BEPS CbyC and Master

File Compliance
24th Amendment Rules,2017
Forms to be filed

 Form 3CEAA
 Form 3CEAB
 Form 3CEAC
 Form 3CEAD
 Form 3CEAE
Now we discuss about form 3CEAA:

Form Form Form

3CEAA 3CEAB 3CEAC

Form Form
3CEAD 3CEAE
 Form 3CEAA
(Report to be furnish under sub-section (4) of section 92D of the Income
Tax Act, 1961 read with rule 10DA of Income Tax Rules,1962)
Parts of form 3CEAA and their applicability:

 Part A : For every entity having international transaction during the year.

 Part B : For an Entity having a international transaction and fulfilling two

conditions:
A) Consolidated group revenue is more then ` 5,000 Millions.
AND
B) (i) Value of international transactions exceed ` 500 millions.
OR
(ii) Value of sale, transfer, lease or use of intangible property is
more then ` 100 Millions.
To whom form 3CEAA furnished .?

Both Part A and Part B are furnished to “Director General of

Income Tax (Risk Assessment)” {DGIT(RA)}
Cut off date to file Form 3CEAA to
DGIT(RA):
 Wording of Law:
 Report in form 3CEAA shall be furnished to DGIT(RA) on or before the due
date for furnishing the return of income as specified in section 139(1).
 Provided in case of FY 2016-17 the due date for filling this form is 31st
March,2018.

 Our Comments:
 Last date for filling CIT return is 30th November, i.e. cut off date for filling
form 3CEAA shall be also 30th November and as we know the first
implementation year for this provision is FY 2016-17 and date specified under
section 139(1) has passed. So CBDT inserted proviso in section and decide cut
off date 31st march,2018 for filling form 3CEAA for FY 2016-17.
 Above cut off date is applicable for both part A and part B.
Information required in form
3CEAA at the time of filliing
Information required in form 3CEAA
(Part A):
 Name, address and PAN of assessee.
 Name and address of International group of which assessee is a constituent
entity.
 Accounting year for which report is being submitted.
 Number of constituent entities of the international group operating in India.
 Name, address and PAN of all other constituents entities operating in India.
Information required in form 3CEAA
(Part B):
 List (name and address) of all entities of the international group.
 Chart of ownership structure of all entities of international group.
 Nature and profit drivers of businesses.
 Description of supply chain for largest five product or services of the
international group in the term of revenue, and other product or service having
more then 5% of the consolidated group revenue.
 A list and brief discriptioin of importantat service arrangmenrt made amoung
members of the international group except R&D services.
 TP Policy for transactions made between members entities of group.
 List of major geographical markets of international group.
to be Continue….
Information required in form 3CEAA
(Part B): (continued…)
 List of Functions, assets and risk analysis of the constituent entities of group
which contribute more then 10% of revenue or assets or profit of group.
 Description of important business restructuring, acquisitions and divestments
transactions.
 Description of the overall strategy of the international group for
development, ownership and exploration of intangible asset including location
of principal R&D facilities and their management.
 List of all entities and address which engaged in development and
management of intangible property.
 List of all intangible property of group, ownership entity and their address.
to be continue….
Information required in form 3CEAA
(Part B): (continued…)
 List and brief description of important agreement among members of group.
 Description of TP Policy of group related to R&D and intangible property.
 Details of transactions of transfer of intangible property amoung members of
group-
1. Name of Buying and selling entity.
2. Compensation paid for such transfer.
 Detail description of the financial arrangements of group including name and
address of top 10 unrelated lenders.
 Name and address of group entities that provide financial functions.
 Detail of TP policy of group for financial arrangement among group entities.
 Copy of consolidated financial statement of group.
Now we discuss about form 3CEAB:

Form Form Form

3CEAA 3CEAB 3CEAC

Form Form
3CEAD 3CEAE
 Form 3CEAB
(Intimation by a designated constituent entity, resident in India, of an
international group for the purposes of section 92D(4)of the Income Tax
Act,1961 read with Rule 10DA of Income Tax Rules,1962)
Object of form 3CEAB:

Where there are more then one constitute entities resident in India of an
international group then in such a case, this form shall decide that which entity
shall file form 3CEAA.
To whom form 3CEAB furnished .?

This form is also furnished to “Director General of Income

Tax (Risk Assessment)” {DGIT(RA)}
Cut off date to file Form 3CEAB to
DGIT(RA):
 Wording of Law:
 The intimation shall be made at least 30 Days before the due date of filling
the report 3CEAA.

 Our Comments:
 Due date of filling of 3CEAA is 30th November and due date for filling form
3CEAB is 30 days before the date of filling form 3CEAA i.e. Due date for filling
form is 31st October.
 As we know that due date for form 3CEAA for FY 2016-17 is 31 st March,2017,
so as per above provisions due date for form 3CEAB shall be 1 st March,2017.
Information required in form
3CEAB at the time of filliing
Information required in form 3CEAB:

 Name, address and PAN of designated constituent entity.

 Name of International group.
 Name and address of the parent entity of the international group.
 The Country of residence of the parent entity.
 Accounting year for which report is being submitted.
Now we discuss about form 3CEAC:

Form Form Form

3CEAA 3CEAB 3CEAC

Form Form
3CEAD 3CEAE
 Form 3CEAC
(Intimation by a constituent entity, resident in India, of an international group,
the parent entity of which is not resident in India, for the purpose of section
286(1) of the Income Tax Act,1961 read with Rule 10DB of Income Tax
Rules,1962)
To whom form 3CEAC furnished .?

This form is also furnished to “Director General of Income

Tax (Risk Assessment)” {DGIT(RA)}
Object of form 3CEAC:

In this form every constitute entity resident in India shall inform to DGIT that-
 Whether it is the alternate reporting entity of international group.
Or
 The detail of parent entity or the alternate reporting entity of international
group.
Applicability of Form 3CEAC:

This form is applicable only to those entities whose international group turnover
exceed ` 55,000 Millions.
Cut off date to file Form 3CEAC to
DGIT(RA):
 Wording of Law:
 The intimation shall be made at least 2 Months prior to the due date of filling
of CIT return under section 139(1).

 Our Comments:
 Due date of filling of CIT Return is 30th November and due date for filling form
3CEAC is 2 Months prior to the date of filling of CIT Return i.e. Due date for
filling form is 30th September.
 Due Date for filling for form 3CEAC for FY 2016-17 is 31st January, 2017.
Information required in form
3CEAC at the time of filliing
Information required in form 3CEAC:

 Name, address and PAN of constituent entity.

 Name of International group.
 Name and address of the parent entity of the international group.
 The Country of residence of the parent entity.
 Name and the address of alternate reporting entity.
Now we discuss about form 3CEAD:

Form Form Form

3CEAA 3CEAB 3CEAC

Form Form
3CEAD 3CEAE
 Form 3CEAD
(Country by Country Report)
(Report by a parent entity or an alternate reporting entity or any other
constituent entity, resident in India, for the purposes of section 286(2) or section
286(4) of Income Tax Act,1961 read with rules 10DB of Income Tax Rules,1962)
To whom form 3CEAD furnished .?

This form is also furnished to “Director General of Income

Tax (Risk Assessment)” {DGIT(RA)}
Applicability of Form 3CEAD:

This form is only applicable for every parent and alternate reporting entity as
prescribed by Form 3CEAC.

Note: If alternate entity is not Indian entity then no need to furnish this form.
Cut off date to file Form 3CEAD to
DGIT(RA):
 Wording of Law:
 Report in form 3CEAD shall be furnished to DGIT(RA) on or before the due
date for furnishing the return of income as specified in section 139(1).
 As per the Notification No. 26/2017 dated 25th Oct,2017, in case of FY 2016-
17 the due date for filling this form is 31st March,2018.

 Our Comments:
 Last date for filling CIT return is 30th November, i.e. cut off date for filling
form 3CEAD shall be also 30th November and as we know the first
implementation year for this provision is FY 2016-17 and date specified under
section 139(1) has passed. So CBDT issued notification no. 26/2017 and decide
cut off date 31st march,2018 for filling form 3CEAD for FY 2016-17.
Information required in form
3CEAD at the time of filliing
Information required in form 3CEAD:

 Name, address and PAN of reporting entity.

 Whether reporting entity is parent entity of the international group.
 Detail of allocation of Income Taxes and Business activity by tax jurisdiction.
 List of all the constituent entities of the multinational enterprises group
included in each aggregation per tax jurisdiction.
Now we discuss about form 3CEAE:

Form Form Form

3CEAA 3CEAB 3CEAC

Form Form
3CEAD 3CEAE
 Form 3CEAE
(Intimation on behalf of the international group for the purpose of the
proviso to section 286(4) of Income Tax Act,1961 read with rule 10DB of
Income Tax Rules,1962)
To whom form 3CEAE furnished .?

This form is also furnished to “Director General of Income

Tax (Risk Assessment)” {DGIT(RA)}
Applicability of Form 3CEAE:

This form is only applicable when the international group having more then one
constituent entity operating in India.
Object of form 3CEAE:

In this form Intimation to DGIT is made that which constituent entity in India
shall file form 3CEAC, when international group have more then one constituent
resident entity in India.
Cut off date to file Form 3CEAE to
DGIT(RA):

Till now, there is no timeline in rules, CBDT will release notification for the
same.

Our comments:
Technically cut off date surely before the filling of form 3CEAC and in the case of
FY 2016-17 the date is not yet prescribed so as per my understanding date for
filling of form 3CEAC will extend (currently 31st Jan, 2018)
Information required in form
3CEAE at the time of filliing
Information required in form 3CEAE:

 Name, address and PAN of reporting entity.

 Name of International group.
 Name and address of the parent entity of group.
 Name, address and PAN of constituent entity designated for furnish form
3CEAC
 Name, PAN and address of all other Indian resident constituent entity of the
international group.
Other Common Points
Period of Maintain the records:

 The information and documents shall be kept and maintained for a period of 8
years from the end of relevant assessment year.

i.e. in case of FY 2016-17 (AY 2017-18) the record shall maintain till AY 2025-26
and in case of FY 2017-18( AY 2018-19) the record shall maintain till AY 2026-27.
Exchange Rate:

 The rate of exchange for the calculation of the value in rupees of the
consolidated group revenue in foreign currency shall be TTBR of such currency
on the last date of the accounting year.

i.e. in case of FY 2016-17 the exchange rate shall be TTBR rate as on 31 st

March,2017 and in case of FY 2017-18 the exchange rate shall be TTBR as on 31 st
March,2018 of respective currency.
Thank you
CA Kehar Singh
(ACA, NET, M.com)