Form 3CEB

What is Form 3CEB?

Under transfer pricing regulations in India, companies must file Form 3CEB if they've conducted specific business transactions with associated enterprises. This form is filed alongside Form 3CD, which details various business aspects and transactions (Sections 92A to 92F of the Income Tax Act, 1961). A chartered accountant prepares a report to accompany Form 3CEB.

Form 3CEB Due Date for AY 2024-2025

Note: The provided content discusses a previous due date. Due dates can change so it is advisable to consult a reliable source for the most current information.

Applicability of Form 3CEB

This form applies to businesses that have engaged in:

International transactions: These occur between two or more associated enterprises, where either or both can be foreign businesses. Transactions include sales, leases, services provided, loans, or any other activity impacting profits, income, or assets. There must also be a mutual agreement between the enterprises regarding costs, benefits, or services provided.
Specified domestic transactions: These involve transfer pricing but are not international. They must meet specific criteria outlined in Section 92BA of the Income Tax Act and exceed a threshold of INR 200 million (from assessment year 2016-17).
 

What Information Is Required to be Furnished in Form 3CEB?

Form 3CEB requires details on:

Basic taxpayer information: This includes general company details and the total value of international transactions.
International transactions: Details of all international transactions undertaken during the financial year (April 1 to March 31).
Specified domestic transactions: Details of all specified domestic transactions undertaken during the financial year.
 

How to File Form 3CEB Online?

1. Engage a Chartered Accountant: A licensed CA will examine your business transactions and prepare the report.
2. Assign the CA in the e-filing portal: Log in to your e-filing portal account and designate a CA you've authorized.
3. Assign Form 3CEB to the CA: Select the CA, filing type, and assessment year.
4. CA review and completion: The CA will receive the form, review it, and fill in the necessary details.
5. Taxpayer review and approval: Once uploaded by the CA, you can review the form and approve it for filing.

Form 3CEB in PDF Format: You can download a PDF copy of Form 3CEB from the Income Tax India official website. The form consists of three parts:

• Part A: Basic details
• Part B: International transactions
• Part C: Specified domestic transactions
   

Penalties for Non-Filing or Late Filing of Form 3CEB

Penalties apply for non-compliance with Form 3CEB filing requirements:

Failure to furnish the report: Penalty of minimum INR 100,000.
Insufficient information: Fine of 2% of the transaction value.
Incorrect information: Fine of 2% of the transaction value.
 

Conclusion

Companies engaged in foreign or domestic business with associated enterprises must file Form 3CEB as per Section 92E of the Income Tax Act. It's crucial to comply with the requirements to avoid penalties.