TaxTMI 
TaxTMI 
Procedure for compounding offence under FEMA Act, 1999
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....d for within the specified period, the application for compounding shall be liable to be returned. 5.3 The following factors, which are only indicative, shall be taken into consideration for the purpose of passing compounding order and determining amount on payment of which contravention shall be compounded: * Undue gains i.e., the amount of gain of unfair advantage, wherever quantifiable, made as a result of the contravention (or) economic benefits accruing to the contravener from delayed compliance or compliance avoided; * the amount of loss caused to any authority/ exchequer as a result of the contravention; * the repetitive nature of the contravention, the track record and/or history of non- compliance of the contravener; * con....
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....50,000 per year 10 crore or more and below 100 Crore 100,000 per year 100 crores and above 200,000 per year v. Reporting contraventions by LO/ BO/ PO As above, subject to ceiling of INR 2 lakhs. In case of Project Office, the amount imposed shall be calculated on 10% of total project cost. 2] Submission of AAC/ APR/ FLAR/ Share certificate Non-submission/ delayed submission of * APR/ share certificates (FEMA 120/ FEMA 400) or * AAC (FEMA 22/ FEMA 22(R)) or * FCGPR (B) or FLA Returns - FEMA 20 / FEMA 20 (R) / FEMA 120/ FEMA 395/ FEMA 400 INR 10,000 per AAC/ APR/ FCGPR (B) / FLA Return delayed. Delayed/Non receipt of share certificate - INR.10000/- per year, the total amount being subject to ceiling of 300% of the amount inv....
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....e of guarantees for raising loans which are invested back into India, the amount imposed may be trebled. 5] All other non-reporting contraventions Fixed Amount: INR 50,000/- (applied once for each regulation/ rule contravened, in a compounding application) plus Variable amount: Duration of contravention Variable amount that may be imposed as percentage of "amount under contravention" Less than 1 year 0.50% 1 year and above but less than 2 years 0.55% 2 years and above but less than 3 years 0.60% 3 years and above but less than 4 years 0.65% 4 years and above but less than 5 years 0.70% 5 years or more 0.75% II. The above amounts are presently subject to the following provisos, viz. i. The compounding amount pa....