Any Indian entity that transacts with a foreign parent, subsidiary, or group company must report those dealings to the tax department. Miss the filing and the penalty starts at INR 1,00,000. Form 3CEB is the accountant’s report required under Section 92E of the Income Tax Act, 1961. It is due on 31 October of the assessment year. Every person who enters an international transaction with an associated enterprise, or a specified domestic transaction, must file it.
The obligation follows the transaction, not the company type. A company, firm, LLP, individual, or association of persons can all be caught.
| Item | Detail | Source |
|---|---|---|
| Legal basis | Section 92E + Rule 10E | Income Tax Act, 1961 / Income Tax Rules, 1962 |
| Who files | Any person with a covered transaction | Section 92E, Income Tax Act, 1961 |
| International transaction threshold | None (a single rupee triggers filing) | Section 92B, Income Tax Act, 1961 |
| Specified domestic transaction (SDT) threshold | INR 20 crore aggregate per year | Section 92BA, Income Tax Act, 1961 |
| Due date | 31 October of the assessment year (AY) | Section 92E / CBDT Tax Calendar |
| Linked income tax return (ITR) due date | 30 November of the assessment year | Section 139, Income Tax Act, 1961 |
| Signatory | Chartered Accountant (CA) with Digital Signature Certificate (DSC) | Section 288(2), Income Tax Act, 1961 |
| Penalty for non-filing | INR 1,00,000 | Section 271BA, Income Tax Act, 1961 |
What is Form 3CEB?
Form 3CEB is the report from a Chartered Accountant (CA) that every person entering an international transaction with an associated enterprise, or a specified domestic transaction, must furnish under Section 92E of the Income Tax Act, 1961. The legal basis has two parts. Section 92E creates the obligation to obtain and furnish an accountant’s report. Rule 10E of the Income Tax Rules, 1962 prescribes Form 3CEB as the format of that report.
The report certifies that transfer pricing documentation is maintained, and it reports each covered transaction with the pricing method applied. Only an “accountant,” defined in Section 288(2), may sign it. See the certification section below for who qualifies.
Who needs to file Form 3CEB?
Any person who entered a covered transaction during the previous year must file Form 3CEB, regardless of profit or loss. That includes companies, firms, LLPs, individuals, and associations of persons, not only companies. Two triggers apply: an international transaction with an associated enterprise, or a specified domestic transaction above the threshold. For international transactions there is no minimum value, so even one covered dealing requires the filing.
What counts as an international transaction?
An international transaction is any dealing between two or more associated enterprises, where either or both are non-residents, defined in Section 92B of the Income Tax Act, 1961. It carries no monetary threshold, so a single rupee triggers the filing.
Covered dealings under Section 92B include:
- Sale, purchase, or lease of tangible or intangible property.
- Provision of services.
- Lending, borrowing, or guarantees.
- Cost-sharing or contribution arrangements.
- Business restructuring or reorganisation.
- Any transaction with a bearing on profits, income, losses, or assets.
What are associated enterprises?
Two enterprises are associated when one participates, directly or indirectly, in the management, control, or capital of the other, or when the same persons participate in both, per Section 92A of the Income Tax Act, 1961. Beyond that general test, Section 92A(2) sets bright-line deeming rules. If any one is met, the enterprises are associated.
| Deeming test (Section 92A(2)) | Threshold | Source |
|---|---|---|
| Voting power held, directly or indirectly | ≥ 26% | Section 92A, Income Tax Act, 1961 |
| Loan as share of borrower’s book value of total assets | ≥ 51% | Section 92A(2)(c) |
| Guarantee of the other’s total borrowings | ≥ 10% | Section 92A(2)(d) |
| Board of directors or executive directors appointed | > 50% | Section 92A(2)(e) |
| Raw materials and consumables supplied by the other | ≥ 90% | Section 92A(2)(h) |
What are specified domestic transactions?
A specified domestic transaction (SDT) is covered only when the aggregate value of such transactions exceeds INR 20 crore in the previous year, per Section 92BA of the Income Tax Act, 1961. The Finance Act, 2015 raised the threshold from INR 5 crore, effective AY 2016-17. The Finance Act, 2017 then removed Section 40A(2)(b) related-party payments from the SDT scope. What remains is mainly transactions involving profit-linked deduction units under Section 80-IA and Section 10AA (SEZ) units.
When is Form 3CEB due?
Form 3CEB is due on 31 October of the assessment year, one month before the 30 November ITR due date that applies to transfer pricing cases under Section 139. The one-month gap is deliberate: the CA’s report must be on record before the return is filed. The 30 November date is the more commonly confused deadline, so treat the two dates as separate.
| Filing (assessment year) | Due date | Source |
|---|---|---|
| Form 3CEB, any AY | 31 October of the AY | CBDT Tax Calendar |
| ITR for TP cases, any AY | 30 November of the AY | Section 139, Income Tax Act, 1961 |
| Form 3CEB, AY 2024-25 | 31 October 2024 | CBDT Tax Calendar |
| Form 3CEB, AY 2026-27 | 31 October 2026 | CBDT Tax Calendar |
CBDT (Central Board of Direct Taxes) extensions are common in recent years. Confirm the current year’s date against the latest CBDT circular before you file.
How do you file Form 3CEB online?
Filing happens entirely on the income tax e-filing portal. The taxpayer assigns the form to a CA, the CA prepares and uploads it, and both parties sign with Digital Signature Certificates (DSC). The taxpayer and the CA must each hold a valid DSC and be registered on the portal.
- Add the CA on the e-filing portal under “Authorised Partners → My Chartered Accountant(s).”
- Assign Form 3CEB to the CA, selecting the filing type and assessment year.
- The CA accepts the assignment and prepares the form, using the offline (JSON) utility on the taxpayer’s behalf.
- Both taxpayer and CA sign and submit with valid DSCs.
Use the official Form 3CEB reference on incometaxindia.gov.in to confirm the current format before filling it.
How do you fix a “DSC is invalid” error?
A “DSC is invalid” error usually means the certificate, its registration, or the signing utility is out of date. First check the DSC has not expired. Then confirm the DSC is registered against the correct PAN on the e-filing portal. Finally, update the emBridge or DSC Management Utility (emsigner), confirm the local service is running on the correct port, and allow the localhost connection in a supported browser.
What is transfer pricing in India?
Transfer pricing is the price at which one enterprise charges an associated enterprise for goods, services, or funds. Indian law requires that price to match the arm’s length price (ALP), the price unrelated parties would agree in comparable conditions. A chain of provisions in the Income Tax Act, 1961 builds this regime, and Form 3CEB sits at the end of it as the accountant’s report.
| Section | What it does | Source |
|---|---|---|
| 92 | Computes income from covered transactions at ALP | Income Tax Act, 1961 |
| 92A | Defines associated enterprises | Income Tax Act, 1961 |
| 92B | Defines international transaction | Income Tax Act, 1961 |
| 92BA | Defines specified domestic transaction | Income Tax Act, 1961 |
| 92C | Prescribes the ALP methods | Income Tax Act, 1961 |
| 92D | Requires documentation (Rule 10D) | Income Tax Act, 1961 |
| 92E | Requires the accountant’s report (Form 3CEB) | Income Tax Act, 1961 |
| 92F | Defines terms, including “arm’s length price” | Income Tax Act, 1961 |
How is the arm’s length price determined?
Section 92C prescribes the methods for computing the arm’s length price, and the taxpayer applies the most appropriate method for each transaction. The Form 3CEB annexure reports the single method applied per transaction, not every method. Selection depends on the transaction type, data availability, and comparability, judged case by case.
| Method | What it does | Source |
|---|---|---|
| Comparable Uncontrolled Price (CUP) | Compares the price to an uncontrolled comparable transaction | Section 92C / Rule 10B |
| Resale Price Method (RPM) | Works back from the resale price to an arm’s length margin | Section 92C / Rule 10B |
| Cost Plus Method (CPM) | Adds an arm’s length markup to costs incurred | Section 92C / Rule 10B |
| Profit Split Method (PSM) | Splits combined profit by relative contribution | Section 92C / Rule 10B |
| Transactional Net Margin Method (TNMM) | Compares net profit margins to comparables | Section 92C / Rule 10B |
| Other Method | Uses any price that would apply in uncontrolled comparable circumstances | Rule 10AB |
What information does Form 3CEB contain?
Form 3CEB has three parts plus a clause-wise annexure. Part A collects general particulars: name, PAN, status, and the aggregate value of covered transactions. Part B reports each international transaction clause by clause. Part C does the same for specified domestic transactions. For each transaction the CA reports three fields explained below.
The method is the Section 92C method the taxpayer applied. The book value is the transaction value recorded in the accounts. The ALP is the arm’s length value that method produces. The annexure groups transactions into categories: tangible property, intangibles, services, financing and guarantees, cost sharing, business restructuring, and a residual “any other” clause. The official Form 3CEB on incometaxindia.gov.in is the canonical reference for the current clause list.
Who can certify Form 3CEB?
Only a practising Chartered Accountant can certify and sign Form 3CEB. Section 92E requires the report to come from an “accountant,” and the Income Tax Act defines that term in Section 288(2) as a chartered accountant within the meaning of the Chartered Accountants Act, 1949. Certification means the CA examines the taxpayer’s accounts and transfer pricing records and attests the particulars are true and correct. That is why company management, a company secretary, or a tax practitioner cannot sign it.
What is the penalty for not filing Form 3CEB?
The penalty for failing to furnish Form 3CEB is INR 1,00,000 under Section 271BA, imposable by the Assessing Officer. It applies even in a loss year, because the obligation is transaction-triggered, not profit-triggered. Separate failures carry their own penalties across the transfer pricing regime.
| Section | Trigger | Penalty | Source |
|---|---|---|---|
| 271BA | Failure to furnish Form 3CEB | INR 1,00,000 | Penalties under the Income Tax law, incometaxindia.gov.in |
| 271AA | Failure to maintain or report documentation | 2% of transaction value | Income Tax Act, 1961 |
| 271G | Failure to produce documentation on request | 2% of transaction value | Income Tax Act, 1961 |
| 270A | Under-reporting or misreporting on ALP adjustments | 50% to 200% of tax | Income Tax Act, 1961 |
What is the difference between Form 3CD and Form 3CEB?
Form 3CD is the tax audit report under Section 44AB. Form 3CEB is the transfer pricing report under Section 92E. They are separate filings with separate triggers, and one is not “submitted along with” the other. A taxpayer can owe one, both, or neither, depending on turnover and cross-border activity.
| Aspect | Form 3CD | Form 3CEB | Source |
|---|---|---|---|
| Governing section | Section 44AB | Section 92E | Income Tax Act, 1961 |
| Purpose | Tax audit particulars | Transfer pricing accountant’s report | Income Tax Act, 1961 |
| Who must file | Persons crossing audit turnover limits | Persons with an international transaction or SDT over INR 20 crore | Income Tax Act, 1961 |
| Due date | 30 September of the AY | 31 October of the AY | CBDT Tax Calendar |
| Penalty | Under Section 271B | INR 1,00,000 under Section 271BA | Income Tax Act, 1961 |
How does Form 3CEB fit with Rule 10D documentation, Master File, and CbCR?
Form 3CEB is the CA’s certificate, not the documentation itself. Rule 10D, under Section 92D, prescribes the contemporaneous transfer pricing documentation, the local file of pricing analyses and supporting records, that every taxpayer covered by Section 92E must maintain. Form 3CEB certifies that this documentation exists and reports the transactions. Larger groups carry two further layers, each with its own thresholds.
| Layer | Form | Threshold | Source |
|---|---|---|---|
| Local file (TP documentation) | Rule 10D | Maintained by every Section 92E taxpayer | Rule 10D / Section 92D |
| Master File | Form 3CEAA | Group consolidated revenue over INR 500 crore and international transactions over INR 50 crore (or intangibles over INR 10 crore) | Rule 10DA |
| Country-by-Country Report (CbCR) | Form 3CEAD | Group consolidated revenue over INR 6,400 crore (about EUR 750 million) | Rule 10DB |
Confirm current Master File and CbCR thresholds against Rule 10DA and Rule 10DB before relying on them, as they are reviewed periodically.
Will Form 48 replace Form 3CEB?
The draft Income-tax Rules, 2026 propose Form 48 as the successor to Form 3CEB, per the CBDT draft rules published under the Income-tax Act, 2025. The proposal shifts from the current questionnaire-style report to a more structured, data-rich format that requires underlying computations, not just method, book value, and ALP confirmation. This is a draft proposal, not law. Verify against the final CBDT notification before treating any Form 48 change as current.
How Commenda Helps With Form 3CEB and Transfer Pricing
Commenda’s transfer pricing product tracks which transfer pricing filings your Indian entity owes, prepares the documentation, and files Form 3CEB on time. You know what is due, when it is due, and that it got filed. Our in-house transfer pricing team drafts the intercompany agreement, runs the benchmarking study, and certifies the arm’s length position that the 3CEB report rests on.
Keep the 31 October deadline in view with our compliance calendar tool, which tracks filing dates by country and entity. Book a demo to get a free Form 3CEB applicability check for your India entity.
