S1016 Purpose Code: Market research and public opinion polling service

Purpose code S1016 is used when an Indian business pays a foreign vendor for market research and public opinion polling services.

What is the S1016 purpose code?

Purpose code S1016 is used when an Indian business sends money abroad to pay for market research or public opinion polling services. This covers work like consumer or B2B surveys run overseas, brand or product perception studies in foreign markets, audience measurement, and public opinion polls commissioned from agencies outside India. It applies to the research and insight service, not to any separate purchase of physical reports or data sets that might fall under a different code. Under RBI FEMA guidelines, this outward payment is classified under other business services and reported accordingly.

When to use S1016 purpose code?

Use S1016 when you are paying an overseas vendor for market research, customer insight studies or public opinion polling delivered to support your business decisions in India. It is the correct RBI purpose code for research and survey work bought from a foreign partner, whatever your business structure. S1016 covers the insight service itself rather than a one off purchase of a physical publication.

When to use a different code:

• Use the code for management consulting services when the payment is for broader strategy or management advice rather than survey execution
• Use the code for advertising and marketing services when the payment is for creative campaigns or media buying, not underlying research
• Use the matching P code when you are receiving money rather than paying

Who typically uses S1016 purpose code?

Indian companies, startups, agencies and consultancies that buy market research or public opinion polling from overseas research firms, analytics providers or specialist polling agencies. It applies whether you pay as a private limited company, LLP, partnership or proprietorship, as long as the service provider is located outside India.

Examples of transactions covered

• Payment to a foreign research agency for a customer satisfaction survey across multiple international markets
• Fees to an overseas polling firm for public opinion tracking ahead of an international product launch
• Retainer to a global insights company for quarterly brand health and audience measurement reports
• One time payment to a foreign consultancy for conducting competitor and category research in a new export market

When NOT to use S1016 purpose code

• The payment is for general management or business consulting services rather than surveys or polling (use the relevant management consulting purpose code)
• The payment is for advertising, creative campaigns or media buying instead of research (use the relevant advertising or marketing services purpose code)
• The payment is for purchasing a physical publication, dataset or off the shelf report rather than a commissioned study (use the relevant code for publication or information products)
• You are receiving money rather than paying (use the matching P code)

Documents required

To send a payment under S1016, keep the following documents ready so your authorised dealer bank can verify the transaction and report it correctly under FEMA.

How is a S1016 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 research or polling partner bills you, clearly describing the market research or public opinion services delivered.
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 S1016 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 research with advertising: Tagging a marketing or creative campaign fee as market research under S1016, even though no structured survey or polling is involved.
2. Code and invoice mismatch: Using S1016 when the vendor invoice clearly describes a different type of service, which can flag the payment for additional checks.
3. Assuming a Rule 220(3) exemption: Skipping Form 145 on a service import that is not on the specified exemption list, which can attract a ₹1,00,000 penalty per instance.
4. Incomplete documents: Missing invoice, contract or Form A2, so the bank holds the remittance until the paperwork is complete.
5. Missing PAN or KYC: Incomplete PAN or KYC details prevent the bank from processing the outward remittance.
6. Using an outward code for an inward receipt: Applying S1016 to money coming in instead of using the matching P code for incoming payments.

How Skydo helps with payments under S1016 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 S1016 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.