What is Purpose Code P1007?
P1007 covers inward remittances received for two specific types of services: (1) advertising services — creating, producing, and placing advertisements for foreign clients across any media (print, digital, TV, outdoor); and (2) trade fair and exhibition services — organising, managing, or facilitating participation in trade fairs and business exhibitions for foreign clients.
Important: P1007 covers advertising and trade fairs only. Market research and public opinion polling, which are often bundled with advertising in common usage, have their own separate official code — P1016. If you are receiving payment for market research or consumer surveys, use P1016, not P1007. This is one of the most common misclassifications in the business services group.
See all RBI purpose codes
When to Use P1007
Use P1006 when you receive foreign currency for management consultancy, business advisory, or PR services. Common scenarios:
-
- An Indian advertising agency receiving fees from a foreign brand for creating and running advertising campaigns — TV commercials, digital ads, print campaigns, outdoor advertising
-
- An Indian digital marketing agency receiving retainer fees from a foreign client for SEO, social media management, content marketing, and paid advertising management
-
- An Indian trade fair organiser receiving fees from a foreign company for managing their participation at an Indian trade exhibition — stall design, logistics, networking
-
- An Indian events company receiving payment from a foreign client for organising a product launch, brand activation, or trade show presence in India
-
- An Indian media buying company receiving fees from a foreign brand for planning and executing media placements across Indian channels and platforms
Quick check: Is the payment specifically for advertising (creating/placing ads) or trade fair/exhibition services? Use P1007. For market research, consumer surveys, and public opinion polling, use P1016 — that is a separate code. For business strategy consultancy, use P1006.
Wrong Code? Use These Instead
| If your money is from… | Correct code to use |
|---|---|
| Market research, consumer surveys, public opinion polling | P1016 |
| Business and management consultancy (strategic advice) | P1006 |
| Publishing and printing services | P1017 |
| News agency services | P0805 |
| Information subscriptions / research databases | P0806 |
Documents to Keep Ready
| Document | Why you need it |
|---|---|
| Agency agreement / project contract | Confirms the advertising or trade fair service mandate and fee structure |
| Campaign brief / event brief | Documents the scope of advertising or exhibition work agreed with the foreign client |
| Invoice / billing statement | Records the fees charged for the advertising or trade fair services |
| Ad creatives / event completion report | Evidence of the advertising or exhibition work delivered to the foreign client |
| e-FIRA | Official proof of inward remittance tagged P1007 |
| KYC documents | Standard requirement for the Indian advertising or events firm |
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 P1007?
P1007 is used when an Indian entity receives payment from a foreign client for advertising services (creating, producing, and placing advertisements) or trade fair and exhibition services (managing trade event participation). Note that market research and public opinion polling are NOT covered by P1007 — those belong to P1016.
Q: Why is market research not covered by P1007 — isn’t it part of advertising?
In the official RBI FETERS classification, market research and public opinion polling have their own dedicated code — P1016. While market research and advertising are commercially linked (advertisers commission research), the RBI follows the IMF’s BPM6 framework which classifies them separately. Many unofficial purpose code lists and some older bank systems bundle them together under P1007, but the correct official approach is: advertising/trade fairs = P1007; market research/polling = P1016.
Q: Does P1007 cover digital marketing services — SEO, social media, paid ads?
Yes. Digital advertising services — search engine advertising, social media advertising, content marketing, influencer marketing, and programmatic advertising — are advertising services and fall under P1007. The medium (digital vs. traditional) does not change the purpose code. What matters is that the service is about creating and placing advertisements or managing advertising campaigns.
Q: What trade fair services specifically fall under P1007?
Trade fair and exhibition services covered by P1007 include: stall/booth design and construction, exhibition logistics, on-site management, visitor engagement activities, product demonstrations, trade show registration and coordination, and post-show reporting — all done on behalf of a foreign client participating in a trade fair (in India or internationally).
Q: Can an Indian company receive both P1007 (advertising) and P1016 (market research) from the same foreign client?
Yes. If a foreign brand commissions both an advertising campaign (P1007) and market research to evaluate that campaign’s effectiveness (P1016), the Indian agency would receive separate payments or split a combined payment between the two purpose codes. Each service should ideally be separately invoiced to facilitate correct coding.
Q: Are advertising and trade fair service fees from foreign clients zero-rated for GST?
Advertising and trade fair services provided to foreign clients where the recipient is outside India and payment is in foreign currency generally qualify as export of services under GST — zero-rated. However, if the advertising is for the Indian market (benefiting Indian consumers of a foreign brand), the place-of-supply analysis may make the service taxable in India. Your CA should confirm based on the specific campaign and client structure.
