FLA Return Filing in Delhi

The Foreign Liabilities and Assets (FLA) Return is an annual mandatory filing for Indian entities in Delhi 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 in Delhi, 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 in Delhi:

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

Non-Applicability of FLA Return

The FLA Return is not required for entities in Delhi 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 for entities in Delhi 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 in Delhi 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 for entities in Delhi:

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

Steps for Filing FLA Return

Filing the FLA Return for entities in Delhi 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 from Delhi.
Provide detailed entity information, including CIN, PAN, and registered address in Delhi.
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 for the Delhi entity.
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 in Delhi?

With GlobalTaxman, you benefit from:

Accurate and timely filing of your FLA Return in Delhi.
Expert guidance to navigate the complexities of RBI compliance for Delhi-based entities.
End-to-end support, from registration to final submission for companies in Delhi.

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