Fla return

Latest as per new changes of RBI.(FLAIR) regulation have been attached as on 1st july 2019

1. Foreign Liabilities and Assets Annual Return (FLA Return) PRESENTED BY, M.P. GLADIUS PAUL

2. What is FLA FLA (Foreign Liabilities and Asset) Return under FEMA (Foreign Exchange and Management Act, 1999) is Annual Return required to be submitted by all the India resident companies, Partnership firms, SEBI registered Alternative Investment Funds (AIFs), Public Private Partnerships (PPP), Branches or Trustees which have received FDI and/ or made overseas investment in any of the previous year(s), including current year.(July 15 every year ).

3. Who needs to file FLA Annual Return? The regulation under FEMA, 1999 requires any company who has either made ODI or received FDI, to file the FLA annual return. The companies have to report the current financial year’s FLA as well as the previous year(s) assets and liabilities. In the case where a company does not have any foreign assets or liabilities for the current year but has outstanding FDI or ODI from the previous year(s), it must file the FLA annual return indicating their outstanding assets or liabilities. 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.

4. Companies exempted from filing FLA return Companies that have only issued shares on a non- repatriable basis to the non-residents of India are exempt from filing FLA return. Companies who do not have any outstanding balance of FDI or ODI by the end of the financial year are exempt from filing FLA return. Companies that have only received share application money and have not received any FDI or not made any ODI, are exempt from filing FLA return.

5. Due Date for FLA FLA is required to be submitted by July 15 every year. In case FLA filed on the basis of provisional accounts. In case there is variation in provisional and audited financials, a revised FLA is to be filed based on audited accounts before September end . In view of the recent change in reporting platform for submission of FLA return, the last date for filing the FLA return for 2018-19 has been extended to July 31, 2019 for convenience of reporting this year.

6. Non Compliance 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 lakh if the offence is non-quantifiable and if the contravention is continuing every day, then Rs . Five Thousand for every day after the first day during which the contravention continues.

7. Filing of FLA return With the objective to enhance the security-level in data submission and further improve the data quality, the previous email-based reporting system for submission of the FLA return is replaced with the online reporting portal (web-based system ). Foreign Liabilities and Assets Information Reporting (FLAIR)system has been introduced by RBI via recent notification dated June 28, 2019

8. Four section for filling FLA online form Section 1 – Basic details Section 2 – Financial details Section 3 – Foreign investment (investment made in India) Section 4 – Foreign assets ( investment made in aboard) C:\Users\Dell\Downloads\Format_Fla_Form (1).pdf

9. Filled form C:\Users\Dell\Downloads\FLA_ONLINE_FORM.pdf THANK YOU !!!!!