Form 3CEAA - Due Date, Applicability, Requirement, And How To File Form 3CEAA Online

India introduced Country-by-Country reporting requirements to keep a check on all international transactions with non-residents and certain specified domestic transactions. All entities must furnish transaction reports in Form 3CEAA as per the compliances laid down in Section 92D of the Income Tax Act. This section lays down provisions covering transfer pricing activities and is to be read together with Rule 10(D) of the Income Tax Act. 

What is Form 3CEAA?

Form 3CEAA of the Income Tax Act is also known as the Master File. It is a record of all the international transactions an entity enters, and also some specified domestic transactions. The government introduced the rule to maintain the Master File in the year 2017. 

Form 3CEAA is one of those documents that any person who enters into international transactions or specified domestic transactions must furnish as per the rules of the Income Tax Act. An assessee shall furnish it as per provisions mentioned in Section 92D of this act. However, it is not to be read alone, as details of all other documents that are to be maintained and furnished are mentioned in rule 10D. 

Form 3CEAA Applicability

Form 3CEAA mainly has two parts, i.e. Part A and Part B. Both parts apply to entities when they meet different conditions. Let us take a look at both these parts in detail:

Part A

This part of the Master File comprises basic information about the relevant international group involved in transfer pricing activity. It shall include details like the name of the international group, entities involved in that group, their details like PAN and permanent address, etc. 

Part A of Form 3CEAA is to be filed by every entity that has entered into any international transaction, irrespective of any limits or threshold of the value. This helps the Indian government keep a record of such transactions. 

Part B

Part B of the Form 3CEAA does not apply to everyone. It is to provide in-depth details about the international group and all transactions undertaken. Only the following entities who meet the given two conditions shall file this form:

• The consolidated group revenue for the preceding accounting year exceeds Rs.500 crore.
• The total value of the international transactions conducted has exceeded Rs.50 crore for the present accounting year, or if there have been any international intangible property-related transactions, the value of such transactions exceeds Rs.10 crore.

Form 3CEAA Due Date

The due date for filing this form shall be the same as the due date for filing your income tax returns as per Section 139(1). Only for the year of introduction, i.e. FY 16-17, this due date was 31st March 2018. 

However, for all following years, the due date of Form 3CEAA is the same as the date of filing the income tax return for such entities. 

Form 3CEAA Requirements

Form 3CEAA has two parts; hence, both parts of this form require different information. Here is an overview:

Part A

Since Part A is for every person who meets the eligibility criteria of Section 92D, it covers mostly all basic information needed for record keeping. Any person filing this return shall have to furnish the following details:

• Name
• Address
• PAN or Aadhaar
• Name and address of the international group

Part B

This is a more elaborate section that is only for certain assessees that we have already discussed. Some of the information to be furnished in Part B includes:

• List of all entities part of the international group along with their address. 
• The legal status of the constituent entity and a complete detail on the ownership structure of the international group. 
• A description in writing explaining business of the international group during a particular accounting year. 
• The nature of their business.
• The main drivers for profit of the group.
• Description giving details of supply chain for the five largest services or products of the international group. 

In short, Part B of the form requires an assessee to fill in all details that give a complete and true idea of the international group, as well as the constituent assessees. 

Form 3CEAA Purpose

Every time an entity enters an international transaction or any specified domestic transaction, the Government of India expects to maintain a record of it. It helps them keep a check on Base Erosion and Profit Shifting (BEPS) to ensure international groups are entering transactions at arm’s length as if they were with any other entity. As per compliances mentioned in Section 92D, entities must maintain a Country-by-Country record of the same and a Master file in Form 3CEAA.

Who is Required to File Form 3CEAA?

Every person who enters an international transaction or any specified domestic transaction with an international group has to file Form 3CEAA. This form has two parts, where Part A is for any person who triggers this requirement. Part B, however, is only for specified persons who fulfil any of the following two conditions:

• Group revenue for the preceding accounting year, when consolidated, exceeds Rs.500 crore.
• Either of these two:
  • The total value of the international transactions conducted has exceeded Rs.50 crore for the present accounting year.
  • If there have been any international intangible property-related transactions, the value of such transactions exceeds Rs.10 crore.

How To File Form 3CEAA Online?

The following are the steps to file Form 3CEAA online:

Step 1: Login on the e-filing portal

 Step 2: On the dashboard, click ‘e-File’ > ‘Income tax forms’ > ‘File Income Tax Forms’

Step 3: Scroll down to select Form 3CEAA. Alternatively, enter Form 3CEAA in the search box. Click on ‘File now’ button to proceed.

Step 4: Select the Assessment Year for which you are filing the return. For eg: If you are filing taxes for the income earned in FY 2023-24, then select AY 2024-25. 

Step 5: After checking the documents required for filing the form click on 'Let's Get Started'.

Step 6: Fill all the necessary details and click on ‘Preview’

Step 7: After reviewing all the information, ‘Proceed’ to e-verify'. You can e-verify either through:

• Aadhaar OTP
• Digital Signature Certificate (DSC)
• Electronic Verification Code (EVC)

Step 8: After verification Click on 'Yes' to submit the Form.

Step 9: After successful e-Verification, a success message is displayed along with a Transaction ID and an Acknowledgement Receipt Number. Please keep a note of the Transaction ID and Acknowledgement number for future reference. You can also download the form and locate the acknowledgment number. 
To download the filed form, go to ‘e-File’ → 'Income Tax Forms' → 'View Filed Forms'.