Form 3CEAB – Intimation by Designated Constituent Entity (DCE)
CA Amit Bansal
CA Amit Bansal is a Fellow Chartered Accountant with over a decade of experience in accounting, auditing, and advisory. As Partner at GMCS & Co. and Founder of ABVS Management Consultancy, he leads key assurance and compliance projects across industries. He holds ICAI certifications in Forensic Accounting (FAFD), Concurrent Audit of Banks, ADR, and IND AS, and is a certified Peer Reviewer, known for his commitment to audit quality and integrity.
In today’s globally connected business environment, multinational enterprises (MNEs) often operate across multiple countries through various subsidiaries and branches. To ensure transparency in international transactions and prevent tax evasion, governments worldwide have adopted stricter compliance and reporting requirements. India, as a member of the OECD’s Base Erosion and Profit Shifting (BEPS) initiative, has also implemented a detailed framework for reporting transfer pricing information.
One of the key components of this framework is Form 3CEAB, which deals with the intimation by the Designated Constituent Entity (DCE) in respect of Country-by-Country Reporting (CbCR). This article explains the purpose, applicability, filing process, and due dates of Form 3CEAB, helping businesses understand their compliance responsibilities more clearly.
Understanding the Context – Country-by-Country Reporting (CbCR)
The concept of Country-by-Country Reporting arises from Action Plan 13 of the OECD’s BEPS framework, which aims to ensure that MNEs pay taxes in the jurisdictions where their economic activities and value creation take place. Under this plan, multinational groups are required to disclose key financial and operational details such as income, profits, taxes paid, and the nature of their business activities across countries.
In India, these reporting obligations are governed by Section 286 of the Income-tax Act, 1961, read with Rule 10DB of the Income-tax Rules, 1962.
The Country-by-Country Report (CbC Report) is typically filed by the parent entity or by an alternate reporting entity (ARE) of an MNE group. However, in certain situations, constituent entities of the group located in India are required to notify the Indian tax authorities of the entity will be filing the CbC report on behalf of the group. This is done through Form 3CEAB.
What is Form 3CEAB?
Form 3CEAB is an intimation form to be filed by the Designated Constituent Entity (DCE) of a multinational enterprise group that has more than one constituent entity resident in India. The form is essentially a declaration to the Income-tax department providing information about which Indian entity has been designated to furnish the CbC-related intimation on behalf of all Indian entities of the group.
In simpler terms, if a multinational group has multiple subsidiaries or branches in India, one of them must be chosen as the “Designated Constituent Entity.” This entity will then file Form 3CEAB to inform the Indian tax authorities about the filing arrangements of the CbC report for the group.
Legal Framework and Governing Provisions
Form 3CEAB derives its authority from Rule 10DB(1)(viii) of the Income-tax Rules, 1962, read with Section 286(1) of the Income-tax Act, 1961.
The purpose of this rule is to ensure that, when there are multiple constituent entities of an MNE group in India, the Income-tax department receives a single, consolidated intimation through one designated entity. This avoids duplication and simplifies the compliance process for both taxpayers and authorities.
Who Needs to File Form 3CEAB?
Form 3CEAB must be filed when:
- The MNE Group has more than one constituent entity in India, and
- The parent entity or alternate reporting entity (ARE) of the group is not resident in India, and
- The group is required to furnish a Country-by-Country Report (CbCR) under Section 286(2) or 286(4) of the Income-tax Act.
In such cases, the group must designate one of its Indian constituent entities as the DCE, which will file Form 3CEAB on behalf of all other Indian entities within the same group.
Due Date for Filing Form 3CEAB
The intimation in Form 3CEAB must be filed at least 30 days before the due date for submitting the Country-by-Country Report (Form 3CEAD).
Generally, the due date for filing Form 3CEAD (CbC Report) is 12 months from the end of the reporting accounting year of the MNE group.
For instance, if the accounting year ends on 31st December 2024, then Form 3CEAD would be due by 31st December 2025. Consequently, Form 3CEAB should be filed by 1st December 2025 (30 days prior).
Information Required in Form 3CEAB
While filling out Form 3CEAB, the Designated Constituent Entity must provide:
- Name, address, and PAN of all Indian constituent entities within the MNE group.
- Details of the parent entity or the alternate reporting entity (ARE), including its name, address, tax identification number, and country of residence.
- Accounting year followed by the MNE group.
- Name and designation of the person making the declaration on behalf of the DCE.
- A confirmation that the DCE has been authorized to file the intimation on behalf of all Indian entities in the group.
Mode of Filing
Form 3CEAB must be electronically filed on the Income-tax e-filing portal (https://www.incometax.gov.in) using a valid digital signature certificate (DSC) of the authorized signatory of the Designated Constituent Entity.
After submission, an acknowledgment number is generated, which should be preserved for future reference and verification purposes.
Consequences of Non-Compliance
Failure to file Form 3CEAB within the prescribed timeline or filing incorrect information may attract penalties under Section 286(7) and 286(8) of the Income-tax Act.
The penalties may include:
- A fine of ₹5,000 per day for failure to furnish the required information before being served a notice, and
- A fine of ₹15,000 per day for continued default even after receiving a notice, and
- In cases of intentional failure, the penalty may extend to ₹50,000 per day of continuing default.
Hence, timely and accurate filing of Form 3CEAB is crucial for ensuring compliance and avoiding heavy penalties.
Practical Importance of Form 3CEAB
Form 3CEAB might seem like a minor procedural requirement, but it plays a key role in ensuring that the Indian tax authorities are properly informed about which entity within the MNE group will handle CbC compliance.
It provides clarity and coordination among multiple Indian subsidiaries, preventing duplication of reporting efforts. Moreover, it aligns India’s tax reporting system with international standards under BEPS, strengthening transparency and cooperation in global taxation.
Conclusion
Form 3CEAB serves as a vital compliance requirement for multinational groups operating in India. It ensures that when several entities of the same group exist in India, one entity takes responsibility for coordinating with the Income-tax department on Country-by-Country reporting matters.
By filing Form 3CEAB promptly, organizations can demonstrate transparency, avoid penalties, and ensure that their international tax obligations are met efficiently.
As India continues to tighten its transfer pricing and reporting framework, multinational enterprises must stay proactive in meeting their obligations under Sections 286 and Rule 10DB—and Form 3CEAB is a crucial step in that direction.
For any clarifications or queries, please feel free to reach out to us at admin@fintracadvisors.com
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