The Finance Act, 2016 introduced provisions relating to Country by Country Report (CbCR) and Master File pursuant to adoption of OECD’s BEPS Action Plan-13 in India. On 31st October 2017, CBDT released the Final Rules with respect to maintenance and furnishing of Master File and CbCR.
Summary of Final Forms and Rules for Master-File applicable for F.Y 2017-18
| Section 92D (Master File Forms) | Purpose | Conditions for Applic-ability | Who is to file? | Timeline | Filed to whom? | Statutory Source |
| Form 3CEAA | Part A: – Limited information to be furnished. | Every constituent entity/ designated constituent entity of an international group has to file Part A irrespective of the turnover. | The CE in India. | before due date of filling u/s 139(1) For FY 2018-19 :- 31st Oct 2019 or 30th November 2019 | DGIT (Risk Assess-ment) | Proviso to S.92D(1) :- For keeping and maintenance of report S.92D(4) :- Furnishing of report Rule 10DA :- Contents |
| Part B: – Detailed information to be furnished. (Broadly same as OECD Master File) | 1. Consolidated revenue > 500 cr; and
2. aggregate international transactions> 50 cr or; intangible related transactions > 10 cr. |
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| Form 3CEAB | To notify the CE designated for furnishing Master File | When there is more than one CE in India. | The CE designated for furnishing Master File. | Thirty days before the due date of filing Form 3CEAA. For FY 2018-19 :- 30th September or 31st October, 2019 |
DGIT (Risk Assess-ment) | S.92D(4) Read with Rule 10DA |
Summary of Final Forms and Rules for CbCR
| Section 286 (CBCR Forms) | Purpose | When to File? | Who is to file? | Timeline | Filed to whom? | Statutory Source |
| Form 3CEAC | To intimate ARE or PE (Whether itself or some other) Note: – Only if PE is not resident in India. |
If international consolidated revenue > 5500 crores (If CE is resident in India) | Every CE resident in India. | Two months prior to the due date for furnishing Form 3CEAD. For FY 2018-19 :- 31st January 2020 |
DGIT (Risk Assess-ment) | S.286(1) Read with Rule 10DB |
| Form 3CEAD | CBCR Reporting | If international consolidated revenue > 5500 crores |
|
Within 12 months following the end of reporting accounting year. For FY 2018-19 :- 31st March 2020 |
DGIT (Risk Assess-ment) | S.286(2) :-Furnishing of report S.286(3) :- Contents Read with Rule 10DB |
| Form 3CEAE | To notify the CE designated for furnishing CbCR, only if there is more than one CE in India (and conditions given in note 1 below are fulfilled) | If international consolidated revenue > 5500 crores | The designated CE. | No timeline is prescribed as per the Final Rules. | DGIT (Risk Assess-ment) | Proviso to S.286(4) Read with Rule 10DB |
Note 1: If there are multiple CE’s in India and if, the parent entity (‘PE’) of such constituent entities is resident in a country:
- Where the parent entity is not obligated to file the CbCR
- With which India does not have an agreement for exchange of the CbCR; or
- There has been a systematic failure and such failure is intimated to the Indian constituent entity.
then one of them will be designated to undertake compliances under S.286.
Consolidated Turnover-Wise Compliance Obligations
| Consolidated Turnover (CT) | Compliance Obligations |
| Upto 500 Crores | Every CE/Designated CE of the international group to file Part A of Form 3CEAA |
| >500 crores but < 5500 crores
International transaction < 50 crore and; Intangible related transactions < 10 crores |
|
| > 500 crores but < 5500 crores; and International transaction > 50 crore; or Intangible related transactions > 10 crores | Part A and Part B of Form 3CEAA |
| > 5500 crores | CBCR requirements apply |
| >5500 crores; and
International transaction > 50 crores; or Intangible related transactions > 10 crores |
Maintain and furnish Master File. Also, CBCR requirements apply. |
Important Points
1. Please note that Part A of Form 3CEAA is to be filed by every company undertaking an international transaction – irrespective of the monetary value of international transaction. Therefore, it shall apply to you.
2. Filing of other forms (CbCR or Part B of master file) depends upon the monetary thresholds as specified below.
Monetary Thresholds
1. CbCR requirements shall apply only if the consolidated turnover of the international group is more than 5,500 cr in the preceding financial year (i.e. FY 2018-19). (Kindly, check the international consolidated turnover for your group globally?)
2. Master-File requirements shall apply if the following conditions are met:
- The consolidated revenue of the MNE Group exceeds INR 500 crores (approximately USD 75 million/ Euro 65 million) in the preceding year; (Please check, what is the consolidated turnover of your group globally); if it is greater than INR 500 cr than further check if anyone of the following conditions is satisfied:
- The aggregate value of international transactions exceeds INR 50 crores (approximately USD 7.5 million / Euro 6.5 million); or
- International transactions relating to intangible property (for example royalty payment) exceed INR 10 crores (USD 1.5 million / Euro 1.33 million) in the preceding year.
If the consolidated turnover is more than INR 500 cr and any of the above two conditions are met than Part B of Master File in Form 3CEAA is to be furnished.
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