This document provides information about the Foreign Liabilities and Assets (FLA) Annual Return that must be filed under the Foreign Exchange Management Act (FEMA) by Indian companies and entities that have received foreign direct investment or made overseas investments. It outlines who must file an FLA return, the exemptions, the due date of July 15th (extended to July 31st in 2019), penalties for non-compliance, and the new online filing process through the Foreign Liabilities and Assets Information Reporting (FLAIR) system introduced by the Reserve Bank of India.

1. ForeignLiabilitiesandAssetsAnnualReturn
(FLAReturn)
PRESENTEDBY,
M.P.GLADIUSPAUL

2. What is FLA
• FLA (Foreign Liabilities and Asset) Return under FEMA (Foreign Exchange
and Management Act, 1999) is Annual Return required to be submitted by all
the India resident companies, Partnership firms, SEBI registered Alternative
Investment Funds (AIFs), Public Private Partnerships (PPP), Branches or
Trustees which have received FDI and/ or made overseas investment in any
of the previous year(s), including current year.(July 15 every year).

3. Who needs to file FLA Annual Return?
• The regulation under FEMA, 1999 requires any company who has either made ODI or
received FDI, to file the FLA annual return. The companies have to report the current
financial year’s FLA as well as the previous year(s) assets and liabilities. In the case where a
company does not have any foreign assets or liabilities for the current year but has
outstanding FDI or ODI from the previous year(s), it must file the FLA annual return
indicating their outstanding assets or liabilities.
• The FEMA regulations also require partnership firms to file FLA annual return if they have
received FDI or made ODI. In the case of partnership firms, the RBI will issue a dummy
CIN upon its request which will be used only for the filing of FLA annual return. In case a
dummy CIN has already been issued, the partnership firm will use the same for the filing of
the FLA return.

4. Companies exempted from filing FLA
return
• Companies that have only issued shares on a non-repatriable basis to the
non-residents of India are exempt from filing FLA return.
• 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.
• 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.

5. Due Date for FLA
• FLA is required to be submitted by July 15 every year. In case FLA filed on
the basis of provisional accounts. In case there is variation in provisional and
audited financials, a revised FLA is to be filed based on audited accounts
before September end.
• In view of the recent change in reporting platform for submission of FLA
return, the last date for filing the FLA return for 2018-19 has been extended
to July 31, 2019 for convenience of reporting this year.

6. Non Compliance
• 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. The
penalty as prescribed under the FEMA is “THRICE” the sum involved in
contravention or Rs. 2 lakh if the offence is non-quantifiable and if the
contravention is continuing every day, then Rs. Five Thousand for every day
after the first day during which the contravention continues.

7. Filing of FLA return
• With the objective to enhance the security-level in data submission and
further improve the data quality, the previous email-based reporting system
for submission of the FLA return is replaced with the online reporting
portal (web-based system).
• Foreign Liabilities and Assets Information Reporting (FLAIR)system has
been introduced by RBI via recent notification dated June 28, 2019

9. Four section for filling FLA online form
• Section 1 – Basic details
• Section 2 – Financial details
• Section 3 – Foreign investment (investment made in India)
• Section 4 – Foreign assets ( investment made in aboard)
C:UsersDellDownloadsFormat_Fla_Form (1).pdf

10. Filled form
• C:UsersDellDownloadsFLA_ONLINE_FORM.pdf
THANKYOU!!!!!