Do I file Form 3CEAE even if no tax is owed?
Information return obligations of this kind are generally required on the facts rather than on the tax result, so a nil position does not remove one. Groups with multiple Indian constituent entities within country-by-country reporting.
What happens if I have missed Form 3CEAE for several years?
Missed years are dealt with as a package rather than one at a time, because the route chosen for the first year affects the relief available for the rest. We map the years and the obligations before anything is filed.
Is Form 3CEAE the same as the other reports I already file?
No. The designation of the Indian entity that will discharge the group's country-by-country obligation. Satisfying a different obligation, even one covering the same accounts or entity, does nothing for this one.
Why would a group with several Indian entities need to file Form 3CEAE?
Because without a formal designation naming which Indian entity discharges the group's country-by-country obligation, more than one entity can end up exposed to the same filing requirement, or none of them properly discharges it because each assumes another is responsible. The designation resolves that by naming one entity clearly.
Is Form 3CEAE the same as Form 3CEAB?
No — Form 3CEAB is the intimation for the master file obligation, while Form 3CEAE is the equivalent designation for the country-by-country reporting obligation. A group can need one, the other, or both, depending on which obligations apply to it, and treating them as interchangeable is a common source of a filing gap.
What happens if none of a group's Indian entities is formally designated?
Each Indian constituent entity potentially remains individually exposed to the country-by-country filing default, since there is no designation on record limiting the obligation to one of them. That default exposure applies whether or not any entity actually believed itself to be handling the obligation informally.
Can the designation under Form 3CEAE be made for future years in advance?
It is generally addressed for the relevant reporting period as it comes up, since the group's structure and the appropriate designated entity can change year to year, and a designation is only reliable if it reflects the group as it currently stands rather than an arrangement fixed years earlier.
What are the transfer pricing methods?
Five, in two groups. Three compare transactions: comparable uncontrolled price, resale price, and cost plus. Two compare profits: the transactional net margin method, and profit split. The OECD asks for the most appropriate method on the facts rather than a fixed hierarchy; the United States applies a best-method rule to similar effect. Selection is itself a documented judgment, and a method chosen without recording why is a weak position under audit. See our transfer pricing work.
How does a remittance actually work, and is it taxed?
A remittance is a transfer of money, not a category of income, and moving your own funds between your own accounts is not what creates tax. What can create tax is the income behind the money and the rules of the country it leaves. India, for instance, collects tax at source when a resident individual remits abroad under the Liberalised Remittance Scheme, and requires certification before certain payments leave. The transfer is the trigger for paperwork rather than for tax. See the LRS and tax collected at source.
