Foreign remittance code

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

26 January 2017 I am working as Software Consultant to foreign clients. I receive Forex remittances for two purposes:
1) Consultancy Fee
2) Reimbursement for out of pocket expenses
Question is What should be the Purpose Code for transaction of type (2) ?

Querist : Anonymous

Querist : Anonymous (Querist)

30 January 2017 Experts your opinion on above query ?

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
Follow

25 July 2024 For receiving Forex remittances for reimbursement of out-of-pocket expenses as a Software Consultant to foreign clients, you should use the appropriate Purpose Code designated by the Reserve Bank of India (RBI). Purpose Codes are used to specify the nature of the transaction for regulatory and statistical purposes. Here’s the relevant Purpose Code for reimbursement of expenses:

**Purpose Code: P0802 - Reimbursement of pre-incorporation expenses**

This Purpose Code is specifically used for receiving remittances from abroad to reimburse pre-incorporation expenses. Since your scenario involves reimbursement of out-of-pocket expenses related to consultancy services, this Purpose Code aligns with the nature of your transaction.

### How to Use the Purpose Code:

1. **Mention on Remittance Form:** When your foreign client initiates the remittance, they should specify Purpose Code P0802 on the remittance form.

2. **Documentation:** Maintain proper documentation to substantiate the nature of the expenses being reimbursed. This could include invoices, receipts, and any correspondence showing the nature of the expenses.

3. **Compliance:** Ensure compliance with RBI guidelines and any reporting requirements related to foreign remittances. Keep records of all transactions for audit and regulatory purposes.

By using the correct Purpose Code, you ensure that the remittance is classified accurately according to RBI regulations. This helps in maintaining transparency and compliance with foreign exchange regulations in India. If you have further questions or need additional assistance, consulting with a chartered accountant or a financial advisor familiar with RBI regulations would be beneficial.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

JACOB ABRAHAM KURIALANICKAL

nitin

Manoj Sharma

T.N.Reddy

sathish kumar k

Subscribe Now

Foreign remittance code

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

CA Final

Senior execiutive

Manager- Finance and Compliance

Article Assistant

Accountant

GST CONSULTANT

GST CONSULTANCY