Annual Return on FLA

Foreign Liabilities and Assets (FLA) Return is an Annual Return that is required to be submitted by those entities which have received FDI and/or made overseas investments in any of the previous years including the current year i.e., entities that have Foreign Assets or Liabilities in their Balance Sheets.

Applicability

The following entities are required to file FLA Return:

• Companies within the meaning of Section 1(4) of the Companies Act, 2013;
• LLPs;
• Others [including SEBI registered AIFs, Partnership Firms, Public Private Partnerships (PPP), etc.].

Due Date 

15^th July of every year. However, if the accounts are not audited before the due date of submission, then the FLA Return shall be submitted based on unaudited/ provisional accounts and once the accounts are audited, revised FLA Return shall be submitted by 30^th September of the same year.

NOTE: The due date of filing FLA return- 2021 has been extended up to 31^st July, 2021.

FLAIR: RBI in the year 2019, introduced a new web-based interface, FOREIGN LIABILITIES AND ASSETS INFORMATION REPORTING (FLAIR) SYSTEM, for the purpose of accepting Returns via web and to discontinue the traditional e-mail-based system. Further, first time users need to register on https://flair.rbi.org.in to start filing their return.

Non-Applicability 

In the following instances an entity is not required to submit FLA Return:

• No outstanding investment in respect of inward and outward FDI as on 31^st March;
• If a Company has received only share application money and does not have any FDI or ODI outstanding as on 31^st March;
• If all non-resident shareholders of a Company have transferred their shares to the residents during the reporting period and the Company does not have any outstanding investment in respect of inward and outward FDI as on 31^st March;
• Shares are issued by reporting Company to non-residents on non-repatriable basis.

Non-compliance

There are no such specific penalties for non-compliance of FLA provisions however, non-filing of Return by the due date will be treated as a violation of FEMA and penalty clause may be invoked for such violation.