S1009 Purpose Code: Architectural services

Purpose code S1009 is used when an Indian business pays a foreign service provider for architectural services.

What is the S1009 purpose code?

Purpose code S1009 is used when an Indian business sends money abroad to pay for architectural services. This covers work like concept and detailed design, master planning, technical drawings, design review and related architectural consulting delivered by an overseas firm. It applies to professional architectural services only, not to construction or civil works contracts that involve on-site execution, which generally fall under separate construction-related purpose codes. Under RBI FEMA guidelines, this outward payment is classified under other business services and reported accordingly.

When to use S1009 purpose code?

Use S1009 when you are paying an overseas architect or design consultancy for architectural services delivered to your business or project in India or abroad. It is the correct RBI purpose code for professional architectural work bought from a foreign firm, whether you are developing real estate, infrastructure or commercial spaces. S1009 covers the design and advisory service, not the construction work itself.

When to use a different code:

• Use the appropriate construction services code when the payment is for on-site building or civil works rather than design
• Use the appropriate engineering or technical consultancy code when the payment is mainly for non-architectural engineering advice
• Use the matching P code when you are receiving money rather than paying

Who typically uses S1009 purpose code?

Indian real estate developers, infrastructure companies, corporates and institutions that hire overseas architects or design studios for projects. It also applies to Indian EPC contractors, design-build firms and consultancies that subcontract architectural design work to foreign architectural practices.

Examples of transactions covered

• Fees to an overseas architectural firm for concept and schematic design of a new commercial complex in India
• Payment to a foreign architect for master planning and urban design of a township project
• Design fees to an international architecture studio for detailed drawings and specifications for a hotel project
• Retainer paid to a foreign consultancy for periodic architectural design review and value engineering on an infrastructure project

When NOT to use S1009 purpose code

• The payment is for on-site construction or civil works rather than architectural design (use the appropriate construction services code)
• The payment is for standalone engineering or technical consulting without architectural scope (use the appropriate engineering consultancy code)
• The payment is for purchasing project-related software, tools or other products instead of professional services (use the relevant software or product import code)
• You are receiving money rather than paying (use the matching P code)

Documents required

To send a payment under S1009, keep the following documents ready so your authorised dealer bank can verify the transaction and report it correctly under FEMA.

How is a S1009 Purpose Code declared?

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

1. Receive the vendor invoice: Your overseas architect or design consultancy bills you, clearly describing the architectural services and project details.
2. Determine taxability: Establish whether the payment is chargeable to tax in India, since that decides which part of Form 145 you file.
3. File Form 145: Submit the declaration before remitting, with Form 146 from your CA where the taxable amount exceeds ₹5 lakh in the Tax Year.
4. Complete Form A2: State the purpose of the outward remittance as S1009 and submit the supporting documents to your bank.
5. Get your MT103: Once the payment is sent, request the SWIFT MT103 as proof and retain your Form A2 record.
6. With a traditional bank you handle each step of the payment journey. But with a platform built for cross-border payments, you can preselect a default purpose code so the payments go out smooth.

Common mistakes to avoid

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

1. Mixing design with construction: Tagging a construction or civil works contract as architectural services when it should fall under a construction-related purpose code.
2. Code and invoice mismatch: Using S1009 when the vendor invoice describes unrelated services, which can flag the payment for review.
3. Assuming a Rule 220(3) exemption: Skipping Form 145 on a payment that is not on the specified exemption list, which carries a ₹1,00,000 penalty per instance.
4. Incomplete documents: Missing invoice, contract or Form A2, so the bank holds the remittance until provided.
5. Missing PAN or KYC: Incomplete verification stops the bank from releasing the payment.
6. Using an outward code for an inward receipt: Applying S1009 to money coming in instead of using the matching P code for receipts.

How Skydo helps with payments under S1009 Purpose Code

With a bank, you fill a fresh Form A2 and chase documents for every single vendor payment. With Skydo, your outward payments run on the same account you already collect into.

1. One account, both directions: Receive from international clients and pay overseas vendors from a single onboarded account, with one KYC.
2. Purpose code applied consistently: Set S1009 as your default for these payments so every remittance is tagged the same way.
3. Documentation in one place: Your invoices, Form A2 records and payment proofs stay together, ready for your CA and your AD bank.
4. A rate you can see: You get the live mid-market rate with a transparent fee, instead of a markup hidden inside the bank's rate.
5. Payments that go out on schedule: Your vendor gets paid without a branch visit or a week of back and forth.