Reserve Bank of India (“RBI”) vide earlier circulars dated November 07, 2017[1]; January 16, 2019[2]; and August 22, 2022[3], introduced late submission fees (“LSF”) for reporting delays in foreign investment (“FI”), external commercial borrowings (“ECB”) and overseas investment-related transactions respectively. Recently, RBI vide circular dated September 30, 2022, uniformed the imposition of LSF across these 3 functions and the facility for the same shall be available up to 3 years from the due date of reporting or submission. Pursuant to this circular, with immediate effect, the following matrix shall be utilized to calculate the LSF, wherever applicable –
Sr. No. | Type of reporting delays | LSF Amount (INR) |
1. | Form ODI Part-II/ APR, FCGPR (B), FLA Returns, Form OPI, evidence of investment, or any other return which does not capture flows or any other periodical reporting. | 7500 |
2. | FC-GPR, FCTRS, Form ESOP, Form LLP(I), Form LLP(II), Form CN, Form DI, Form InVi, Form ODI-Part I, Form ODI-Part III, Form FC, Form ECB, Form ECB-2, Revised Form ECB or any other return which captures flows or returns which capture reporting of non-fund transactions or any other transactional reporting. | [7500 + (0.025% × A[4]× n[5]] |
Further, where advice has been issued for payment of LSF and such LSF is not paid within 30 days, such advice shall be considered null and void and any LSF received beyond this period shall not be accepted.
If the applicant subsequently approaches for payment of LSF for the same delayed reporting, the date of receipt of such application shall be treated as the reference date for the purpose of calculation of “n”.
In case a person responsible for any submission or filing under the provisions of FEMA, neither makes such submission or filing within the specified time nor makes such submission
[1] N20RB29574DA17294D5C93E4951B2FC86666.PDF (rbi.org.in) [2] NT1096DD257F73C9F4BD280F9C2A2CAD084F1.PDF (rbi.org.in) [3] FEMA400E3410E8B6F384DF982443E53E6688627.PDF (rbi.org.in) [4] The amount involved in the delayed reporting shall be calculated per return. However, for any number of Form ECB-2 returns, delayed submission for each LRN will be treated as one instance for the fixed component. Further, ‘A’ for any ECB-2 return will be the gross inflow or outflow (including interest and other charges), whichever is more. Maximum LSF amount will be limited to 100% of ‘A’ and will be rounded upwards to the nearest hundred. [5] The Number of years of delay in submission rounded upwards to the nearest month and expressed up to 2 decimal points or filing along with LSF, such person shall be liable for penal action under the provisions of FEMA, 1999.
تعليقات