Reporting foreign income, Assets to RBI by Dec 24

Given the situation: - Your unlisted public limited company has a Wholly

Owned Subsidiary (WOS) in Mauritius. - The WOS controls a step-down subsidiary. - There are pending amendments to the project profile and equity/redeemable preference share due to mis-clarification. -

The Authorized Dealer (AD) advises against submitting the Annual Performance Report (APR) and the FLA (Financial Commitment) return until the amendments are approved. -

RBI may impose penalties if the APR and FLA returns are not submitted by December.

To address this dilemma:

1. *Seek AD's clarification in writing*: Request the AD to provide a written clarification on their advice to delay submitting the APR and FLA returns. This will help you document their guidance.

2. *Submit APR and FLA returns with a disclaimer*: You can submit the APR and FLA returns with a disclaimer stating that the reports are based on the current information available and that the company is in the process of amending the project profile and equity/redeemable preference share.

3. *Attach supporting documents*: Attach supporting documents, such as the application for amendment, to the APR and FLA returns. This will provide context to the RBI and demonstrate your company's efforts to comply.

4. *Request RBI's clarification*: If possible, seek clarification from the RBI on their expectations regarding the submission of APR and FLA returns in cases where amendments are pending.

 5. *Be prepared to explain the delay*: Be prepared to explain the delay in submitting the APR and FLA returns to the RBI, citing the reasons for the amendment and the AD's advice.

To avoid penalties:

1. *Submit the returns by December*: Submit the APR and FLA returns by December to avoid penalties, even if it means submitting them with a disclaimer.

2. *Follow up with the AD and RBI*: Follow up with the AD and RBI to ensure that the amendments are processed, and the returns are accepted.

Consult with your AD, a tax professional, or a chartered accountant to ensure compliance with RBI regulations and to address any specific concerns or questions you may have.