Form 3CEB: the transfer pricing report your Indian subsidiary files every year
Who has to file, why the September extension does not help, the transactions that slip through, what a mistake costs, and what changes when Form 48 takes over.
Summary
- Form 3CEB is a chartered accountant's report on an Indian company's dealings with associated enterprises abroad. There is no minimum value.
- For FY 2025-26 it is due on 31 October 2026. The September 2026 extension for audit cases does not cover it.
- From tax year 2026-27 it becomes Form 48 under the Income-tax Act, 2025, and late filing attracts a fixed fee.
If your Indian subsidiary did any business with its US parent during the year, it almost certainly files a Form 3CEB. Required by section 92E of the Income-tax Act, 1961 and Rule 10E, it is a chartered accountant's certificate that those transactions were priced at arm's length. It sits beside the company's other annual filings, with its own date and penalties.
Who has to file
Section 92E covers every person who entered into an international transaction or a specified domestic transaction during the year. For an Indian subsidiary, that means any transaction with an associated enterprise abroad, starting with the US parent. There is no minimum value: a single reimbursement is enough.
Specified domestic transactions count only above ₹20 crore a year, and now mostly concern units claiming profit-linked deductions.
The due date for FY 2025-26
Form 3CEB is due on the "specified date", one month before the section 139(1) return date. For a 31 March year-end, that is 31 October 2026, with the return due on 30 November 2026.
CBDT Circular 07/2026 of 28 September 2026 moved the report and return to 21 October and 21 November for audit cases. It covers only audit cases where section 92E does not apply, so neither date moves for a company that files Form 3CEB.
How it is filed and what it contains
Filing takes two steps on the e-filing portal. The company assigns the form to its chartered accountant, who uploads it, and the company then accepts it from its own login. The report covers:
- Details of the company and of each associated enterprise
- Every international transaction: what it was, its value, and the pricing method used
- Whether each price was at arm's length
- The accountant's view on whether the documents required by section 92D and Rule 10D have been kept
Full documentation is required once international transactions exceed ₹1 crore in a year, and it must exist by the Form 3CEB due date.
Transactions that are often missed
The services fee is rarely what gets missed. The smaller flows around it are.
Each of these is usually reportable:
- Reimbursements of expenses in either direction, including cost recharges
- ESOPs granted by the US parent to Indian employees, and any recharge. Without a recharge, practice varies, so agree a documented position with your adviser.
- Secondments of employees between the two companies
- Loans, interest and guarantees, which the law names expressly as international transactions
- Share issues and buybacks with the parent, often disclosed even though a share premium cannot be adjusted as income
- Software licences and shared costs charged by the parent
Our US–India transfer pricing guide covers how the main fee is priced. Each flow above also belongs in the intercompany services agreement, so the report has something to match.
What a mistake costs
For FY 2025-26 the 1961 Act penalties apply, kept in force by section 536 of the 2025 Act.
Form 3CEB penalties for FY 2025-26
| Failure | 1961 Act section | Consequence |
|---|---|---|
| Report not furnished | 271BA | ₹1 lakh |
| Transaction not reported, documents not kept, or incorrect information given | 271AA | 2% of the value of each transaction concerned |
| Documents not produced when the tax officer asks | 271G | 2% of the value of the transaction |
| Price not at arm's length | 92C, 92CA, 270A | Income adjusted and taxed; a penalty may follow: 50% of the tax on under-reported income, or 200% for misreporting |
Leaving an international transaction out of the report counts as misreporting, so the 200% rate can apply.
From tax year 2026-27, a fee under section 428 of the 2025 Act replaces the late-filing penalty: ₹50,000 if up to a month late, ₹1 lakh after that.
Form 48 and the Income-tax Act, 2025
The Income-tax Act, 2025 took effect on 1 April 2026. From tax year 2026-27, section 172 replaces section 92E and Form 48 replaces Form 3CEB.
This October's report covers FY 2025-26, so it is still Form 3CEB. The first Form 48 covers the year to 31 March 2027, and the return date for these cases stays at 30 November, so the first Form 48 is due by 31 October 2027.
The master file: Form 3CEAA
An Indian subsidiary of a US group is a constituent entity of an international group. Every such entity files Part A of Form 3CEAA, a short form, whatever the group's size.
Part B, the full master file, applies where group revenue exceeds ₹500 crore and either international transactions exceed ₹50 crore or intangible-related ones exceed ₹10 crore. Form 3CEAA is due on the return date, 30 November 2026 for FY 2025-26.
Three checks before the CA signs
- Reconcile to the books. Every amount in Form 3CEB should tie to the audited accounts and to the tax audit report.
- Match the agreement. The method and markup reported should be the ones in the signed intercompany agreement.
- Compare with the US side. The US parent reports the same dealings on Schedule M of its Form 5471, usually for a calendar year. The overlapping months should agree, because both tax authorities can look.
Questions
What is Form 3CEB?
A chartered accountant's report under section 92E of the Income-tax Act, 1961 on a company's transactions with associated enterprises. It states whether they were at arm's length and whether the required documents were kept.
Who is required to file Form 3CEB?
Anyone that entered into an international transaction with an associated enterprise during the year, whatever its value. Specified domestic transactions above ₹20 crore also bring a company in.
What is the Form 3CEB due date for FY 2025-26?
31 October 2026, one month before the 30 November return date for transfer pricing cases. CBDT's September 2026 extension does not apply to these cases.
What is the penalty for not filing Form 3CEB?
₹1 lakh under section 271BA for FY 2025-26. From tax year 2026-27 it becomes a fee of ₹50,000, or ₹1 lakh if more than a month late.
Has Form 3CEB been replaced by Form 48?
Yes, from tax year 2026-27, under section 172 of the Income-tax Act, 2025. The report for FY 2025-26 is still Form 3CEB.
If you are not sure every flow with your US parent made it into last year's report, start with a Corridor Health Check from our US–India cross-border desk.
Current as at October 2026. General information, not tax advice. Due dates are sometimes extended, so check the current date and form before filing.
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