Mandatory under Section 92E of the Income Tax Act, Form 3CEB must be certified by a CA for all taxpayers with international transactions with associated enterprises. We prepare a comprehensive Transfer Pricing Study — benchmarking analysis, arm's length pricing documentation (Master File & Local File), and CA-certified Form 3CEB — filed by 31st October.
Mandatory for all AE international transactions
India has Double Taxation Avoidance Agreements with 90+ countries. We analyse the relevant DTAA article (India–UAE, India–USA, India–UK, India–Singapore, etc.) to determine applicable reduced withholding rates, exemptions, tax credits, and treaty benefits for dividends, royalties, interest, and fees for technical services. We also assist in obtaining Tax Residency Certificates (TRC) and Form 10F.
Covers 90+ DTAA Treaty Countries
We manage end-to-end FEMA and RBI compliance for Indian companies with foreign investment — FDI eligibility assessment, pricing norms, Form FC-GPR filing within 30 days of share allotment, Form FC-TRS for share transfers, Annual FLA Return (due 15th July), Overseas Direct Investment (ODI) filings, Entity Master registration on RBI's FIRMS portal, and RBI compounding applications for delayed filings.
FC-GPR must be filed within 30 days of FDI
Form 15CB is the CA-issued Tax Determination Certificate required before making foreign remittances exceeding ₹5 lakh to a non-resident where the payment is chargeable to tax. We certify the TDS rate, nature of payment, DTAA applicability, and chargeability — and assist in filing the corresponding Form 15CA online — so your authorised dealer bank can process the outward wire without delay.
Required for taxable foreign payments >₹5 Lakh
We provide comprehensive tax advisory for Non-Resident Indians and foreign expatriates working in India — residential status determination, ITR filing (ITR-2/ITR-3), DTAA benefit claims, Schedule FA (foreign asset disclosure), capital gains on Indian property with Section 54/54F exemption planning, lower TDS certificate under Section 197, and repatriation of funds via Form 15CA/15CB (up to USD 1 million/year under FEMA LRS).
NRIs from USA, UAE, UK, Canada, Singapore & more
For startups raising foreign investment or Indian companies expanding overseas — we handle the complete FEMA and RBI reporting lifecycle. This includes FDI valuation certificates (for unlisted companies), AD bank coordination, FC-GPR/FC-TRS submissions on RBI's FIRMS portal, Annual Performance Reports (APR), and strategic cross-border structuring advice for holding companies, subsidiary setups, and IP location planning.
End-to-end RBI & FIRMS portal compliance
Non-compliance with arm's length pricing under Section 92 of the Income Tax Act can trigger transfer pricing adjustments plus penalties of 100–300% of the additional tax under Section 271AA. All taxpayers entering into international transactions with associated enterprises must file Form 3CEB, regardless of transaction value.
Without proactive DTAA planning, the same income — dividends, royalties, interest, fees for technical services — can be legally taxed in both India and the foreign country. India's 90+ tax treaties provide specific exemptions and reduced rates that can significantly lower your effective global tax burden when claimed correctly.
FEMA violations — such as failure to file Form FC-GPR within 30 days of FDI share allotment or making unauthorised overseas remittances — attract penalties up to 3 times the sum involved. Late or incorrect FC-GPR filings during investor due diligence can also stall funding rounds and harm business credibility.
Remitting payments to non-residents without Form 15CB certification where aggregate payments exceed ₹5 lakh makes the Indian payer liable as an assessee in default under Section 201, including tax, interest, and penalty. Authorised Dealer banks will not process outward wire instructions without proper 15CA/15CB documentation.
Transfer Pricing refers to the pricing of goods, services, or intangible assets exchanged between related (associated) enterprises — where at least one party is a non-resident. Under Sections 92 to 92F of the Income Tax Act, all such international transactions must be conducted at arm's length. Form 3CEB is a mandatory CA-certified audit report under Section 92E and must be filed by all taxpayers who have entered into international transactions with associated enterprises, regardless of transaction value. For specified domestic transactions (SDTs), Form 3CEB applies only when the aggregate value exceeds ₹20 crore.
India has signed Double Taxation Avoidance Agreements with over 90 countries. These treaties specify which country has the primary taxing right over specific income types — dividends, royalties, interest, capital gains, and fees for technical services — and provide for reduced withholding tax rates or full exemptions. For example, the India–UAE DTAA can be used to reduce or eliminate Indian withholding tax on certain capital gains and dividends. To claim DTAA benefits, the non-resident must furnish a Tax Residency Certificate (TRC) and Form 10F. Our CA team analyses the specific treaty article applicable to your transaction and structures your payments for optimal treaty benefit.
No, Form 15CB is not required for every foreign remittance. It is mandatory when two conditions are simultaneously met: (1) the remittance is chargeable to tax in India, and (2) the aggregate of all remittances to the same non-resident during the financial year exceeds ₹5 lakh. For remittances under ₹5 lakh, only Form 15CA Part A is required. If the Assessing Officer has already issued an order under Section 195(2), 195(3) or 197, Form 15CB is not needed either. In practice, most vendor payments to foreign suppliers cross the ₹5 lakh threshold within a single quarter, making Form 15CB a recurring compliance requirement. Note: From 1st April 2026, remittances will be governed by the substituted Forms 145 and 146 under the Income-tax Rules, 2026.
FEMA violations attract strict penalties. For delayed FC-GPR filing (required within 30 days of FDI share allotment), the penalty is ₹5,000 or 1% of the total investment amount per day for the first six months. Delays beyond six months attract double penalties. Beyond financial penalties, unresolved FEMA violations can block profit repatriation, delay future FDI approvals, and surface as red flags during investor due diligence — potentially halting funding rounds. RBI compounding applications can regularise past violations, but timely prevention is always the better strategy. Our CA team sets up proactive monitoring to ensure all FEMA deadlines are met.
NRIs with Indian income require a wide range of CA services: residential status determination (which directly impacts taxability), ITR filing (ITR-2 for salary, rental, or capital gains; ITR-3 for business income), DTAA benefit application to reduce withholding tax, Schedule FA filing for foreign assets, capital gains planning on Indian property sale with Section 54/54F reinvestment exemptions, lower TDS certificate under Section 197, and fund repatriation via Form 15CA/15CB (up to USD 1 million per year under FEMA LRS). Common errors include missing Schedule FA, incorrect residential status assessment, and failing to claim DTAA benefits — all of which lead to excess TDS or penalties.
Transfer Pricing documentation typically takes 3 to 6 weeks depending on the complexity and number of international transactions. The process involves transaction mapping, identifying the most appropriate pricing method, sourcing comparable benchmarking data (often using PROWESS or Capitaline databases), preparing the Master File and Local File, and obtaining CA certification for Form 3CEB. Since the due date for Form 3CEB is 31st October, we recommend beginning the documentation process by August to allow adequate time for review and revisions. Early engagement also enables advance pricing strategies that reduce TP adjustment risk.
204, Pavan Complex, Jetalpur Rd, Vishwas Colony, Vadiwadi, Vadodara, Gujarat 390020