for Forex transactions

Purpose code is a code issued by the Reserve Bank of India (RBI) to classify each transaction with the nature of foreign currency transactions. In other words, the Purpose code helps regulators identify the exact nature of a cross-border transaction. So, it is mandatory for any cross-border payments in India.

Bank and other payment processors must report each transaction with a purpose code.

Here are the purpose codes for payment purposes given in the tabular form for your reference, which are used for filing 15CA-15CB :

New Purpose Codes for Reporting Forex Transactions Payment Purposes

Group No.

Purpose Group Name

Purpose Code

Description

00

Capital Account

S0001

Indian investment abroad -in equity capital (shares)

 

 

S0002

Indian investment abroad -in debt securities

 

 

S0003

Indian investment abroad -in branches

 

 

S0004

Indian investment abroad -in subsidiaries and associates

 

 

S0005

Indian investment abroad -in real estate

 

 

S0006

Repatriation of Foreign Direct Investment in India- in equity shares

 

 

S0007

Repatriation of Foreign Direct Investment in India- in debt securities

 

 

S0008

Repatriation of Foreign Direct Investment in India- in real estate

 

 

S0009

Repatriation of Foreign Portfolio Investment in India- in equity shares

 

 

S0010

Repatriation of Foreign Portfolio Investment in India- in debt securities

 

 

S0011

Loans extended to Non-Residents.

 

 

S0012

Repayment of loans received from Non-Residents (Long & medium-term loans)

 

 

S0013

Repayment of short-term loans received from Non-Residents

 

 

S0014

Repatriation of Non-Resident Deposits (FCNRB/NRERA etc.)

 

 

S0015

Repayment of loans & overdrafts taken by ADs on their own account.

 

 

S0016

Sale of a foreign currency against another foreign currency

 

 

S0017

Purchase of intangible assets like patents, copyrights, trademarks, etc.

 

 

S0018

Other capital payments not included elsewhere

01

Imports

S0101

Advance payment against imports

 

 

S0102

Payment towards imports- settlement of invoice

 

 

S0103

Imports by diplomatic missions

 

 

S0104

Intermediary trade

 

 

S0190

Imports below Rs. 500,000- (For use by ECD offices)

02

Transportation

S0201

Payments for surplus freight/passenger fare by foreign shipping companies operating in India.

 

 

S0202

Payment for operating expenses of Indian shipping companies operating abroad.

 

 

S0203

Freight on imports – Shipping companies

 

 

S0204

Freight on exports – Shipping companies

 

 

S0205

Operational leasing (with crew) – Shipping companies

 

 

S0206

Booking of passages abroad – Shipping companies

 

 

S0207

Payments for surplus freight/passenger fare by foreign airline companies operating in India.

 

 

S0208

Operating expenses of Indian Airlines companies operating abroad

 

 

S0209

Freight on imports – Airlines companies

 

 

S0210

Freight on exports – Airlines companies

 

 

S0211

Operational leasing (with crew) – Airlines companies

 

 

S0212

Booking of passages abroad – Airlines companies

 

 

S0213

Payments on account of stevedoring, demurrage, port handling charges, etc.

03

Travel

S0301

Remittance towards Business travel.

 

 

S0302

Travel under basic travel quota (BTQ)

 

 

S0303

Travel for pilgrimage

 

 

S0304

Travel for medical treatment

 

 

S0305

Travel for education (including fees, hostel expenses, etc.)

 

 

S0306

Other travel (international credit cards)

04

Communication Service

S0401

Postal services

 

 

S0402

Courier services

 

 

S0403

Telecommunication services

 

 

S0404

Satellite services

05

Construction Service

S0501

Construction of projects abroad by Indian companies, including import of goods at the project site

 

 

S0502

Payments for the cost of construction etc., of projects executed by foreign companies in India.

06

Insurance Service

S0601

Payments for Life insurance premium

 

 

S0602

Freight insurance – relating to import & export of goods.

 

 

S0603

Other general insurance premium

 

 

S0604

Reinsurance premium

 

 

S0605

Auxiliary services (commission on insurance)

 

 

S0606

Settlement of claims

07

Financial Services

S0701

Financial intermediation except investment banking – Bank charges, collection charges, LC charges, cancellation of forward contracts, commission on financial leasing, etc.

 

 

S0702

Investment banking – brokerage, underwriting commission, etc.

 

 

S0703

Auxiliary services – charges on operation & regulatory fees, custodial services, depository services,   etc.

08

Computer & Information Services

S0801

Hardware consultancy

 

 

S0802

Software implementation (other than those covered in SOFTEX form)

 

 

S0803

Database, data processing charges

 

 

S0804

Repair and maintenance of computer and software

 

 

S0805

News agency services

 

 

S0806

Other information services- Subscription to newspapers, periodicals

09

Royalties & License Fees

S0901

Franchises services – patents, copyrights, trademarks, industrial processes, franchises, etc.

 

 

S0902

Payment for use, through licensing arrangements, of produced originals or prototypes (such as manuscripts and films)

10

Other Business Services

S1001

Merchanting services –net payments (from Sale & purchase of goods without crossing the border)

 

 

S1002

Trade-related services – commission on exports/imports

 

 

S1003

Operational leasing services (other than financial leasing) without operating crew, including charter hire

 

 

S1004

Legal services

 

 

S1005

Accounting, auditing, bookkeeping, and tax consulting services

 

 

S1006

Business and management consultancy and public relations services

 

 

S1007

Advertising, trade fair, market research, and public opinion polling service

 

 

S1008

Research & Development services

 

 

S1009

Architectural, engineering, and other technical services

 

 

S1010

Agricultural, mining, and on-site processing services – protection against insects & disease, increasing of harvest yields, forestry services, mining services like analysis of ores, etc.

 

 

S1011

Payments for maintenance of offices abroad

 

 

S1012

Other services not included elsewhere

11

Personal, Cultural & Recreational services

S1101

Audio-visual and related services – services and associated fees related to the production of motion pictures, rentals, fees received by actors, directors, producers, and fees for distribution rights.

 

 

S1102

Personal, cultural services such as those related to museums, libraries, archives, and sporting activities; fees for correspondence courses abroad.

12

Government not included elsewhere (G.n.i.e.)

S1201

Maintenance of Indian embassies abroad

 

 

S1202

Remittances by foreign embassies in India

13

Transfers

S1301

Remittance by non-residents towards family maintenance and savings

 

 

S1302

Remittance towards personal gifts and donations

 

 

S1303

Remittance towards donations to religious and charitable institutions abroad

 

 

S1304

Remittance towards grants and donations to other governments and charitable institutions established by the governments.

 

 

S1305

Contributions/donations by the Government to international institutions

 

 

S1306

Remittance towards payment/refund of taxes.

14

Income

S1401

Compensation of employees

 

 

S1402

Remittance towards interest on Non-Resident deposits (FCNRB/NRERA/ NRNRD /NRSR etc.)

 

 

S1403

Remittance towards interest on loans from Non-Residents (ST/MT/LT loans)

 

 

S1404

Remittance of interest on debt securities –debentures/bonds/FRNs etc.

 

 

S1405

Remittance towards interest payment by ADs on their own account (to VOSTRO a/c holders or the OD on NOSTRO a/c.)

 

 

S1406

Repatriation of profits

 

 

S1407

Payment/repatriation of dividends

15

Others

S1501

Refunds/rebates/reduction in invoice value on account of exports

 

 

S1502

Reversal of wrong entries, refunds of the amount remitted for non-exports

 

 

S1503

Payments by residents for international bidding

 

 

S1590

Outward remittances below Rs500,000- (for use by ECD regional offices)



Created & Posted by Pooja

Income Tax Expert at TAXAJ

 

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