Please be informed that all Companies/LLPs which have received FDI (Foreign Direct Investment) and/or made FDI abroad (i.e. overseas investment) have to file an Annual Return which is Foreign Assets & Liabilities Return (FLA).
1. The due date for filing FLA return is 31st of July, 2019 for the FY 2018-2019.
2. Non-filing of the return before due date will be treated as a violation of FEMA and penalty will be levied on defaulters which shall be three (3) times the sum involved in contravention or Rs. 2,00,000 and if the contravention is continuing every day, Rs. 5,000 for every day for defaulting period.
3. Following companies are not required to file FLA return-
a. Where the Indian company does not have any outstanding investment in respect of inward and outward FDI as on end-March of reporting year.
b. If a company has received only share application money and does not have any foreign direct investment or overseas direct investment outstanding as on end-March of the reporting year.
c. Companies which have issued the shares to non-resident only on Non-repatriable basis (i.e investment net of taxes not to be taken outside India)
1. If the accounts of the Company/LLP are not Audited before the due date of submission, then the FLA Return can be submitted based on unaudited balance sheet.
2. However, once the accounts are Audited and if there are significant revisions from the provisional information submitted by the Company/LLP, then a revised FLA return should be submitted by September 30th.
Author: Rupesh Jain, is a Associate at M&K Associates and can be reached at firstname.lastname@example.org