Foreign Liabilities and Assets Annual Return (FLA Return): Due Date, Applicability (2024)

FAQs

Foreign Liabilities and Assets Annual Return (FLA Return): Due Date, Applicability? ›

Foreign Liabilities and Assets Annual Return comes under the Foriegn Exchange Management Act (FEMA), and it is mandatory to file for businesses who either received FDI or Made FDI abroad. FLA is required to be filed before the due date of 15th July, and if missed, it can lead to a penalty under FEMA.

FLA annual return should cover all the foreign investments made by the company and/or to the company and it must be directly submitted by the company to the Reserve Bank of India.

What is the applicability of FLA Return? It applies to entities receiving or making FDI or ODI, including companies, LLPs, AIFs, Partnership Firms, and PPPs. What is the non-applicability of FLA Return? Entities without FDI or ODI, or only involved in share application money without outstanding FDI/ODI, need not file.

RBI has extended the due date for filing of Foreign Liability and Assets (FLA) return for the F.Y. 2023-24 to 31st July 2024. Originally, the date for filing the FLA Annual Return for Financial year (FY) 2023-24 was 15th July 2024.

Ans: Non-filing of the return on or before due date (July 15 of every year) will be treated as a violation of FEMA and penalty clause may be invoked for violation of FEMA.

The penalty for non-filing of FLA return is as follows:

If the sum is not quantifiable, a penalty of Rs. 2,00,000 will be applicable. Additionally, if the contravention continues, a penalty of Rs. 5,000 per day will be imposed on the company.

Foreign liabilities and assets annual return (FLA) is mandatory to file for companies, LLPs, and certain other entities who are involved in foreign investment, whether they receive FDI or make FDI abroad. FLA is to be reported as required by the Reserve Bank of India before 15th July of each year.

Prepare Online Return, Verify and Submit: Once the companies create a business user successfully on FLAIR portal and get the password from RBI on registered email ID, Company will prepare the FLA return online, download and re-check and submit the return online. The FLA return is divided into 5 Sections.

FLA return is the annual return required to be submitted by the following entities which have received FDI and/or made FDI abroad (i.e. overseas investment) in the previous year(s) including the current year i.e., who holds foreign assets or/and liabilities in their balance sheets by 15^th of July every year.

The FLA Workplace Code of Conduct and Compliance Benchmarks define labor standards that aim to achieve decent and humane working conditions in factories and manufacturing facilities.

What is the due date start date? ›

Start date: the earliest possible date (start-of-day) you can begin working on a task. Due date: the date (end-of-day) when you would ideally like to have the task completed.

The estimated due date (EDD or EDC) is the date that spontaneous onset of labor is expected to occur. The due date may be estimated by adding 280 days ( 9 months and 7 days) to the first day of the last menstrual period (LMP). This is the method used by "pregnancy wheels".

Due date rate is the amount of debt that has to be paid on a date decided in the past. It can also be known as maturity date rate. If the due date amount is higher than the actual amount, then it results in profit, otherwise it's a loss.

After every major disaster, FEMA conducts audits of disaster assistance payments to ensure that taxpayer dollars were properly provided by the agency and appropriately used by recipients.

How long will it take to get FEMA/State disaster help? If you are eligible for help, you should receive a U.S. Treasury/State check or notification of a deposit to your bank account within about ten days of the inspector's visit. Other types of assistance may be provided later, based on specific eligibility and need.

In its letter, FEMA said it capped stays between June 2021 and May 2023 because by that time transmission rates were down and 20 days was the Centers for Disease Control and Prevention's maximum recommended period of quarantine.

Foreign Liabilities and Assets (FLA) is an Annual Return which is to be submitted by all those Indian Resident Companies which have received Foreign Direct investment (FDI) and/or made Investment Overseas (FDI Abroad) in previous year(s) which shall also include information of the current year.

Although there are multiple formulas, return on assets (ROA) is usually calculated by dividing a company's net income by the average total assets. Average total assets can be calculated by adding the prior period's ending total assets to the current period's ending total assets and dividing the result by two.

Reporting by U.S. Taxpayers Holding Foreign Financial Assets

U.S. taxpayers holding foreign financial assets may be required to report certain information about those assets on Form 8938, Statement of Specified Foreign Financial Assets. Taxpayers must attach Form 8938 to their annual tax return.

If a company fails to file the FCGPR form within the prescribed timeline, it will face penalties. The penalty for delayed reporting is 1% of the total investment amount, with a minimum of INR 5,000 and a maximum of INR 5 lakhs per month or part thereof for the first six months of delay.