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

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

Updated on: 23 May, 2024 06:36 PM

India implemented Country-by-Country reporting regulations to monitor international transactions and specific domestic transactions closely. All entities are obligated to provide transaction reports using Form 3CEAA, as per the rules outlined in Section 92D of the Income Tax Act. This article explains the provisions concerning Form 3CEAA, its applicability, due date, purpose, and requirements.

Contents

What is Form 3CEAA?

The Master File, also known as Form 3CEAA under the Income Tax Act, is a comprehensive record of an entity's international and specified domestic transactions. The government made it compulsory to maintain the Master File in 2017 to ensure transparency and compliance.

Under Section 92D of the Income Tax Act, any individual or entity engaged in international or specified domestic transactions must provide Form 3CEAA as per the rules of the Income Tax Act.

What is the Applicability of Form 3CEAA?

Form 3CEAA consists of 2 parts - Part A and Part B

Both the parts are explained in detail below -

Part A

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

Every entity entering an international transaction must file Part A of Form 3CEAA. This is important as it helps the Indian government maintain a record of such transactions.

Part B

Part B of Form 3CEAA applies only to some people. This part requires you to furnish the details of the international group and all the transactions undertaken.

Entities meeting the following conditions are required to file Part B of Form 3CEAA -

  • The consolidated revenue of a group for the previous accounting year exceeds Rs.500 crores.
  • The total value of the international transactions conducted exceeds Rs.50 crores for the current accounting year. If there are any international intangible property-related transactions, the value of these transactions exceeds Rs.10 crores.

What is the Due Date of Form 3CEAA?

The due date for filing Form 3CEAA is the same as the due date for filing your income tax return under section 139(1). Therefore, the due date for filing 3CEAA depends on the due date applicable for filing ITR.

What is the Purpose of Form 3CEAA?

Every time an entity enters into a specified domestic transaction or an international transaction, the Government of India expects it to maintain a record of that transaction. This helps them check the Base Erosion and Profit Shifting. As per the requirements of section 92D, entities are required to maintain a country-by-country record of the transactions entered into and a Master File in Form 3CEAA.

What are the Requirements of Form 3CEAA?

Both parts of Form 3CEAA require you to furnish different information. Below are the details of the requirements of Form 3CEAA -

Part A is relevant for individuals who meet the eligibility criteria under section 92D. It covers all the basic information that is required for keeping a record of the transactions entered into. Any individual filing Form 3CEAA has to fill in the following details -

Part A

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

Part B

  • List of all the entities that are part of the international group and their address.
  • The legal status of the entity and the details of the ownership structure of the international group.
  • A written description explaining the business of the international group during the relevant accounting year.
  • The nature of their business
  • The main drivers of the group’s profit.
  • Description of the details of the supply chain for the 5 largest products or services of the international group.

Who is Required to File Form 3CEAA?

Every individual or entity that enters into an international transaction or a specified domestic transaction with an international group is required to file Form 3CEAA. Part A of this Form has to be filed only by a person who has entered into any such transaction as mentioned above. Whereas Part B of this Form is applicable to those who fulfill any of the below-mentioned conditions -

  1. Group revenue for the previous accounting year exceeds Rs.500 crore upon consolidation.
  2. Either of these two conditions
    • The total value of international transactions exceeds Rs.50 crores in the current accounting year.
    • If there is any international intangible property-related transactions and the value of the transaction exceeds Rs.10 crores.

So, if you have entered into an international transaction or a specified financial transaction in the previous financial year, you must furnish Form 3CEAA by the ITR filing due date. If you are still unsure if you are required to file Form 3CEAA or not, you can consider seeking professional help. Contact our tax experts and get all your tax-related queries answered. Get Tax Consultation Now!

Frequently Asked Questions

Q- What is the requirement to file form 3CEAA?

Either of the following conditions must be met for Part B of the form:

  • The consolidated group revenue for the previous accounting year exceeds Rs. 500 crore.
  • The total value of international transactions exceeds Rs. 50 crores in the current accounting year.
  • If there are any international intangible property-related transactions and the value of the transaction exceeds Rs. 10 crores.

Q- What is the applicability of form 3CEA?

Form No. 3CEA, a report prepared by a Chartered Accountant (CA), must be submitted in the event of a slump sale under section 50B. This form is to be filed electronically, requiring a Digital Signature Certificate (DSC). It must be submitted along with the income tax return, and the deadline for filing aligns with the due date specified under section 139(1) of the Income Tax Act for the assessee's income tax return.

Q- How do I file a 3CEAA form?

The report in Form 3CEAA must be provided by the due date for submitting the income tax return as outlined in section 139(1). It should include the following information:

  • Name, address, and PAN of the assessee.
  • Name and address of the international group to which the assessee belongs.
  • The accounting year for which the report is being submitted.

Q- What is the limit for form 3CEAA?

This form comprises two parts. Part A is applicable to any individual or entity meeting the requirements, while Part B is specifically designated for those who meet either of the following conditions:

The consolidated group revenue for the preceding accounting year exceeds Rs. 500 crore.

Q- What is a slump sale?

A slump sale involves the transfer of either a portion or the entirety of a business to another entity in exchange for a lump sum payment. In this type of transaction, the buyer acquires ownership of various assets, liabilities, intellectual property, contracts, employees, and debtors from the seller.

Q- What is the penalty for form 3CEAA?

If the information requested by the prescribed authority to verify the accuracy of the Country-by-Country (CbC) report is not provided within the stipulated time mentioned in the notice, the reporting entity will face a penalty of Rs 5,000 per day after the specified period expires.

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CA Abhishek Soni
CA Abhishek Soni

Abhishek Soni is a Chartered Accountant by profession & entrepreneur by passion. He is the co-founder & CEO of Tax2Win.in. Tax2win is amongst the top 25 emerging startups of Asia and authorized ERI by the Income Tax Department. In the past, he worked in EY and comes with wide industry experience from telecom, retail to manufacturing to entertainment where he has handled various national and international assignments.