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FLA Return
All you know about FLA Return
Annual return on Foreign Liabilities and Assets has been
notified under FEMA 1999 and it is required to be submitted by all the India
resident companies which have received FDI and/ or made overseas investment in
any of the previous year(s), including current year.
The FEMA regulations also require partnership firms to file
FLA annual return if they have received FDI or made ODI. In the case of
partnership firms, the RBI will issue a dummy CIN upon its request which will
be used only for the filing of FLA annual return. In case a dummy CIN has
already been issued, the partnership firm will use the same for the filing of
the FLA return.
If the company’s accounts are not audited before the due date
of submission then the Return should be
submitted based on provisional account. 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.
Consequence on Non-Filing
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.
