Transfer Pricing News

Important Notifications and Circulars issued during the Quarter 4

Additional information requirements in the online version of Transfer Pricing Audit report (i.e. Form No. 3CEB)

Earlier in June 2021, the Income Tax department had taken a policy decision to initiate the transition to a newly developed e-filing web portal from its existing online interface, so as to seamless the electronic filing process of income tax returns and to shorten the time taken for other tax related compliances.

In the earlier online interface, the filing of Transfer Pricing Audit report i.e. Form 3CEB was undertaken through offline utility and thereafter the pre-filed generated file was uploaded onto e-filing portal for completing the filing process.

Now with the introduction of the new e-filing portal, the tax department has released the online version of Form No. 3CEB, wherein the requisite details can now be e-filed online.

However, as against the earlier version of Form 3CEB in offline utility mode, the Income Tax department has inserted a new information requirement relating to “Type of Unique Identification number (PAN/Tax Identification Number/Other)” in the online version. This additional information requirement is required to be furnished in respect of each associated enterprise for all the international transactions which are being disclosed in Form No. 3CEB.

It is worthwhile to note that this requisition for Unique Identification number is not provided in the template of Form 3CEB prescribed under the Income-Tax Rules, 1962. Therefore this is an additional information requirement, which the taxpayer has to gather the required details from its associated enterprise to comply with the requirements at the time of filing of Form No. 3CEB for FY 2020-21.

Further to note that the due date for filing Form No. 3CEB for FY 2020-21 is 31 January 2022, unless the same is extended due to the recent restrictions imposed in light of Covid-19 resurgence.