ANNUAL COMPLIANCE LIASION OFFICE
(10th December 2023)
SHORT SUMMARY:
The author will cover the "Annual
Compliance of Liaison Office" in this column. A Liaison office
established in India required to do some compliances on annual basis.
'Liaison Office' means
a place of business to act as a channel of communication between the principal
place of business or Head Office or by whatever name called and entities in
India but which does not undertake any commercial /trading/ industrial
activity, directly or indirectly, and maintains itself out of inward
remittances received from abroad through normal banking channel.
Compliances:
After the establishment
of Liaison Office, its required to comply with
compliances of following Acts:
i. Compliance under Income
Tax Act, 1961
ii.
Compliance under Goods and Services Tax Act,
2017
iii.
Compliance under FEMA Regulations
iv.
Compliance under Companies Act, 2013 read with
allied Rules.
A. ANNUAL COMPLIANCE UNDER
INCOME TAX ACT, GST ACT
i. Preparation of Books of Accounts of Company
ii.
Preparation & Filing of Income Tax Return
iii.
Assessment & Payment of Advance Tax
iv.
Assessment & Filng TDS Return
v.
Filing of Monthly/Quarterly GST Return
vi.
Filing of Annual GST Reurn
B. ANNUAL COMPLIANCE UNDER
RBI
The following are the
annual compliance procedures to be complied with by a BO/LO/PO:
Submission of Annual
Activity Certificate (AAC)
An annual activity certificate (AAC) is a certificate given by a
Chartered Accountant to the effect that the activities undertaken by the
BO/PO/LO during the year have been specifically permitted by the Reserve Bank
vide its approval letter.
a)
The CA should also
certify in the AAC that the BO/PO/LO has complied with the all the terms and
conditions specified in the approval letter given by RBI.
b)
AAC as at
31st March, along with the audited financial statements including receipt
and payment account should be submitted on or before
30th September of every year.
c)
In case the annual
accounts of the BO are finalized on any date other than March 31st, the AAC
along with the audited Balance sheet may be submitted within 6
months from the due date of the Balance sheet.
d)
In case of BO, the
AAC shall be submitted to the designated AD Category -I bank as well as to the
Director General of Income Tax (International Taxation), New Delhi
C. ANNUAL COMPLIANCE UNDER
COMPANY LAW
I.
Filing
of Annual return with the ROC
A foreign company is required to file its annual return to the
Registrar of Companies in e-Form FC-4 within a period of 60 days from
the close of financial year.
Mandatory Attachment for FC-4:
ü Details of Promoters, Directors and Key managerial personnel and
changes therein since close of previous financial year
ü Details of directors and key managerial personnel and their
remuneration
ü Details of the meeting of the members or class thereof, board
and its various committees along with attendance details
ü Particulars of members and debenture holders along with changes
therein since the close of previous financial year
ü Particulars of Holding, subsidiary and associate companies and
firms.
ü Details of Penalties / punishment/ Compounding of offences, if
any
II. Filing of Financial statements,
the ROC:
A foreign company is required to file its audited financial
statements in e-Form FC-3 with the Registrar of Companies within a period
of 6 months of the close of the financial year.
Mandatory Attachment for FC-3:
ü Latest Financial statements of the parent foreign company.
ü Latest consolidated financial statements of the parent foreign
company.
ü Auditor Report
ü RPT Disclosures
Author – CS
Divesh Goyal, GOYAL DIVESH & ASSOCIATES Company Secretary in Practice from Delhi
and can be contacted at csdiveshgoyal@gmail.com).
Disclaimer: The entire
contents of this document have been prepared based on relevant provisions and
as per the information existing at the time of the preparation. Although care
has been taken to ensure the accuracy, completeness, and reliability of the
information provided, I assume no responsibility, therefore. Users of this
information are expected to refer to the relevant existing provisions of
applicable Laws. The user of the information agrees that the information is not
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