A. Which entities are required to submit the FLA Return

Ans. The annual return on Foreign Liabilities and Assets (FLA) is required to be submitted by the following entities which have

In the previous year(s) including the current year

B. Whether all the Companies received foreign investment needs to file FLA Return?

Ans. Yes, All the companies received foreign investment in their companies needs to file FLA with ROC.

C.  If a company / LLP / Others did not receive FDI or made overseas investment in any of the previous year(s) including the current year, do we need to submit the FLA return?

Ans. If an Indian company / LLP / Others does not have any outstanding investment in respect of inward and outward FDI as on end-March of reporting year, the company need not submit the FLA Return.

D. Whether a company needs to submit the FLA Return, if it has received only share application money?

Ans. If a company has received only share application money and does not have any outstanding foreign direct investment or overseas direct investment as on end-March of the reporting year, then the company is not required to fill-up the FLA return.

E.  If the company has not received any inward FDI / made overseas investment in the latest year, do they need to submit the FLA Return

Ans. If the company has not received any fresh FDI and/or overseas direct investment (ODI) in the latest year but has outstanding FDI or/and ODI, it is required to submit the FLA return each year by July 15. It needs to submit FLA return till it continues to have any outstanding FDI or/and ODI in its balance sheet.

F. What information should be reported in FLA return, if balance sheet of the company is not audited before the due date of submission?

Ans. If the company’s accounts are not audited before the due date of submission, i.e. July 15, then the FLA Return should be submitted based on unaudited (provisional) account.  

Once the accounts get audited and there are revisions from the provisional information submitted by the company, company can submit the revised FLA return based on audited accounts by end–September.

G. What is due-date of filing of FLA?

Ans. Due date of filing of FLA is 15th July,.

H.  What will be the consequences in case we do not file the said FLA Return by 15th July

Ans. 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

I. If an old/new company wants to file the previous year FLA form; can the company file the previous year FLA form.

Ans. Yes, company can file the previous year FLA form (through online FLA portal only) by taking approval from RBI. For taking approval, they need to send mail to surveyfla@rbi.org.in

J. What will do, if the company has submitted the FLA form in old format

Ans. RBI will accept FLA form submitted through online portal only (Old format email-based FLA forms will not be accepted)

K. If a company / LLP / Others did not receive FDI or made overseas investment in any of the previous year(s) including the current year, do we need to submit the FLA return?

Ans. If an Indian company / LLP / Others does not have any outstanding investment in respect of inward and outward FDI as on end-March of reporting year, the company need not submit the FLA Return.

L.  Is it required to submit any financial statements like balance sheet or P&L accounts (audited/ unaudited) along with the FLA return

Ans. No balance sheet or profit loss accounts need to be submitted. Only annual return on FLA through online web-based reporting portal needs to be submitted before due date (July 15).

(Author – CS Divesh Goyal, GOYAL DIVESH & ASSOCIATES Company Secretary in Practice from Delhi and can be contacted at csdiveshgoyal@gmail.com).

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