Indore (Madhya Pradesh): Income tax experts have stated that in this era of globalization, the provisions of transfer pricing are applicable on international and domestic trade transactions and in relation to such transactions, an audit report has to be filed in Form 3CEB by October 31.
Otherwise, a penalty of Rs 1 lakh and 2+2% of the transaction value can be imposed. Therefore, it is necessary to investigate every transaction thoroughly and file an audit report in the prescribed form if necessary.
Tax expert CA Deepak Mantri and CA Chaitanya Maheshwari said it while addressing a seminar organised by the Tax Practitioners Association and CA Indore Branch. The subject of the seminar was ‘Transfer Pricing’.
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They said that the topic is covered under Income Tax Sections 92A to 92E. They said that the provisions of transfer pricing in Section 92BA will also be applicable on new domestic companies on which concessional tax is payable at the rate of 15%. The audit report has to be filed in Form 3CEB and reports have to be filed in Master File documentation, Form 3CEAA, 3CEAB, 3CEAC.
They said that in case of non-compliance, the following penalties can be imposed-Rs 1 lakh in case of non-filing of Form 3CEB, 2% of the transaction value on non-reporting of transactions, 2% of the transaction value on not preparing transfer pricing documentation, Rs 5 lakh penalties can be imposed in case of non-filing of Form 3CEAA. The last date for filing Form 3CEB is 31 October, which has to be filed online.
Earlier, delivering the welcome address TPA President CA JP Saraf said that in this era of globalization, TPA & CA Branch organized a panel discussion on the topic of ‘Transfer Pricing’, an important tax compliance applicable to multi-national groups and companies, in which various issues and controversies were discussed.
On this occasion a large number of members including CA Manoj Phadnis, CA Vikram Gupte, CA Umesh Goyal, CA Avinash Agarwal, CA Tejendra Singh were present in the seminar. CA Abhay Sharma conducted the seminar. CA Rajat Dhanuka delivered the vote of thanks.