P0806 Purpose Code: Other information services - Subscription to newspapers, periodicals, etc.

Purpose code P0806 is used when an Indian business receives payment from abroad for subscriptions or other information services.

What is the P0806 purpose code?

Purpose code P0806 covers money received from abroad for providing access to information. Subscriptions to newspapers and periodicals is the example the description names, and the closing "etc" signals that publishing is the familiar case rather than the boundary of the code. What ties the category together is the arrangement: you hold or compile information, and an overseas customer pays for access to it. That is what separates it from the data codes elsewhere in the group, where you are paid to work on information belonging to someone else. Under RBI FEMA guidelines, this inward payment is classified under Telecommunication, Computer & Information Services and reported accordingly.

When to use P0806 purpose code?

Use P0806 when an overseas customer pays you for access to information you provide, whether by subscription, licence, or another arrangement. It is the correct RBI purpose code for publishing subscriptions and for the wider set of information services the description leaves room for. Because the named example is narrower than the category, confirm with your bank where your product is unusual rather than assuming it is excluded because it is not a newspaper.

When to use a different code:

• Use P0805 when the payment is for news agency services rather than subscriptions or other information services
• Use P0803 when the payment is for processing a client's own data rather than giving access to information you hold
• Use the matching S-code when you are paying a foreign vendor rather than receiving money

Who typically uses P0806 purpose code

Indian publishers, research houses and information businesses selling to overseas customers, including periodical publishers with international subscribers and firms providing research, analysis, or curated information on a recurring basis. It applies whether you invoice as an individual, a proprietorship, or a registered company.

Examples of transactions covered under P0806 purpose code

• Subscription revenue from overseas readers of a periodical published in India
• Recurring fees from a foreign client for access to research or market intelligence
• Licence fees received from an international customer for access to an information service
• Annual subscription paid from abroad for a curated information product

When NOT to use P0806 purpose code

• The payment is for news agency services, meaning supplying news content to an outlet that will publish it (use P0805)
• The payment is for processing or managing a client's own data rather than providing access to information you hold (use P0803)
• The payment is for software or systems work rather than information (use P0802 or P0804)
• You are paying a foreign vendor rather than receiving (use the matching S-code)

Documents required for P0806 purpose code

To receive a payment under P0806, keep the following documents ready so your bank or platform can verify the transaction and report it correctly under FEMA.

How is a P0806 Purpose Code declared?

Declaring the code is pretty straightforward. Here's how the payment gets tagged and reported.

1. Provide the access: Deliver the subscription or information service to the overseas customer for the period agreed.
2. Raise your invoice: Bill the customer for the subscription or service fees due.
3. Declare the purpose: State the purpose of the inward remittance, on your bank's form or through your platform.
4. Submit supporting documents: Provide the invoice, subscription agreement, and KYC so the bank can verify the transaction.
5. Get your FIRA: Once processed, your FIRA is issued as proof and the payment is reported under FEMA.
6. With a traditional bank you handle each step of your payment journey. But with a platform built for cross-border payments, you can preselect a default purpose code so that the payments land smooth.

Common mistakes to avoid while using P0806 purpose code

A few common slips can hold up your payment or cause compliance issues. Here's what to watch for.

1. Reading the example as the limit: Assuming P0806 covers only newspapers and periodicals, when the description heads the category as other information services and gives publishing as an example rather than a boundary.
2. Confusing access with processing: Using P0806 when you are paid to work on a client's own data, which is P0803. Here you hold the information and sell access; there the client owns it and you process it.
3. Code and invoice mismatch: The code not matching what your invoice describes, which flags the payment.
4. Incomplete documents: Missing the invoice or subscription agreement, so the bank cannot establish what was provided and holds funds until provided.
5. Missing PAN or KYC: Incomplete verification stops the bank from releasing the payment.
6. Using an inward code for an outward payment: Applying a receipt code to money you're sending out instead of the matching outward code.

How Skydo simplifies inward remittance under P0806 Purpose Code

With a bank, you declare the purpose code on your own for every single payment. With Skydo, you can preselect your code once and every payment gets tagged automatically.

1. Preselect the code once: Set P0806 as your default and Skydo tags every incoming payment for you, so there's no form to fill on each one.
2. No repeat declarations: A bank makes you restate the purpose for every remittance. Skydo does it in the background, the same way each time.
3. Instant, free FIRA: Your remittance proof is generated and stored on every payment, ready for your CA, GST, and audits, with no request and no fee.
4. Zero FX markup: You get the live mid-market rate with a flat, visible fee, instead of a markup hidden inside the bank's rate.
5. Settled in 24 hours: Your payment reaches your Indian bank within a day, fully reported and compliant.