FLA Return

Any default in filing FLA return by 15th July will lead to imposition of penalty under FEMA that is 3 times of the amount involved in contravention and Rs. 5,000 per day for each day of default.

Therefore, it is suggested that FLA return is filed before 15th July on basis of provisional accounts and revise the same by 30th September on the basis of final audited accounts.

No, information should be reported only as on 31st March. If the accounts of the company are closed on a different date, the information should be given as on 31st March based on internal assessment.

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 15.

If the Partnership firms, Branches or Trustees have any outward FDI outstanding as of end-March of the reporting year, then they are required to send a request mail to get a dummy CIN number which will enable them to file the Excel based FLA Return. If any entity has already got the dummy CIN number from the previous survey, they should use the same CIN number in the current survey also. It is also informed that these dummy CIN numbers are provided by RBI for filling the excel based FLA return only and not for any other purpose.

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.

If all non-resident shareholders of a company has transferred their shares to the residents during the reporting period and the company does not have any outstanding investment in respect of inward and outward FDI as on end-March of reporting year, then the company need not submit the FLA Return.

Ans.: Shares issued by reporting company to non-resident on Non-Repatriable basis should not be considered as foreign investment; therefore, companies which have issued the shares to non-resident only on Non-Repatriable basis, is not required to submit the FLA Return.

RBI has introduced a web based portal for filing of FLA Return known as Foreign Liabilities and Assets Information Reporting (FLAIR) system. Reporting entities are required to register on web portal before filing FLA Return and fill the details as sought in the form. Reporting entities can amend/alter data entered in FLAIR and view/download the information submitted.