Here are some key points about Form 3CEB:
Applicability: Form 3CEB is required to be filed by any person who has entered into an international transaction or specified domestic transaction during the financial year. It is applicable to both Indian entities and foreign entities earning income from India.
Filing Deadline: The due date for filing Form 3CEB is usually on or before the 31st of October, immediately following the financial year in which the international transactions or specified domestic transactions have taken place.
Information Required: The form requires the reporting of various details related to international transactions or specified domestic transactions. This includes details about the parties involved, the nature and terms of the transactions, the method used for determining the arm’s length price, and financial data related to the transactions. It is not a mere form but an Audit by a Chartered Accountant on transfer prices.
Documentation: Along with filing Form 3CEB, taxpayers are also required to maintain extensive documentation related to their international transactions or specified domestic transactions. This documentation must be made available to tax authorities immediately upon request and is relied upon by the CA auditing to provide his opinion.
Penalties: Failure to file Form 3CEB or maintaining documentaiton or providing inaccurate information in the form can lead to penalties under the Income Tax Act.
Audit and Certification: Form 3CEB needs to be certified by a chartered accountant in practice. The chartered accountant is required to conduct an audit and ensure that the information provided in the form is correct and in compliance with the transfer pricing regulations.