RBI has the power to impose penalty for non-filing of FLA Annual return on Foreign Liabilities and Assets- UNDER FEMA

RBI has the power to impose penalty for non-filing of FLA Annual return on Foreign Liabilities and Assets- UNDER FEMA

Annual return on Foreign Liabilities and Assets has been notified under FEMA 1999 and it is required to be submitted by all the India resident companies which have received FDI and/ or made overseas investment in any of the previous year(s), including current year by July 15 every year. 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.

Whether non-filing of earlier years also attract penalty?

Yes. But, it is advisable to file the FLA return this Year and this will cover up what ever you have omitted to declare last years.

Whether RBI has levied any penalty for filing of FLA on Companies int?

There is no clear cut answer or statistics available on the subject and quantum of fine is at the discretionary of the RBI .