Information Required for Filing FLA Return

The RBI has structured the FLA Return into five distinct sections, each capturing crucial information about foreign liabilities and assets:

Section I – Identification Particulars

This section includes:

• Prefilled Information: Company name, PAN, CIN, and contact email are auto-filled after successful user registration.
• Contact Details: Information about the contact person, including name, phone number, and email.
• NIC Code: Use National Industrial Classification (NIC) codes to specify industry activities.
• Company Specifics: Indicate whether the company is an Asset Management Company or has conducted any business activity in the last financial year.

Section II – Financial Details

This section captures:

• Capital: Total paid-up capital, distinguishing between participating and non-participating share capital.
• Profit and Loss Account: Details on profit/loss before and after tax and dividends issued.
• Reserves & Surplus: Separate reporting of reserves and surplus figures.
• Sales and Purchases: Include domestic and foreign sales and purchases.
• Employee Information: State the number of employees on the payroll.

Section III – Foreign Liabilities

Entities must disclose:

• FDI in India: Details on foreign direct investors, equity holdings, and liabilities to direct investors.
• Portfolio Investment in India: Specify equity and debt securities held by non-resident investors.
• Other Liabilities: Report financial liabilities to foreign parties, excluding domestic liabilities.

Section IV – Foreign Assets

This section includes:

• Overseas Direct Investment (ODI): Information on Direct Investment Enterprises abroad.
• Debt Securities and Portfolio Investment Abroad: Include investments in money market instruments and bonds.
• Other Assets: Report financial assets with foreign unrelated parties.

Section V – Variation Report

This section auto-generates a comparison of the current year's data with the previous year, highlighting any significant variations.

Procedure for FLA Return Filings

Since June 2019, the FLA Return submission process has transitioned to a web-based system. Here’s a step-by-step guide for filing through the FLAIR portal:

Setting Up a Business User in FLAIR Portal

1. Access the FLAIR Portal: Visit the official FLAIR portal.
2. Register as a New Entity User: Click on the “Registration Form for New Entity User” link.
3. Fill in Entity Details: Provide comprehensive information, including CIN, PAN, and registered address.
4. Authorised Person’s Information: Input details of the authorized person, including their name and PAN.
5. Upload Documents: Attach necessary documents, including a verification letter and PAN cards.

Preparing and Submitting the FLA Return

1. Create and Verify Business User: After registration, log in to prepare the FLA return.
2. Review and Submit: Download, review for accuracy, and submit the FLA return online through the FLAIR portal.

After Submission

Upon successful submission, the FLAIR portal generates an acknowledgment confirming that the FLA return has been processed for the year.

Important Notes for FLA Return Filing

• Ensure that the registered email ID is accurate, as it will receive the password and OTP for login.
• If there are changes to the entity’s email ID or name during the reporting period, deactivate the current account and create a new one.
• If the CIN remains unchanged, previously entered data will populate the new account, making the update process easier.
• Download a draft of the FLA return before final submission to ensure all information is accurate and complete.

How Compliance Calendar LLP Can Help

At Compliance Calendar LLP, we provide comprehensive assistance throughout the FLA Return filing process. Our experts ensure that your submission is timely and accurate, helping you navigate the complexities of regulatory compliance effortlessly.

Due Date for Filing FLA Return

The FLA Return must be filed by July 15th every year. In cases where accounts are not audited by this date, entities can file using unaudited or provisional figures. If the audited accounts are available later, a revised FLA Return must be submitted by September 30th of the same year.

Penalties for Late Filing of FLA Return

Failing to file the FLA Return on time can lead to significant penalties under FEMA:

• Late Submission Fee (LSF): If the FLA Return is not submitted by the due date, a fee of INR 7,500 may be imposed.
• Penalties for Violations: Failure to file or providing false information can result in severe penalties, including:
• Monetary Penalty: Up to 300% of the amount involved in the violation or a minimum of INR 2 Lakh if the violation amount cannot be quantified.
• Continued Non-compliance: A daily penalty of INR 5,000 for each day the violation persists after the first day.