FLA Return Filing

The Foreign Liabilities and Assets (FLA) Return is an annual mandatory filing for Indian entities that have received foreign direct investments (FDI) or made overseas investments. It is filed with the Reserve Bank of India (RBI) and provides detailed data on foreign liabilities and assets of these entities. Governed by the Foreign Exchange Management Act, 1999 (FEMA), this return ensures compliance with India’s foreign exchange regulations and financial transparency.

At GlobalTaxman, we provide expert assistance with FLA Return filing, ensuring your submission is accurate, timely, and compliant with RBI guidelines.

Applicability of FLA Return

The FLA Return must be filed by the following entities:

• Companies incorporated under the Companies Act, 2013.
• LLPs registered under the Limited Liability Partnership Act, 2008.
• Other organizations such as SEBI-registered AIFs, Partnership Firms, and PPPs involved in FDI activities.

Non-Applicability of FLA Return

The FLA Return is not required if:

• The entity has neither received FDI nor made overseas investments in the current or previous years.
• The entity only holds share application money with no outstanding FDI or ODI by the end of the reporting year.
• Non-resident shareholders sold their shares to residents, and the entity has no outstanding foreign capital at the end of the reporting year.

Due Date for Filing FLA Return

The FLA Return must be submitted by July 15th annually. Entities can file the return using provisional figures if accounts are unaudited by this date. If accounts are audited later, a revised return must be filed by September 30th.

Penalty for Late Filing

Non-compliance with FLA filing deadlines may result in penalties under FEMA:

• Late Submission Fee (LSF): INR 7,500 if the return is filed late but before enforcement action.
• Monetary Penalties: Up to 300% of the amount involved or a minimum of INR 2 Lakh if the violation amount is unquantifiable.
• Daily Penalty: INR 5,000 per day for continued non-compliance.

Information Required for Filing

The FLA Return is divided into five sections to capture detailed information:

• Section I: Identification details such as company name, PAN, CIN, and contact information.
• Section II: Financial details, including capital, profit and loss account, reserves, and sales data.
• Section III: Foreign liabilities, including FDI and portfolio investments in India.
• Section IV: Foreign assets, including ODI and portfolio investments abroad.
• Section V: Variation report comparing current and previous year data.

Steps for Filing FLA Return

Filing the FLA Return is now a web-based process via the FLAIR portal. Follow these steps:

Setting Up a Business User

• Visit the FLAIR portal and register as a new entity user.
• Provide detailed entity information, including CIN, PAN, and registered address.
• Submit authorized person details and upload required documents like verification and authority letters.

Preparing and Submitting the Return

• Log in using credentials received from the RBI.
• Complete all sections of the return with accurate data.
• Review the return before submission and download a draft for verification.
• Submit the return online and receive an acknowledgment from the FLAIR portal.

Why Choose GlobalTaxman for FLA Return Filing?

With GlobalTaxman, you benefit from:

• Accurate and timely filing of your FLA Return.
• Expert guidance to navigate the complexities of RBI compliance.
• End-to-end support, from registration to final submission.

Ensure seamless and compliant FLA Return filing with our experienced professionals. Contact Global Taxman today to simplify your FLA filing process!