S0805 Purpose Code: News agency services

Purpose code S0805 is used when an Indian business pays a foreign news agency for news-related services.

What is the S0805 purpose code?

Purpose code S0805 is used when an Indian business sends money abroad to pay for news agency services. This covers services like international news feeds, syndicated articles, photographs, video footage, and other news content supplied by an overseas news agency. It applies to the news service itself, not to unrelated media or advertising services, which are reported under different RBI purpose codes. Under RBI FEMA guidelines, this outward payment is classified under telecommunication, computer and information services and reported accordingly.

When to use S0805 purpose code?

Use S0805 when you are paying an overseas news agency for news feeds, syndicated stories, photographs, video content, or other news services delivered for use in India. It is the correct RBI purpose code for cross-border news agency arrangements, whether you are a media house, digital platform or corporate communications team. S0805 covers the news service relationship, including subscriptions, licensing and usage fees.

When to use a different code:

• Use a more specific advertising or marketing services code when the payment is for international advertising campaigns rather than news content
• Use the broadcasting or content distribution services code when the payment is for foreign TV or streaming distribution services instead of news gathering
• Use the matching P code when you are receiving money rather than paying

Who typically uses S0805 purpose code?

Indian newspapers, TV channels, digital media platforms and news portals that buy international news feeds, photos, videos or syndicated content from overseas news agencies. It also applies to corporates, research firms and agencies that subscribe to foreign news services for internal use, as long as the service provider is outside India.

Examples of transactions covered

• Subscription payment to an overseas news agency for an international news wire feed used by your editorial team in India
• Annual licence fees to a foreign agency for the right to publish their syndicated articles and op-eds in your Indian publication
• Payment to an international photo agency for a package of news photographs covering a global event
• Content fee to a foreign video news agency for using their news clips in your Indian TV or digital news broadcasts

When NOT to use S0805 purpose code

• The payment is for international advertising or marketing services rather than news agency work (use the relevant advertising or marketing services purpose code)
• The payment is for database access, data processing or analytics platforms instead of news content (use the appropriate data or information services purpose code)
• The payment is for importing physical media products or equipment rather than a news service (use the relevant goods import purpose code)
• You are receiving money rather than paying (use the matching P code)

Documents required

To send a payment under S0805, keep the following documents ready so your authorised dealer bank can verify the transaction and report it correctly under FEMA.

How is a S0805 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 news agency bills you, clearly describing the news feeds, content licences or other services supplied.
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 S0805 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. Confusing news services with advertising or other media: Tagging general advertising, PR or marketing spends as news agency services when they belong under different purpose codes.
2. Code and invoice mismatch: Using S0805 when the vendor invoice describes a different type of service, which can flag the payment at your bank.
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 S0805 to money coming in instead of using the matching P code for receipts.

How Skydo helps with payments under S0805 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 S0805 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.