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FLA RETURN FILING
@ Rs 9,999
TO WHOM IT IS APPLICABLE?
The annual return on Foreign Liabilities and Assets (FLA) is required to be submitted directly by all the Indian companies / partnership firms / LLP
- Who have received foreign direct investment
- Who have made foreign direct investment
The last date for submission of return is 31st July, If the company’s accounts are not audited before the due date of submission, i.e. July 31st, then the FLA Return should be submitted based on unaudited (provisional) financial statements. Once the accounts gets audited and there are revisions from the provisional information submitted by the company, they are supposed to submit the revised FLA return based on audited accounts by end – September.
DOCUMENTS REQUIRED
- Provisional or Audited financial statements
- Shareholding patterns
- Non-resident shareholding
- Number of employees on Payroll
- Details of FDI received or made
- User id and password of FLAIR system
- Authority letter if entity not registered on FLAIR system
FAQs
If the Indian company does not have any outstanding investment in respect of inward and outward FDI as on end-March of reporting year, the company need not submit the FLA Return.
If a company has received only share application money and does not have any foreign direct investment or overseas direct investment outstanding as on end-March of the reporting year, then that company is not required to fill up FLA return.
If the company has not ‘received any fresh FDI and/or ODI (overseas direct investment)’ in the latest year but the company has outstanding FDI and/or ODI, then that company is required to submit the FLA Return every year by July 31.
FLA return is mandatory under FEMA 1999 and companies are required to submit the same based on audited/ unaudited account by July 31 every year.
You are required to submit details online on FLAIR system before due date. Financial statements or any information in separate annex should not be forwarded along with the FLA return
FLA Return and Annual Performance Report (APR) for ODI are two different returns and monitored by two different departments of RBI. So you are required to submit both the returns if these are applicable for your company.
Non-filing of the return before due date will be treated as a violation of FEMA and penalty clause may be invoked for violation of FEMA. The penalty as prescribed under the FEMA is “THRICE” the sum involved in contravention or Rs.2,00,000 if the offence is non-quantifiable and if the contravention is continuing every day, then Rs.5000 for every day after the first day during which the contravention continues.