Form 3CEB: Due Date, Applicability, How to File Form 3CEB Of Income Tax Act Online

According to Section 92A to Section 92F of the Income Tax Act of 1961, if a company engages in any domestic or foreign transactions with any associated enterprises, it must submit Form 3CEB of the Income Tax Act in accordance with transfer pricing regulations. It is mandatory to file an accountant's report for this form that has been prepared by an independent audit professional. 

Let’s examine some of the important aspects, such as Form 3CEB's due date and applicability. 

What is Transfer Pricing?

Transfer pricing represents the price at which one business/division charges its associated business/division for goods or services provided. Form 3CEB ensures these intercompany transfers are conducted at fair market prices to prevent transfer pricing manipulation for profit shifting and tax fraud. In other words, Form 3CEB shows the Indian government that your company has fairly priced goods and services involved in cross-entity transfers.

Form 3CEB Due Date for AY 2024-2025

The last date for filing Form 3CEB (AY 2024-2025) for Companies required to furnish a report under Section 92E of the IT Act is 31st October 2024.

Applicability of Form 3CEB

Form 3CEB is applicable to companies that engage in international and specified domestic transactions with any associated enterprise. Businesses have to file this form irrespective of the value of international transactions, but for domestic transactions, only if the value exceeds Rs. 20 crore in a fiscal year.

A thorough report from an independent chartered accountant is required from all businesses that engage in such deals.

The fee that one business charges its associated business for the goods and services it has provided is referred to as transfer pricing. Form 3CEB follows two conditions as set by transfer pricing regulations. These are:

• International transactions involving two or more associated firms, any or both of which can be foreign businesses; 
• Specified domestic transactions involving transfer pricing but not including international transactions. 

How to File Form 3CEB Online?

Form 3CEB can be filed online by following these easy steps: 

Step 1: You need to avail the services of a licensed Chartered Accountant (CA) who will audit the business transactions. Once you log in to your e-filing portal account, under the ‘Authorised Partners’ tab, select ‘My Chartered Account’ 

Step 2:  The taxpayer is requested to navigate to ‘e-File’ click on ‘Income Tax Forms’ and  ‘File Income Tax Forms’ and select Form 3CEB. The form can be assigned to CA by selecting CA Name, AY and Filing Type. 

Step 4: Once the form has been successfully assigned, the CA can find it in his/her work list in the 'For Your Action' section. He/she can either accept or reject the assignment. If the assigned CA rejects it, you must reassign the form.

Step 5: If the CA accepts the task, he will fill in all the necessary details in the form after proper assessment and auditing. 

Step 6: Once done, you can find the form uploaded by the CA in the Taxpayer's work list. You can click the 'For Your Action' button and find the form marked 'Pending for Acceptance'. You can either accept or reject it after reviewing the form. Once you approve it, Form 3CEB will be filed.

Form 3CEB of Income Tax Act - PDF Format

You can download Form 3 CEB in PDF format from the Income Tax India official website. This form comprises three parts - Part A, Part B and Part C. 

Let’s take a look at different parts of the Form 3CEB of the Income Tax Act:

Part A

Part A contains basic details that need to be filled up. 

Part B

In Part B, there’s a lot of information related to international transactions must be provided. 

This includes information about the associated enterprises with whom the business has entered into international transactions, particulars in respect of transactions in tangible and intangible property, details of the services provided and money lent or borrowed, particulars in respect of transactions in the nature of the guarantee, information related to international transactions of marketable securities, equity shares, debentures, preference shares, etc.

Part C

Part C of the form is solely dedicated to specified domestic transactions. While Part B focuses on international transactions, Part C focuses on engagements with domestic enterprises. 

Click here to view/download Form 3CEB.

Final Word

As per Section 92E of the Income Tax Act, which relates to international transactions and specified domestic transactions, filing Form 3CEB is mandatory for companies who are engaged in foreign or domestic business with associated enterprises. Taxpayers must strictly follow the requirements listed in Form 3CEB; otherwise, there are penalty rules which might be enforced.