CS Parul Dadhich (Practising CS) (35 Points)
23 March 2017A private limited Co. has outsourced its IT business in US and received benefits and paid for such services in the foreign currency. Do the company need to file FLA return of RBI as it is for disclosure of FDIs done or received by any company. Or is there any other compliance the company needs to fulfill for FEMA regulations. as this is a case of import and export of services.
Thanks
Smruti
(CS&CA)
(79 Points)
Replied 23 March 2017
Hi,
FLA Return needs to be filed when, Company has either received FDI or has made FDI abroad, that means investment has to be made in other company, and company shall hold foreign Assets or Liabilities in their Balance Sheets. In your case your company has not invested in other company i.e they have not taken any shares of the other company, so no need to file FLA return.
CS Parul Dadhich
(Practising CS)
(35 Points)
Replied 23 March 2017
Yes thanks for replying....i am just curious if they need to file any other declaration form for receipt of foreign income under FEMA rules as whole of their revenue is generated from foreign outsourcing of IT services.
CAclubindia
