Monday, July 19, 2021

Annual return on Foreign Liabilities and Assets filing due date, procedure and amendments

 The Due date of FLA (Annual return on Foreign Liabilities and Assets) is generally 31st July every year for the information as per Audited Financial Statements as on 31st March and in case FLA return is filed on the basis of Unaudited statements then it has to be revised before 30th September of that year again as per the Audited Financial Statements.

Earlier it was to be filed in excel utility provided by RBI ( Reserve Bank of India ) and through mail of the Entity who is liable to file FLA.

Now the procedure of Excel Utility and filing through mail has been changed. Now procedure has been laid down for registration of entity and then filing online since 2019. The due date for filing of FLA return has been extended to 31st July 2021 for the FLA for Fin Year 2020-2021.

The step by step procedure of registration and filing of FLA is given here under:

 Registration for ‘Annual Return in Foreign Assets & Liabilities’

Annual return on Foreign Liabilities and Assets has been notified under FEMA 1999 and it is required to be submitted by all the India resident companies which have received FDI and/ or made overseas investment in any of the previous year(s), including current year by July 15 every year. 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.

Pre-requisites:

·         Verification letter: The soft copy of the verification letter is attached herewith companies/LLPs/Others are required fill the required details and convert the same to PDF format and thereafter .pdf file should be attached in User Registration Form under authorised person’s details.

·         Authority letter: The soft copy of the authority letter (doc) is attached herewith companies/LLPs/Others are required to fill the required details and this authority letter has to be signed by concern authority and then after scanning the same; convert it to PDF format and thereafter .pdf file should be attached in User Registration Form under authorised person’s details

 

A.)    Go to https://flair.rbi.org.in , for Registration if already not registered

                The user registration form will appear as follows

 B.) Fill all the required details in form and upload Verification letter & Authority Letter

 C.) Click on Submit

After Successful submission , The USER ID & Password will be sent on Email ID Provided in Form.

The User Needs to change the password on First Time Login on Portal For which OTP will be sent on your registered Mail ID.

 Process of Filing FLA Return:

After successful login, the Assesse can file his return on portal, for which following steps shall be taken:

To File Return, we need to fill Following Four Sections and then Submit

Section I

In this section, Basic details of Company like NAME of company, CIN, email , mobile no. Etc needs to be filed

Section II- Financial Details

a)       Total Paid up capital of Company

 

 

b)      Non resident holding

 

 

c)       Participating preference Share capital

 

 

d)      Profit & Loss Account

 

 

e)       Reserve & Surplus

 

 

f)        Sales & Purchase made during the year

 

 
 

 

 

 

 

 

 

 

 

g)       No. Of Employee in the company

 

 
 

 

 

 


Section III- Foreign Liabilities (Investments made in India)

 

Section IV- Foreign Assets

 

Foreign Direct Investments (10% or more Equity Participation)

ODI- Overseas direct Investments( 10% or more equity Holding)

Foreign Direct Investments (Less than 10% Equity Holding)

DI- Direct Investment abroad (Less than 10% holding)

Portfolio Investment

Portfolio Investment abroad

Other Investments (Outstanding Liabilities with Foreign Unrelated parties)

Other Investment ( Outstanding Claims on foreign unrelated parties)

 

Section V- Variation Report

     

Item Name

Previous year FLA

Current year FLA

 

% Variation

 

 

Mar-20

Mar-20

Mar-21

Previous

Current

 

1

2

3

(2/1-1)*100

(3/2-1)*100

Paid up capital

 

 

 

 

 

Net worth

 

 

 

 

 

Total Sales

 

 

 

 

 

Total Purchase

 

 

 

 

 

 

 Compiled by Ms Shivangi at Sandeep Ahuja & Co