S1105 Purpose Code: Museums, library and archival services

Purpose code S1105 is used when an Indian business pays a foreign vendor for museums, library or archival services.

What is the S1105 purpose code?

Purpose code S1105 is used when an Indian business sends money abroad to pay for museums, library or archival services. This includes charges for specialist research in foreign archives, paid access to international library collections, or services from overseas museums and cultural institutions that support your work in India. It does not cover the import of physical goods such as books, artefacts or exhibition materials, which fall under import of goods purpose codes instead. Under RBI FEMA guidelines, this outward payment is classified under personal, cultural and recreational services and reported accordingly.

When to use S1105 purpose code?

Use S1105 when you are paying an overseas museum, library, archive or similar cultural institution for professional or access-based services delivered to your organisation in India. It is the correct RBI purpose code for these cultural and archival services bought from a foreign provider, whatever your business structure. S1105 covers the service element, not the physical import of books, artefacts or other goods.

When to use a different code:

• Use the import of goods purpose codes when the payment is mainly for physical items like books, artefacts or exhibition materials
• Use other cultural service purpose codes when the payment is for artistic performances, film, media or entertainment services rather than museum or archival work
• Use the matching P code when you are receiving money rather than paying

Who typically uses S1105 purpose code?

Indian companies, educational institutions, research organisations and agencies that pay overseas museums, libraries or archives for access, research, digitisation or other cultural services. It applies whether you pay as a private limited company, LLP, trust, society or proprietorship, as long as the service is provided from outside India.

Examples of transactions covered

• Payment to a foreign archive for document retrieval, copying and certification services for historical records
• Annual subscription to an international research library that provides digital access to its collections for your organisation in India
• Fees to an overseas museum for curatorial advisory services and access to its research resources
• Charges from a foreign archival institution for digitisation and licensed use of rare materials for a project in India

When NOT to use S1105 purpose code

• The payment is mainly for importing physical books, artefacts or exhibition materials from abroad (use the relevant import of goods purpose code)
• The payment is for artistic performances, film, media, sports or entertainment services rather than museum or archival work (use the appropriate cultural service purpose code)
• The payment is for general training, consulting or academic services that are not specifically museum, library or archival in nature (use the relevant professional or educational service purpose code)
• You are receiving money rather than paying (use the matching P code)

Documents required

To send a payment under S1105, keep the following documents ready so your authorised dealer bank can verify the transaction and report it correctly under FEMA.

How is a S1105 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 museum, library or archival service provider bills you, clearly describing the access or 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 S1105 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 services with imported goods: Tagging a payment for physical books or artefacts under S1105 when it belongs under an import of goods purpose code.
2. Code and invoice mismatch: The code not matching what your vendor invoice describes, which can flag the payment for additional checks.
3. Assuming a Rule 220(3) exemption: Skipping Form 145 on a payment that is not on the specified exemption list, which can carry a ₹1,00,000 penalty per instance.
4. Incomplete documents: Missing invoice, agreement or Form A2, so the bank holds the remittance until everything is provided.
5. Missing PAN or KYC: Incomplete KYC or an incorrect PAN prevents the bank from releasing the payment.
6. Using an outward code for an inward receipt: Applying S1105 to money coming in instead of using the corresponding P purpose code.

How Skydo helps with payments under S1105 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 S1105 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.