Due to the hardships being faced by the taxpayer on account of COVID -19, the Central Board of Direct Taxes has revised the timelines of Transfer Pricing (TP) compliances for Assessment Year 2021-22, vide circulars No. 16 and 17 of 2021.
In the light of the above, given below is a summary of Transfer Pricing compliance dates for ease of reference.
| S. No. | Nature of Compliance | Section | Rule | Form No. | Applicability | Original Due Date | Revised Due Date Due to COVID |
| 1 | Issuance of Accountant’s Report | 92E | 10E | 3CEB | Refer Note 1 | 31-Oct-21[1] | 31-Jan-22[2] |
| 2 | Transfer Pricing Documentation | 92D | 10D | NA | Refer Note 2 | To be maintained on a contemporaneous basis for each assessment year before the filing of Form 3CEB[3] | |
| 3 | Master File | ||||||
| 3.a | Part A | 92D(4) | 10DA | 3CEAA | Refer Note 3 | 30-Nov-21[4] | 28-Feb-22[5] |
| 3.b | Part B | 30-Nov-214 | 28-Feb-225 | ||||
| 3.c | Designation | 3CEAB | 31-Oct-214 | 29-Jan-225 | |||
| 4 | Country-by-Country Report | ||||||
| 4.a | Intimation | 286(1) | 10DB | 3CEAC | Refer Note 4 | In case the due date for filing falls on 30-Nov-21, then same may be furnished by 31-Dec-21[6] | |
| 4.b | County-by-Country Report | 286(2) | 10DB | 3CEAD | |||
| 4.c | Designation | 286(4) | 10DB | 3CEAE | |||
Note:
- To be filed by every taxpayer (including non residents) who has entered into in international transaction or specified domestic transaction with its Associated Enterprise
- Every taxpayer (including non residents) who has entered into an international transaction is required to maintain Transfer Pricing documentation.
In case the aggregate value of the international transaction is less than INR 1 crore, then the taxpayer is required only to maintain the details of international transactions undertaken along with the details of the benchmarking, justifying the arm’s length nature of the international transaction.
- Form 3CEAA (Part A)- To be filed by every Constituent Entity[7] of an International Group[8], even if it has not undertaken an international transaction during the year;
Form 3CEAA (Part B)- To be filed by every Constituent Entity of an International group if the following conditions are satisfied:-
- The consolidated revenue of the International Group during the an Accounting Year[9] exceeds INR 500 crores; and
- The aggregate value of international transactions during the Accounting Year, as per the books of account, exceeds INR 50 crore; or
- In respect of purchase, sale, transfer, lease or use of intangible property during the Accounting Year, as per the books of accounts, exceeds INR 10 crore
Form 3CEAB (Designation)- In case there are more than one Constituent Entities of an International Group who are required to file form 3CEAA, then any one Constituent Entity can be designated to file Form 3CEAA by filing Form 3CEAB
- Form 3CEAC (Intimation)- To be filed by resident Constituent Entity which part of an International Group whose parent company is a non-resident and the group’s consolidated revenue during the preceding accounting year exceeds INR 6,400 crore. The said intimation has to be filed within 10 months from the end of the relevant Accounting Year.
Form 3CEAD (CbCR Report)- To be filed by resident parent company/ alternate reporting entity of an International Group, in case the consolidated revenue during the preceding accounting year exceeds INR 6,400 crore. To be filed 12 months from the end relevant Accounting Year.
From 3CEAE (Designation)- In case there are more than one constituent entities of a group who are required to file form 3CEAC, then any one entity of the constituent entity can be designated to file Form 3CEAC by filing Form 3CEAE.
[1] Section 92E read with sections 92F and 139 of the Income-tax Act, 1961 (the Act)
[2] Cir No. 17 issued by the CBDT on 9 Sep 2021
[3] Section 92D of the Act read with Rule 10D of the Income-tax Rules, 1962 (the Rules)
[4] Rule 10DA of the Rules
[5] Cir No. 17/2021 issued by the CBDT on 9 Sep 2021
[6] Cir No. 16/2021 issued by the CBDT on 29 Aug 2021
[7] Constituent Entity means,—
(i) any separate entity of an international group that is included in the consolidated financial statement of the said group for financial reporting purposes, or may be so included for the said purpose, if the equity share of any entity of the international group were to be listed on a stock exchange;
(ii) any such entity that is excluded from the consolidated financial statement of the international group solely on the basis of size or materiality; or
(iii) any permanent establishment of any separate business entity of the international group included in sub-clause (i) or sub-clause (ii), if such business unit prepares a separate financial statement for such permanent establishment for financial reporting, regulatory, tax reporting or internal management control purposes (Ref Section 286 of the Act)
[8] International Group means any group that includes,—
(i) two or more enterprises which are resident of different countries or territories; or
(ii) an enterprise, being a resident of one country or territory, which carries on any business through a permanent establishment in other countries or territories (Ref Section 286 of the Act)
[9] Accounting Year means,—
(i) a previous year, in a case where the parent entity is resident in India; or
(ii) an annual accounting period, with respect to which the parent entity of the International Group prepares its financial statements under any law for the time being in force or the applicable accounting standards of the country or territory of which such entity is resident, in any other case.
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