Late Submission Fee (LSF) under FEMA– A Brief Summary

Oct 19 ,2023 / Complinova Team / RBI-Regulations


Late Submission Fee (LSF) under FEMA – A Brief Summary

 

Date: 19 October 2023  

Category Tagging: RBI Regulations

The Late Submission Fee (LSF) was introduced for reporting delays in Foreign Investment (FI), External Commercial Borrowings (ECBs) and Overseas Investment related transactions with effect from November 07, 2017, January 16, 2019 and August 22, 2022 respectively.

There were different methodologies existed for the calculation of LSF to be paid for various reporting delays. RBI, in September 2022, issued a notification to bring uniformity in imposition of LSF across functions.

Type of Reporting delays-

  1. LSF Amount shall be calculated at Rs. 7500/- per return for the following types of Reporting Delays –

  • 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

  1. LSF Amount shall be calculated at Rs. 7,500+(0.025% *amount involved in the delayed reporting* number of years of delay in submission rounded-upwards to the nearest month and expressed up to 2 decimal points) for the following types of reporting Delays –

  • Form 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

#

Particulars 

Amount (INR)

A

Amount of Investment in FDI

XX

B

Date of Remittance / Allotment whichever is earlier

DD-MM-YY

C

Due Date of Reporting

DD-MM-YY

D

Actual Date of Reporting

DD-MM-YY

E

Delays (no of months - rounded-up to next higher month)

= (D-C) Rounded-up

F

Delays (no of years - rounded-off to 2 decimal)

=E/12

 

 

 

 

LSF Amount 

=[7500 + (0.025% × A × F)]

Read RBI notification at: RBI LSF

 

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