What is Form 3CEAB: Applicability and Purpose

Each unit of an international group operating in India must maintain basic group information, regardless of whether it has engaged in any international transactions. These regulatory requirements are provided under section 92D of the Income Tax Act. 

When there are more than one unit of an international group operating in India, then any one of those entities can comply with the requirements of section 92D, by intimation to the appropriate income tax authority. 

Form 3CEAB is an intimation submitted by the constituent of an international entity every year to the department, in compliance of the aforesaid provisions. This article explains in detail, the applicability,  contents, format and the steps to file form 3CEAB.

What is Form 3CEAB and its Applicability?

• For international groups operating in India with multiple constituent entities, Form 3CEAB offers a valuable solution. 
• It allows the group to designate a single constituent entity to file the mandatory Form 3CEAA with the tax authorities. 
• This simplifies the process by eliminating the need for each entity to file separately.  
• To utilize this option, the designated entity must inform the Joint Commissioner via Form 3CEAB at least 30 days before the Form 3CEAA due date. 

Meaning of “Constituent entity”

Constituent entity means:

1. Any separate entity of an international group that is either included in the group's consolidated financial statement for reporting purposes or could be included if the equity shares of the international group were listed on a stock exchange.
2.  Any such entity that is excluded from the consolidated financial statement of the international group solely on the basis of size or materiality.
3. Any permanent establishment of any separate business entity of the international group included in (a) or (b) if that business unit creates its own financial statement for reporting, following rules, tax purposes, or internal management control.

Meaning of “International Group”

"International group" means a parent company and all the entities controlled by it and includes:

1. Two or more enterprises which are resident of different countries or territories; or
2. An enterprise residing in one country or territory that conducts business activities through permanent establishments situated in other countries or territories.

Contents of Form 3CEAB

The data required while filing Form 3CEAB is as follows:

• Name, address and PAN of the designated constituent entity. 
• Name of the international group.
• Name and address details of the international group’s parent entity. 
• The Country of residence of the parent entity.
• Accounting year for which the report is being submitted. 

As per IT rules, applicable entities are to submit this form each year. The due date for filing Form 3CEAB is 31 October. 

Form 3CEAB PDF download