Why do you need FLA Return?
The Foreign Liabilities and Assets Return, or FLA Return, is an annual requirement, through which the RBI wants Indian entities to detail about their foreign investments and financial engagements, which include Foreign Direct Investments (FDI) and Overseas Direct Investments (ODI) among others. The goal of this is to provide a complete guide. Indian foreign investment position that could work for both economic analysis and policy formulation.
Who Will File FLA Return?
The Indian company whether it's LLP or FDI or ODI in the forms of shares, equity and ECB or External Commercial Borrowings (ECB) must file the FLA return. What is more, it comprises holdings of assets or obligations denominated in foreign currencies, regardless of whether the transactions were performed in the current year.
What is the last day for submitting the Annual FLA Return?
The FLA Yearly Return needs to be filed by July 15th each year, covering the condition by March 31st, the day before the end of the previous year.
Is it possible to reapply the Financial Literacy Act on unsupervised records?
Indeed, if audited accounts have not been available by deadline of July 15, these entities must file FLA Return based on either unaudited or provisional accounts. An updated return after the audit should be resubmits by September 30th if the matter requires.
What is the procedure for lodging the FLA Return?
Visitors should firstly get themselves in the RBI FLAIR portal and then to file the FLA Return online by using the "FLA Online Form “.
What does the FLA include in Return section?
The FLA Return is structured into five main sections: Identifying Information, Financial Details, Foreign Liabilities, Foreign Assets and Vary Report that is auto-generated from the entered data.
Is it necessary for the FLA return to be filed by the partnership?
Of course, relationship firms with FDI or ODI have to obtain the dummy CIN (Corporate Identification Number) from the RBI for filing the FLA Return. If a dummy CIN has been previously issued, it should be utilized for filing.
What happens when the FLA Return is not filed?
If FLA Return is not filed, FEMA penalty up to 300% of the amount included in the violated amount or a fixed penalty of Rs. can be imposed. Rs. 2 Lakh for non-value-based offences and a daily fine of Rs. 5,000 for continued non-compliance.
Is it necessary to file the FLA Return?
If there is no investment abroad by year-end and only the FDI is the share application amount without further repatriation, or the investment is transferred from non-residents to residents with no repatriation, entities are exempt.
How is India Filings going to facilitate the FLA Return filing?
India filings provides comprehensive support for FLA Return filing whereby you are guided on compliance requirements, assisted in preparation and lodging of return in line with FEMA regulations.
If the Company has (Annual Performance Report) APR filed for Overseas Direct Investment, Whether FIP is to be filed or not?
Even though the company has APR filed, the company has to file FLA as the returns are separate and reported to different departments of the RBI.
What is the subject of item 5 of sales made during the financial year of Section II?
In this field we are required to provide the information of sales made during the financial year and this includes both sales of goods and services. In item, 5. 1 we need to give detail of Domestic Sales and item 5. 2 we are obliged to give the information on export sales.
Where should we report the non-participating preference shares issued to non-residents?
Non-participating preference shares are considered as debt securities If a foreign investor holds non-participating preference shares while also owning equity shares in the Indian reporting business, the non-participating preference share should be reported at item 2. 1 of 1. b FDI and 2. c. Direct Investment in Part III.
What will be the valuation of the equity capital in the listed DIE?
In the case of a company that is listed overseas, the latest end-March share price should be used for the valuation of equity investment at the end of March of previous and latest year.
What is Foreign Direct Investment in India by Indian companies?
If the reporting Indian firm invests in equity and/or participation preference shares of foreign corporations through the Overseas Direct Investment Scheme in India, this should be stated on the FLA return applicability.