Form 3CEB: Applicability, Due Date, How to File Form 3CEB Online
- Dipali Waghmode
- 4 days ago
- 6 min read
Under sections 92A to 92F of the Income Tax Act, the corporation essentially completes Form 3CEB in conjunction with Form 3CD in accordance with transfer pricing requirements. Transfer Pricing is the main topic of these sections. Companies that carry out specific domestic and international transactions with any associate enterprise are required to file Form 3CEB. All foreign transactions as well as specific domestic transactions with related businesses are fully detailed in Form 3CEB. Let us discuss Form 3CEB in this article.
Table of Contents
What is Form 3CEB?
Companies that engage in specific domestic or foreign transactions with related businesses are required to file Form 3CEB, a tax form. The form functions as a thorough transfer pricing report and is needed under Section 92E of the Income Tax Act of 1961. Form 3CEB's main goal is to prevent tax avoidance through profit shifting or transaction value manipulation by ensuring that cross-border and specific domestic transactions are carried out at arm's length pricing.
Components of Form 3CEB
Section A: General Information (Includes Clauses 01 through 09): It contains information on the assessee, such as name, address, PAN, business type, and the aggregate value of international transactions or SDT according to the books of accounts.
Section B: Details of International Transactions (Includes Clauses 10–20): It contains a list of the AE(s) that the assessee has transacted with internationally, along with a brief business description of the AE(s) and specifics (amount, type, best method used for benchmarking, etc.) pertaining to the international transaction that took place, as well as additional information based on the type of transaction that occurred during the year.
Part C: Specific domestic transactions (Contains Clauses 21 to 25): This section contains information on SDTs that took place under sections 80A, 80IA(8), 80IA(10), 115 BAB, and 115 BAE when the assessee's total transactions for the year exceed Rs. 20 crores.
What are Specified Domestic Transactions?
If certain requirements are met, transactions between related companies in India may be categorized as specified domestic transactions. These standards are:
Domestic in nature: A foreign entity shouldn't be involved in the transaction.
Section 92BA Covered: The type of transaction fits into the categories listed in this section of the 1961 Income-tax Act. This could involve offering services, lending or borrowing money between family members, or selling, buying, or leasing assets.
Exceeds the threshold: The total value of such transactions with linked parties during a financial year surpasses Rs. 20 crore (starting from the assessment year 2016-17).
A transaction is subject to compliance requirements equivalent to those for international transactions if it is designated as a specified domestic transaction.
What are International Transactions?
An international transaction occurs when at least one of the connected firms (associated enterprises) is a non-resident company in another country. These exchanges may involve:
Purchase, sale, or rental of tangible or intangible assets (such as real estate, patents, or copyrights)
Service provision (such as marketing or consultancy)
Taking out a loan or borrowing funds
Anything else that has an impact on the firms' assets, income, losses, or profits
International transactions can also involve agreements between related companies about how to split the expenses of joint ventures, including creating a new product or promoting in a new market.
What is Transfer Pricing?
The price that one company or division charges another company or division for the same goods or services is known as transfer pricing. Aimed at curbing transfer pricing manipulation for profit shifting and tax evasion, Form 3CEB guarantees that these intercompany transfers are done at fair market values. Stated differently, the Indian government can see from Form 3CEB that your business offers reasonably priced goods and services that are involved in cross-entity transfers.
Applicability of Form 3CEB
Companies that engage in certain domestic and international transactions with any affiliated firm must use Form 3CEB. Businesses must submit this document regardless of the value of their foreign transactions. Filing is only required for domestic transactions, though, if the total value in a fiscal year exceeds Rs. 20 crore. All businesses involved in such transactions must obtain a comprehensive report from an independent certified accountant. The fee that one company charges another for the goods and services that are supplied is known as transfer pricing. Two requirements specified by transfer pricing regulations are met by Form 3CEB:
Any transaction involving two or more related businesses, one or both of which are foreign, is considered an international transaction.
Specifically, domestic transactions are those related to transfer pricing that do not fall under the category of international transactions. (Transfer pricing is the amount charged by one from another for the products and services that the other business has provided.)
Reporting Requirements in Form 3CEB
In addition to the total value of their overseas transactions, taxpayers are required to submit general personal information.
Information on foreign transactions made by taxpayers during the fiscal year, which runs from April 1 to March 3, must be provided.
Information regarding the specific domestic transactions that were carried out throughout the fiscal year must be provided by taxpayers.
Due Date for Filing Form 3CEB
For Assessment Year 2025-26, the deadline for filing Form 3CEB is October 31, 2025. Form 3CEB must be filed by the end of the fiscal year in which the transaction occurred, or before. Failure to file by the deadline may result in penalties under the Income Tax Act, so prompt compliance is essential for businesses.
Steps to File Form 3CEB Online
Step 1: You must hire a certified chartered accountant (CA) to audit your company's operations. Choose "My Chartered Account" from the "Authorized Partners" option after logging into your e-filing portal account.
Step 2: The taxpayer should go to "e-File," click "Income Tax Forms," and then click "File Income Tax Forms." Then, choose Form 3CEB. By choosing CA Name, AY, and Filing Type, the form can be allocated to CA.
Step 4: The CA can locate the form in the 'For Your Action' part of his or her work list when it has been successfully assigned. He or she has the option to accept or refuse the task. You have to reassign the form if the designated CA rejects it.
Step 5: Following a thorough evaluation and audit, the CA will complete the form with all the required information if he accepts the assignment.
Step 6: After completing the form, locate it in the Taxpayer's work list that the CA uploaded. The 'Pending for Acceptance' form is available when you select the 'For Your Action' button. After looking over the form, you can decide whether to accept it or not. Form 3CEB will be filed after you give your approval.
Penalties for Non-Compliance
According to Section 271BA of the Income Tax Act, noncompliance with Form 3CEB filing requirements can result in serious penalties:
Late Filing Penalty: Rs. 1,00,000 for failing to file Form 3CEB by the deadline.
Incorrect or Incomplete Filing: Incorrect forms may be rejected by the Income Tax Department, and they may also impose additional penalties.
Audit and Scrutiny: Inaccurate documentation may result in transfer pricing audits, which postpone tax assessments; and timely and accurate filing of Form 3CEB helps businesses avoid penalties and guarantees tax compliance.
Conclusion
Companies that do domestic or international business with affiliated enterprises are required to file Form 3CEB in accordance with Section 92E of the Income Tax Act, which deals with international transactions and specific domestic transactions. The conditions outlined in Form 3CEB must be adhered to by taxpayers; otherwise, penalties may be imposed.
FAQ
Q1. Is Form 3CEB a tax audit report?
Yes, all entities that have engaged in certain domestic or international transactions must seek and provide an audit report in Form 3CEB from a chartered accountant.
Q2. What is the procedure to approve Form 3CEB?
The Taxpayer's Worklist's "For your action" tab will provide access to the form that the chartered accountant (CA) uploaded. Form 3CEB might be approved or rejected by the taxpayer. The filing procedure is considered finished once the taxpayer has approved and verified the form.
Q3. What are the reporting requirements under Form 3CEB?
Form 3CEB must include the following information:
The assessee's basic information and the total value of all international transactions.
Information on foreign transactions during the course of a fiscal year.
Information on specific domestic transactions completed during a fiscal year.
Q4. What is the penalty for not furnishing form 3CEB?
Entities that fail to file the Chartered Accountant (CA) report in accordance with Section 92E are subject to a penalty of Rs. 1,00,000.
Q5. Are Limited Liability Partnerships (LLPs) subject to Form 3CEB?
Yes, an LLP is required to submit Form 3CEB if it conducts certain domestic or overseas transactions with related businesses. Companies and limited liability partnerships are subject to the same compliance requirements under transfer pricing laws.
Q6. Can a business make changes to Form 3CEB after it has been submitted?
Yes, if mistakes or omissions are found, a business may amend Form 3CEB. Revisions must be justified, though, and tax authorities may examine them closely, particularly if they have an effect on transfer pricing estimates.
Q7. Does Form 3CEB filing require supporting documentation?
Yes, companies are required to keep transfer pricing records that include pricing strategies, similar transactions, and agreements; these records are necessary for audits and must be submitted upon request by the tax authorities.
Q8. Can the tax authorities reject the Form 3CEB filing?
If the tax authorities discover inconsistencies, missing information, or inaccurate transaction reporting, they may require additional documents or further investigation to support their transfer pricing policies.
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