Purpose Code S0215 - Stevedoring, demurrage and port handling charges (airlines)

The S0215 purpose code is for paying ground handling, cargo handling, storage and similar airport charges abroad. Check who uses it, how it differs from an airline's other running costs, and the tax points for this outward remittance.

The S0215 purpose code is used when an Indian business pays airport-related handling charges to a foreign airline, airport or ground handler. The RBI description is "payments on account of stevedoring, demurrage, port handling charges, etc. (airlines companies)". It is the air version of S0214. At an airport, "stevedoring" means loading and unloading cargo and bags from the aircraft. "Demurrage" means storage charges when air cargo sits in the terminal past its free time. "Port handling" becomes ground handling: towing, steps, baggage, ramp and cargo terminal services. S0215 is a current account transaction, a payment for services, not freight. Main air freight is paid under S0209 or S0210, while these handling charges go under S0215.

This Purpose Code should be used only where the transaction fits its defined regulatory scope. Here's when you should and shouldn't use this code:

You should use this code when:

• Ground handling - An Indian airline pays a handler at a foreign airport for ramp, baggage and passenger services.
• Landing and parking charges - Fees billed by a foreign airport for each landing and for parking the aircraft.
• Cargo terminal charges - An exporter pays a foreign air cargo terminal for unloading and handling its shipment.
• Air cargo storage - Storage charges when cargo waits at a foreign airport past the free period.
• Charter flight handling - A charter operator pays the handling agent for a one-off flight abroad.

Do not use this code when:

• The charges are at a seaport, not an airport (use S0214 instead).
• You pay fuel, catering or crew hotels for flights abroad (use S0208 instead).
• You pay the main air freight on imports (use S0209 instead) or exports (use S0210 instead).
• The bill is for aircraft repairs or maintenance abroad (use S1602 instead).

RBI purpose codes are mandatory under FEMA to classify the nature of cross-border transactions entering or leaving India. They allow banks and regulators to accurately track foreign exchange flows and apply the correct regulatory, tax, and reporting treatment.

For individuals, businesses and institutions, correct purpose code usage:

• Ensures transactions are classified correctly under FEMA.
• Enables accurate reporting to the RBI and other regulators.
• Reduces delays caused by compliance checks or misclassification.
• Supports clean audit trails and tax reconciliation.

Bottom-line:

Using the correct purpose code helps ensure smooth processing, regulatory compliance, and faster credit of funds.

1. Select "S0215 – Stevedoring, demurrage and port handling (airlines)" on Form A2 or your bank's outward remittance screen.
2. Upload the handler's or airport's invoice, with flight numbers or the air waybill.
3. File Form 145 (earlier Form 15CA), with Form 146 (earlier Form 15CB) from a CA where your bank asks for it.
4. The bank checks the charges and sends the payment to the airport or handler abroad.

Additional Notes:

• Handling done at a foreign airport by a foreign company is generally not income taxable in India, so TDS is usually nil. A CA's Form 146 can confirm this.
• Airlines often get one monthly bill per station. Keep the list of flights it covers.
• Keep handling charges separate from fuel and catering bills, which go under S0208.

• Using a generic or incorrect purpose code instead of the exact RBI-prescribed purpose code can lead to misclassification of the transaction under FEMA and trigger additional compliance checks by the bank.
• Mismatch between purpose code, invoice, and remittance narration may place the transaction on hold until clarification is provided.
• Submitting unclear or incomplete supporting documents that do not clearly describe the nature of the transaction often result in delays, as banks rely on documentation to validate FEMA compliance.
• Missing mandatory PAN or incomplete KYC documentation can prevent banks from releasing funds until verification is completed.
• Using service-related purpose codes for non-service transactions like capital receipts, investments, gifts, or refunds can result in incorrect regulatory treatment and potential reporting issues.
• Assuming small or recurring transactions do not require accuracy and repeated misclassification can attract regulatory scrutiny over time.

Cross-border payments require accurate purpose code selection and complete compliance documentation. Xflow helps businesses and individuals receive international payments while staying aligned with RBI and FEMA requirements.

With Xflow, you can:

• Select the correct purpose code with clarity
• Organize and maintain supporting documents
• Reduce compliance back-and-forth with banks
• Support FEMA compliant inward remittances