RBI FLA Return
The entities which accepting (FDI) Foreign Direct investment in india. in any mode has to file FLA (Foreign Liabilities and Assets) Return with the RBI on or Before 15th of July.
For filing FLA return one has to create a user account in https://flair.rbi.org.in/fla/faces/pages/login.xhtml Portal. the following persons can create a user account
- Company
- Limited liability Partnership
- Partnership Firm
- Others.
The Form for Annual Return on Foreign Liabilities and Assets contains 4 Sections
- Section I - Identification Details
- Section II - Financial Details
- Section - III - Foreign Liabilities
- Section - IV - Foreign Assets
Lets see each in detail
Section I - Identification Details
this contain the basic details of the company such as name PAN, CIN, Contact details of the authorised person these details will be pre filled on selection of new form. the other details such as Nature of Business, Account closing Date need to be entered and need to give the following details
Whether your company is merged/amalgamated during year?
Whether the Company is listed?
Identification of the reporting Company (in terms of inward FDI) i.e. whether subsidiary of Associate or other type
Whether the Company is Asset Management Company?
Whether the Company has Technical Foreign collaboration?
Whether the company has any business activity during latest financial year?
Section II - Financial Details
in this section one has to give the financial details of the company or entity such as
Total Paid-Up Capital of Indian Company and its bifurcation.
Profit and Loss Account (from P/L Account)
Reserves & Surplus (from Balance Sheet)
Sales and Purchase made during the financial year
Employee Information of reporting Indian company(in actual)
Section - III - Foreign Liabilities
in this section we need to give the details of Investments made in India by the foreigner. the details of FDI - Foreign Direct Investment as follows
Investment in India under Foreign Direct Investment (FDI) scheme (10% or more Equity Participation)
Investment in India under Foreign Direct Investment (FDI) scheme (Less than 10% Equity Holding)
Also other investments as Portfolio Investment in India such as Equity Securities, Debt Securities, Money Market Instruments, Bonds and other instruments and any Disinvestments in India during the year
Other Investment (Outstanding Liabilities with Foreign Unrelated Parties) such as Trade Credit, Loans, Currency and Deposits, Other payable accounts
Section - IV - Foreign Assets
Here we need to give the information of investments made by indians in Foreign such as Overseas Direct Investment, Portfolio Investments abroad and Other Investment (Outstanding Liabilities with Foreign Unrelated Parties) such as Trade Credit, Loans, Currency and Deposits, Other payable accounts
Late Submission fee
the Due date for filing the FLA return is 15th of July in case the form is not filed with in the due date the Late Submission Fee for reporting delays under Foreign Exchange Management Act, 1999 (FEMA) as follows:
as per latest circular RBI/2022-23/122 A.P. (DIR Series) Circular No.16 dated September 30, 2022
The Late Submission Fee (LSF) was introduced for reporting delays in Foreign Investment (FI), External Commercial Borrowings (ECBs) and Overseas Investment related transactions with effect from November 07, 2017, January 16, 2019 and August 22, 2022 respectively. It has now been decided to bring uniformity in imposition of LSF across functions. The following matrix shall be used henceforth for calculation of LSF, wherever applicable:
Form ODI Part-II/ APR, FCGPR (B), FLA Returns, Form OPI, evidence of investment or any other return which does not capture flows or any other periodical reporting: is Rs. 7500/-
for FC-GPR, FCTRS, Form ESOP, Form LLP(I), Form LLP(II), Form CN, Form DI, Form InVi, Form ODI-Part I, Form ODI-Part III, Form FC, Form ECB, Form ECB-2, Revised Form ECB or any other return which captures flows or returns which capture reporting of non-fund transactions or any other transactional reporting - [7500 + (0.025% × A × n)]
“n” is the number of years of delay in submission rounded-upwards to the nearest month and expressed up to 2 decimal points.
“A” is the amount involved in the delayed reporting.
LSF amount is per return. However, for any number of Form ECB-2 returns, delayed submission for each LRN will be treated as one instance for the fixed component. Further, ‘A’ for any ECB-2 return will be the gross inflow or outflow (including interest and other charges), whichever is more.
Maximum LSF amount will be limited to 100 per cent of ‘A’ and will be rounded upwards to the nearest hundred
before this circular the late submission fee doesn't exists the only the solution is condonation which costs around Rs.2,00,000/-