FLA stands for Foreign Liabilities and Assets and this return has to be submitted by every firm which has either received FDI and/or made the overseas investment. This is inclusive of the previous years’ transactions, and the current year (till the 15th of July).
The FEMA or the Foreign Exchange Management Act, of 1999, has emerged and its importance has also grown after the comPANies have started to involve more with foreign investments. Talking of the Return filing of the FLA, it has been mentioned under the regulation of FEMA, 1999 that any Company who has either made ODI (Overseas Development Institute) or received FDI (Foreign Direct Investment) has to file the FLA annual return or is liable for the penalty.
Guidelines for filing FLA return
If the Company isn’t able to file the FLA return within the stipulated time, the Company would be imposed a fine of thrice the sum involved in the contravention. And in case of continuation of contravention, a penalty of Rs 5,000 per day is imposed on the Company.
If the amount is not quantifiable, then a penalty of Rs. 2,00,000 has to be paid by the firm.
The regional offices of RBI could use their power for compound contraventions without any limit, except the regional offices of Kochi and PANaji.
Registration PROCess for FLA return filings
The Company accounts have to be audited before the submission day, which is 15th of July, every year. In case if the accounts are not audited then, the provisional has to be submitted and later on, by the end of September, the final document has to be submitted.
For filing an FLA return, the following pROCess has to be followed:
The FLA return has to be filed in an excel format without any other document should not be forwarded along with the FLA return.
All the financial details and other relevant documents of the Company have to be filled in the return which is based on the audited financial accounts.
Then the Company has to fill out the details and then mail it to the RBI at [email protected] from an official email id of a person. Those who can file the FLA return are Company Secretary, Chief Financial Officer, and Directors.
The acknowledgement of the form is then provided to the person’s mail, from which the mail was sent.
There are a few Company types which are exempted from filing this FLA Return. These are:
Those comPANies which do not have an outstanding balance of FDI and ODI by the end of the Financial year.
Those comPANies which have only issued shares on a non-repatriable basis to the non-residents of India
Those comPANies which have not received any FDI or not made any ODI and have only received share money application