Meaning of FLA Return:-
Annual Return on Foreign Liabilities and Assets required to be filed by an Indian Company and LLP to RBI within the prescribed due date. This Return is filed Online on RBI Portal i.e. https://flair.rbi.org.in/fla/
Requirement to file FLA Return:-
The Companies (includes Partnership Firms/ LLP’s, etc) which have received FDI (Foreign Direct Investments) and/or made FDI abroad (overseas investment) in any of the financial year are required to submit FLA Return to RBI.
The Financial Statement of the company for such particular FY can exactly explains the status of Inward FDI or Outward FDI.
Companies exempted from filing FLA return
1. 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.
2. 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.
Due date of Filing of FLA Return:-
The companies are required to submit the FLA Return based on audited/unaudited account by July 15 of every year.
If the FLA Return is submitted on the basis of unaudited account by July 15, they are supposed to submit the revised FLA return based on audited accounts by end – September i.e. 30th September.
Audited or Unaudited Financials:-
If the company’s financials are not audited or finalized before the due date of submission of the Return, then FLA Return needs to be submitted on the basis of the Unaudited or provisional financials.
But this should be kept in mind that once the Financials get audited the company needs to file the revised FLA Return on the basis of Audited Accounts on the RBI Portal.
Consequence of Non-filing of FLA return
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