What is late submission fees (LSF) under FEMA as provided by the RBI?
LSF is simple process of paying a prescribed late fee to regularise reporting delays of various complianes applicable under the FEMA such as delay in reporting of Form ODI Part-II/ APR, FCGPR (B), FLA Returns, Form OPI, 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.
LSF payment is an additional facility for regularizing reporting delays without undergoing the lenghthy compounding procedure. LSF is voluntary and advisable. However, reporting party may still opt for compounding by not paying LSF.
What is the process to LSF?
Belated reporting or cmpliances received by the AD Bank are forwarded to the RBI. The RBI shall then condone the delay and issue a conditional acknowledgment subject to payment of LSF within a stipulated timeframe.
LSF is levied as per the computation matrix. Final acknowledgment of reporting shall be issued only upon payment of LSF by the reporting party.
LSF is not refundable.
LSF Matrix
Type of Reporting delays |
LSF in Rs |
· 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 |
Rs. 7,500/- |
· 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 |
[ Rs. 7,500/- + (0.025% × A × n) ]
|
Notes:
Concluding Remarks:
LSF is business friendly approach which bypass the lenghthy process of compounding under the FEMA. This initiative can be viewed from the perspective of ease of doing business.