What is Purpose Code P1006?
P1006 is one of the broadest professional services codes, covering inward remittances received for business and management consultancy, strategic advisory, organisational consulting, and public relations services provided to foreign clients. This includes management consulting (strategy, operations, organisational design), HR and talent consulting, corporate communications, and general business advisory services.
India has a large management consulting industry — from the India offices of global firms (McKinsey, BCG, Bain, Deloitte, KPMG) to domestic boutique advisory firms. When these firms serve foreign clients and receive fees from abroad, P1006 is the standard code. It is also the home for independent Indian management consultants and advisors serving foreign corporates.
See all RBI purpose codes
When to Use P1006
Use P1006 when you receive foreign currency for management consultancy, business advisory, or PR services. Common scenarios:
-
- An Indian management consulting firm receiving project fees from a foreign corporate for a strategy or operations consulting engagement
-
- An Indian HR consultant receiving fees from a foreign company for leadership assessment, talent management, or organisational design work
-
- An Indian PR firm receiving retainer fees from a foreign client for managing their communications and media relations in India or globally
-
- An independent Indian business advisor receiving advisory fees from a foreign company for market entry strategy or business development consulting in India
-
- An Indian corporate communications firm receiving fees from a foreign company for crisis communications, investor relations, or stakeholder management
Quick check: Payment for strategic business advice, management consulting, or PR services? Use P1006. For legal services, use P1004. For accounting and audit, use P1005. For market research specifically, use P1007.
Wrong Code? Use These Instead
| If your money is from… | Correct code to use |
|---|---|
| Legal services | P1004 |
| Accounting, auditing, and bookkeeping | P1005 |
| Advertising, market research, trade fair services | P1007 |
| Research and development services | P1008 |
| Architectural or engineering technical services | P1009 |
Documents to Keep Ready
| Document | Why you need it |
|---|---|
| Consulting engagement letter / contract | Confirms the consulting mandate, scope, and fee arrangement with the foreign client |
| Consulting invoice / statement of work billing | Records the fees charged for consulting services rendered in the period |
| Deliverable evidence | Consulting report, strategy document, PR coverage, or other work product |
| SWIFT / wire transfer confirmation | Confirms the inward remittance from the foreign client |
| e-FIRA | Official proof of inward remittance tagged P1006 |
| KYC documents | Standard requirement for the Indian consulting firm or individual consultant |
What is an e-FIRA — and Why Does It Matter?
An e-FIRA (Electronic Foreign Inward Remittance Advice) is the official proof that foreign money entered India. It confirms the nature and purpose of the inflow, which matters for tax treatment, FEMA compliance, and audit trails.
Your bank generates it automatically once the funds land. You can usually download it from your internet banking portal or request it at your Forex desk. The e-FIRA will reflect the correct purpose code, which your CA or accounts team will reference during filings.
Did you know? Some banks take days to issue an e-FIRA. With Remit Circle, you can download yours instantly — at no charge — the moment your payment is credited. → Get your free e-FIRA via Remit Circle
Receive Inward Remittances Compliantly with Remit Circle
Getting the purpose code right on an inward remittance isn’t just a formality — a mismatch can cause payment holds, RBI queries, or incorrect tax treatment. Remit Circle is built to handle this for you.
Instant e-FIRA — Download your Foreign Inward Remittance Advice the moment funds are credited. No waiting on the bank, no Forex desk visits. Free.
Correct purpose code, every time — Remit Circle flags the right code for your transaction type before the payment is processed, so there are no mismatch holds at the bank.
Multi-currency support — Receive in USD, EUR, GBP, AUD and more. Funds settle directly into your Indian bank account at competitive rates.
Compliance-ready records — Every transaction comes with a clean audit trail — purpose code, amount, date, counterparty — so you and your CA are always on the same page.
Start receiving international payments with Remit Circle
Open a free account in minutes. No minimum balance, no hidden fees. Get your e-FIRA instantly on every inward remittance.
Open your free Remit Circle account →
Frequently Asked Questions
Q: What is RBI purpose code P1006?
P1006 is used when an Indian management consultant, strategy advisor, or PR firm receives fees from a foreign client for business consultancy, management advisory, or public relations services. It covers strategic business advice as distinct from legal (P1004), accounting (P1005), or market research (P1007) services.
Q: What types of consulting services fall under P1006?
P1006 covers strategy consulting (market entry, competitive strategy, growth strategy), operations consulting (process improvement, supply chain, lean operations), HR and organisational consulting (talent management, culture, leadership), corporate communications and PR (media relations, crisis communications, investor relations), and general business advisory that doesn’t fit a more specific code.
Q: Can independent Indian management consultants serving foreign clients use P1006?
Yes. Individual management consultants who provide strategic advice to foreign companies and receive payment from abroad use P1006. Maintain your engagement letter, invoice, and e-FIRA. Income tax as a professional and GST registration (if turnover crosses the threshold) apply.
Q: Is there a distinction between P1006 and P1007 for market research?
Yes. P1007 specifically covers advertising, trade fair participation, market research, and opinion polling — gathering and analysing data about markets or consumers. P1006 covers business and management consultancy — strategic advice that may use research data but goes beyond data gathering to provide actionable business guidance. A market research report is P1007; a market entry strategy recommendation is P1006.
Q: Are consulting fees received under P1006 zero-rated for GST?
Management consulting and PR services provided to foreign clients where the recipient is outside India and payment is in foreign currency generally qualify as export of services — zero-rated under GST. If the consulting is provided to a foreign company’s Indian presence, the place of supply may be India and standard GST rates apply. Confirm with your CA.
Q: How does P1006 apply to Indian offices of global consulting firms (McKinsey India, BCG India)?
Indian entities of global consulting firms that serve foreign clients — providing consulting services billed to and paid by the foreign affiliate or foreign client — receive those inward fee payments under P1006. Transfer pricing and inter-company billing arrangements are important compliance considerations for these entities.
