India | Tax & Regulatory | For private circulation only | 01 November 2017

Tax and Transfer Pricing Alert

Insight with information

India releases the final Issue no: TP/9/2017

rules on Country-by- In this issue:

Executive Summary
Country Reporting and Detailed discussion on the
Master File final rules on CbC reporting
and Master File
Key takeaways
Annexures
Do you know about Dbriefs?
Contacts
India has been one of the active members of the Base Erosion and Profit Shifting
(“BEPS”) initiative. To this effect, on May 5, 2016, India introduced core elements of
the Country-by-Country (“CbC”) reporting requirement and the concept of Master File
in the Indian Income Tax Act, 1961 (“the Act”) through Finance Act 2016, effective
from 1 April 2016.

To take the initiative forward, the Central Board of Direct Taxes (“CBDT”) on 6
October 2017 released draft rules providing detailed instructions for compliance
with CbC reporting and Master File requirements in India, which were open for
public comments till 16 October 2017. The CBDT has on 31 October 2017 released
the final rules on CbC reporting and Master File requirements in India (vide
notification no. 92/2017), incorporating few amendments and certain clarifications
to the draft rules.

Executive Summary
We have provided below a brief snapshot of the key provisions of the final rules:

A) Master File
a) Following entities are required to file the Master File in India (Form No.
3CEAA)
 Part A of Master File – Part A comprises of basic information relating to the
International Group (“IG”) and the constituent entities of the IG operating
in India (such as name, permanent account number and address). The final
rules have clarified that Part A of the Master File will be required to be filed
by every constituent entity of an IG, without applicability of any threshold;
 Part B of Master File – Part B comprises of the main Master File information
that provides a high level overview of the IG’s global business operations
and transfer pricing policies. Every constituent entity of an IG that meets
the following threshold will be required to file Part B of Master File:
‒ the consolidated group revenue for the accounting year exceeds INR
5,000 million (the draft rules had provided that this threshold is to be
determined considering the group revenue for the preceding
accounting year); and
‒ for the accounting year, the aggregate value of international
transactions exceeds INR 500 million, or aggregate value of intangible
property related international transactions exceeds INR 100 million.

b) The Master File information required to be submitted in India is largely

consistent with BEPS Action 13 requirements. However, few additional data
requirements have been incorporated in the final rules, requiring IGs to
customize their Master File for India.
 The following table summarizes the additional requirements released in the
final rules:

Master File Summary of OECD BEPS Additional requirements

Requirement Requirement as per Indian final rules

 Addresses of all
entities of the IG
 Chart illustrating IG’s legal
Organization and ownership structure (the draft rules had
structure and geographical location proposed submission
of operating entities of details of only
operating entities of
the IG)

 Description of important  Functions, assets

drivers of business profit and risk (“FAR”)
 Description of supply chain analysis of entities
for five largest contributing at least
products/services in terms 10% of the IG’s
of revenue and/or which revenue OR assets
Description of
contributes to more than OR profits
IG’s business
5% of IG’s revenues
 Functional analysis of the (the draft rules did
principal contributors to not clarify the
value creation manner for
 Important business application of the
restructuring transactions 10% threshold)

 Names and
addresses of all
 IG’s strategy for entities of the IG
ownership, development engaged in
and exploitation of development and
intangibles management of
 List of important intangible property
IG’s intangibles with ownership  Addresses of entities
Intangibles  Important agreements and legally owning
corresponding transfer important intangible
pricing policies in relation property and entities
to Research & involved in
Development (“R&D”) and important transfers
intangibles of interest in
intangible property

 Description of how the IG is

 Names and
financed, including
addresses of top ten
identification of important
unrelated lenders
financing arrangements
 Addresses of entities
IG’s with unrelated lenders
providing central
intercompany  Identification of entities
financing functions
financial performing central
including their place
activities financing function including
of operation and
their place of operation and
effective
effective management and
management
corresponding transfer
pricing policies

c) The final rules provide that the accounting year for which the Master File is
being submitted has to be specified in Part A of the Master File. This
requirement was not provided in the draft rules.
 d) The Master File has to be furnished by the due date of filing the income-tax
return i.e. 30 November following the financial year. However, for financial
year 2016-17 (“FY 2016-17”), the due date is extended to 31 March 2018.
e) IGs with multiple constituent entities in India can designate one Indian
constituent entity to file the Master File in India, provided an intimation to this
effect is made in Form No. 3CEAB, 30 days prior to the due date for filing the
Master File in India.

B) CbC report
a) The threshold for applicability of CbC reporting has been specified as
consolidated group revenue of INR 55,000 million in the preceding year.
b) The format of the CbC report (Form No. 3CEAD) is aligned with the BEPS
Action 13 template.
c) The due date for filing the CbC report in India continues to be the due date for
filing the income-tax return i.e. 30 November following the financial year.
However, for FY 2016-17, the due date is extended to 31 March 2018 (as per
the CBDT Circular 26/2017 released on 25 October 2017).

C) CbC report notification

a) Every Indian constituent entity of an IG headquartered outside India (“foreign
IG”) is required to file the CbC report notification in the prescribed format
(Form No. 3CEAC).
b) The “reportable accounting year” has to be specified in the Form No. 3CEAC.
This requirement was not earlier specified in the draft rules.
c) The CbC report notification is required to be filed atleast two months prior to
the due date for filing the CbC report, that is aligned to the due date for filing
the income-tax return of the Indian constituent entity. As mentioned above,
the due date for filing the CbC report for FY 2016-17 has been extended to 31
March 2018 and accordingly, the due date for the first CbC report notification
for FY 2016-17 has also been extended to 31 January 2018.
d) Currently no option has been provided for filing a consolidated CbC report
notification for multiple Indian constituent entities of a foreign IG.

Summary of new forms released in the final rules

The following forms are required to be filed electronically with the Director General
of Income Tax (Risk Assessment) within the prescribed due dates. The procedure
for electronic filing shall be prescribed subsequently

Particulars Purpose of Form Form No. Applicable to

Part A of Form No. 3CEAA –
Every constituent entity of an
IG (no threshold is
applicable)
Filing of the
3CEAA
Master File Part B of Form No. 3CEAA –
Every constituent entity of an
IG meeting the prescribed
Master threshold discussed above
File Intimation of
related designated Indian IGs having multiple
forms constituent entity 3CEAB constituent entities resident
of an IG in India
 Particulars Purpose of Form Form No. Applicable to

 Every Indian
constituent entity of
CbC report notification 3CEAC
a foreign IG

 Indian-
headquartered IG
 Indian constituent
entity of a foreign
IG designated as
CbC Alternate Parent
reporting entity
Filing of CbC Report 3CEAD  Indian constituent
related
entity of a foreign
forms IG required to
submit CbC report
in India under the
specified
circumstances

Intimation of designated
Foreign IG having
Indian constituent entity
multiple constituent
of foreign IG for filing 3CEAE
entities resident in
CbC report in India under
India
specified circumstances

Signatory to the CbC and Master File related forms

The final rules specify that the above Forms are required to be signed by the person
competent to verify the return of income (under section 140 of the Act) of the
entity. This requirement was not specified in the draft rules and has been
incorporated in the final rules.

Detailed discussion on final rules on CbC Reporting

and Master File
We have discussed below in detail the salient features of the final rules and insights on
CbC reporting and Master File related obligation in India, for an Indian constituent
entity.

1. Master File
As per BEPS Action 13 guidance, the Master File is intended to provide a high level
overview of the IG’s global business operations and transfer pricing policies. This
would enable tax authorities to place the IG’s transfer pricing practices in their
global economic, legal, financial and tax context. Thus, information submitted in
the Master File ought to provide a blueprint of the IG.
Section 92D of the Act was amended through the Finance Act 2016 to provide
for maintaining of the Master File by every constituent entity of an IG. The
detailed rules governing applicability, content, manner of furnishing the
information, due date, etc. were awaited.

In this regard, the draft rules provided the detailed instructions for compliance
with the Master File requirements in India, by constituent entities of an IG
(through insertion of rule 10DA in the Income-tax Rules, 1962 (“the Rules”)).
Pursuant to considering public comments received on the draft rules, the CBDT
has now released the final rules providing the following requirements and
instructions with respect to Master File compliance in India:

1.1. Applicability and threshold for Master File

A constituent entity of an IG is required to file the Master File in India with
effect from FY 2016-17. In this regard, the final rules prescribe a specific
format for furnishing the Master File i.e. Form No. 3CEAA. The Form No.
3CEAA comprises of the following two sections:

Part A of Form No. 3CEAA – This section is required to be submitted by

every constituent entity of an IG. The final rules have clarified that no
threshold is applicable for applicability of Part A of the Master File.

Part B of Form No. 3CEAA – Information under this section is required to

be furnished by the constituent entity of an IG, only where it meets the
following threshold:

 Consolidated group revenue of the IG in the accounting year exceeds

INR 5,000 Million [approx. USD 75 million/ Euro 65 million]. The draft
rules had provided that this threshold has to be determined considering
the group revenue for the preceding accounting year which is now
amended to current accounting year in the final rules. The final rules
clarifies that the exchange rate for calculating the consolidated group
revenue in rupees shall be the telegraphic transfer buying rate of such
currency on the last day of the accounting year; and
 The aggregate value of international transactions
‒ as per the books of accounts, exceeds INR 500 [approx. USD 7.5
million / Euro 6.5 million] during the accounting year or
‒ in respect of purchase, sale, transfer, lease or use of intangible
property during the accounting year, as per the books of accounts,
exceeds INR 100 million [approx. USD 1.5 million / 1.33 million].

1.2. Format and content of Master File

As mentioned above, the Master File is required to be furnished in Form

No. 3CEAA, comprising of Part A and Part B. The information required is as
follows:
Part A of Form No. 3CEAA - This section comprises of basic information
relating to the IG and constituent entities of the IG operating in India.
Information is required on:

a) Details of the IG such as name and address;

b) Details of all the constituent entities of the IG operating in India
providing name, permanent account number and address;
c) Details of the Indian constituent entity submitting the Master File in
Form No. 3CEBA; and

d) Accounting Year for which the report is being submitted. This

requirement was not earlier specified in the draft rules.
Part B of Form No. 3CEAA - This section comprises of the main Master
File information of the IG (that meets the prescribed Master File threshold
as discussed in para 1.1 above). As per the final rules, the information

required to be submitted under this section is aligned to Action 13 Master

file requirements. However, the final rules have prescribed few additional
information requirements in this section which are more specific and
detailed than the Action 13 requirements. The Master File information
required to be submitted under this section can be grouped under five
categories. We have discussed below the information requirements:

a) Organizational structure
This section is intended to provide the entire legal and ownership
structure of all the entities of an IG.
As per the draft rules, the details of only operating entities were
required to be provided. However, the final rules have now prescribed
that the details for all the entities of an IG are required be provided.

b) Description of IG’s business(es)

This section is intended to provide a brief description of the group’s
business, the important drivers of business profit along with an
understanding of the global supply chains activities of the IG and FAR
analysis of the principal contributors to value creation.

It is important to highlight that under this category, the final rules have
prescribed a specific requirement compared to Action 13 guidance. The
final rules have quantified that the FAR analysis be submitted for group
entities that contribute at least 10% of the revenues OR assets OR
profits of the IG, while Action 13 recommended analysis to be provided
only for principal contributions to value creation. As per the draft rules,
there was ambiguity with respect to the manner of application of the
threshold of 10%. The final rules have now clarified that the FAR
analysis is required to be submitted in cases where the 10% criteria is
satisfied for any one of the factors.
This clarification would be helpful to IGs as it provides specific guidance.
However this would be an additional requirement to be addressed while
preparing the Master File for India.

c) IG’s intangible property

This section intends to capture important information related to the IG’s
intangible property. Brief description of important intangible property of
the IG and the overall business strategy of the IG for development,
ownership and exploitation of such intangible property should be
provided.
It is important to highlight that in addition to the above Action 13
requirements, the Indian rules require a list of all entities engaged in
the development and management of intangible property and
addresses of entities legally owning important intangible property and
entities involved in transfer of interest in intangible property. Whereas,
Action 13 requires submission of only list of legal owners of important
intangible property for transfer pricing purposes. Accordingly,
irrespective of the ownership of the intangible property, the entities
involved in development and management of intangible property will
have to be disclosed. Hence, IG’s will have to gather and submit the
above additional information while preparing the Master File for India.
 It is pertinent to note that the term “intangibles” as referred earlier in
the draft rules has been replaced in the final rules with the
term ”intangible property”, in order to be consistent with the definition
provided under the Act.

d) IG’s intercompany financial activities

It is intended to capture a description of how the group is financed,
including important financial arrangements with unrelated lenders.
Additionally, the list of group entities providing central financing function
for the IG and description of transfer pricing policies related to financing
arrangements between group companies is also required to be provided.
It is important to highlight that in addition to the above Action 13
requirements, the Indian rules have quantified that with respect to the
financing arrangements of the IG, the names and address of the top ten
unrelated lenders are to be provided. Even though the clarification
would be helpful to the IGs in quantifying the list of important financing
arrangement with unrelated lenders, this would be an additional
requirement to be complied with by IGs while preparing the Master File
for India. Additionally, the Indian rules also require the addresses of the
group entities providing central financing function.

e) IG’s financial and tax positions

It is intended to cover the financial and tax position of the IG. The
information requirement under this category includes the annual
consolidated financial statement of the IG. Also, list and brief description
of existing unilateral advance pricing agreements (APAs) and other tax
rulings in respect of the IG relating to the allocation of income among
countries are to be provided.

Please refer to Annexure A of this alert for the detailed listing of the
information required to be submitted in the Master File (Form No.
3CEAA) as provided in the final rules.

The Form No. 3CEAA is required to be filed electronically with the

Director General of Income Tax (Risk Assessment).

1.3. Due date for furnishing the Master File

The information in Form No. 3CEAA is required to be furnished by the due

date for filing the income-tax return (i.e. 30th November following the
financial year). However, for submission of the Master File for the first year
(i.e. FY 2016-17), the due date has been extended to 31 March 2018.

1.4 Option for filing one Master File on behalf of all the Indian
constituent entities of an IG
The final rules provide the flexibility that where an IG has multiple
constituent entities in India, the Master File may be submitted by only one
of the constituent entities resident in India. The flexibility to provide one
Master File is available to both Indian-headquartered IGs and foreign IGs
and is also applicable for both parts of the Master File (Part A and Part B).
The IG would need to identify one of the constituent entities resident in
India as the designated entity and intimate the same to the Director
General of Income-tax (Risk Assessment) in the prescribed format (Form
No. 3CEAB). This intimation is required to be made by the designated
entity at least 30 days before the due date for filing the Master File.
The mode of filing the Form No. 3CEAB was not earlier specified in the
draft rules. However, the final rules provide that the Form No. 3CEAB is
 required to be filed electronically with the Director General of Income Tax
(Risk Assessment).

1.5 Signatory to Master File related forms

The final rules specify that the Master File in Form No. 3CEAA and the
intimation in Form No. 3CEAB is required to be signed by the person
competent to verify the return of income (under section 140 of the Act) of
the constituent entity. This requirement was earlier not provided in the
draft rules.

2. CbC Reporting requirements

2.1 CbC Report

The Finance Act 2016 introduced the requirement to file the CbC report in India
for the Indian-headquartered IGs. Indian constituent entities of a foreign IG are
also required to file the CbC report in India on satisfaction of certain specified
criterias/ conditions. The Finance Act however did not provide the detailed rules
relating to the practical implementation of the CbC reporting requirements,
including the form and manner of furnishing the information.
In this regard, the draft rules prescribed the detailed instructions for furnishing
of the CbC report in India through insertion of rule 10DB in the Rules. Pursuant
to considering public comments received on the draft rules, the CBDT has now
released the final rules providing the following requirements and instructions
with respect to CbC reporting requirements in India:

2.1.1 Applicability and threshold

The Act provided that the CbC reporting obligation would be applicable
for IGs whose consolidated group revenue for the preceding financial
year as reflected in consolidated financial statements exceeded the
threshold, as may be prescribed. The memorandum explaining the
introduction of the provision had indicated that the threshold would be
the INR equivalent of Euro 750 million, prescribed under Action 13. The
final rules have specified that the prescribed INR threshold for
applicability of the CbC reporting requirement would be consolidated
group revenue in excess of INR 55,000 million in the preceding financial
year. The final rules clarify that the exchange rate for calculating the
consolidated group revenue in INR shall be the telegraphic transfer
buying rate of such currency on the last day of the accounting year
preceding the accounting year.

2.1.2 Content and manner of submission of CbC report

The Act provided an overview of the data required to be included in the

CbC report. The memorandum explaining the provisions indicated that
the information required would be aligned to the Action 13 model
template for the CbC report. However, the Act or the memorandum did
not provide any details, data definitions or format of the CbC report,
which were specifically provided under the BEPS Action 13 guidance.
In this respect, the final rules have released the prescribed format
(Form No. 3CEAD) in which the CbC report has to be filed. The Form No.
3CEAD is similar to the Action 13 CbC report template.

It is pertinent to note that the business activity of ‘Administrative,

Management and Support services’ was not earlier included in the
format of Part B of the CbC report provided in the draft rules. The final
 rules have now incorporated this business activity in Part B of the CbC
report, to align with the Table 2 of the Action 13 model template.

Please refer to Annexure B of this alert for the format of the CbC report
released in the draft rules.

Form No. 3CEAD also provides definitions of the data points required to
be reported in the CbC report, including the list of specific inclusions or
exclusions. These data definitions are identical to the original definitions
provided under the final Action 13 guidance (released in October 2015).
The OECD has subsequently released additional implementation
guidance providing more clarifications in respect of the data definitions.
However, this additional guidance on data definitions has not been
incorporated in the final rules.

The CbC report in Form No. 3CEAD is required to be furnished

electronically, for every reporting accounting year, to the Director
General of Income-tax (Risk Assessment).

Further, in order to facilitate the uniform implementation of CbC

reporting and for automatic exchange of CbC reports between
competent authorities, the OECD had released the CbC XML (extensible
mark-up language) schema and related user guide. In this regard, the
final rules provide that the procedure for electronic filing of the Form No.
3CEAD shall be specified subsequently. Accordingly, it is expected that
the XML utility for furnishing the CbC report in India will be released
shortly.

2.1.3 Due date for submission of CbC report

As per provisions of the Act, Indian-headquartered IGs are required to
file the CbC report on or before the income-tax return filing date i.e. 30
November following the financial year. This due date is much earlier
than the BEPS Action 13 recommended timeline of 12 months from the
last day of the reporting financial year of the IG and it was expected
that the Indian tax authorities could release a specific notification
extending the due date for submission of the CbC report in India.

The CBDT has now extended the due date for filing the CbC report for
the FY 2016-17 to 31 March 2018, vide Circular 26/2017 dated 25
October 2017.

2.1.4 Regulations in relation to CbC report filing requirements for the

Indian constituent entity of a foreign IG
The Act also provided that a constituent entity resident in India of a
foreign IG would be required to furnish the CBC report in India under
specific circumstances (provided under Section 286 (4)). As per the Act,
the Indian constituent entity will be required to furnish the CbC report in
India if the parent entity is resident of a country or territory –
a) with which India does not have an agreement providing for
exchange of the CbC report; or

b) there has been a systemic failure of jurisdiction of reporting entity

in sharing the CbC report and the said failure has been intimated
has been intimated by the prescribed authority to Indian constituent
entity.
The final rules specify that the due date of submission of CbC report
(Form No. 3CEAD) by the income-tax return filing due date is also
applicable to Indian constituent entities obligated to file the CbC report
in India under the above circumstances. Considering that the due date
 for filing the CbC report for FY 2016-17 in relation to section 286(2) is
extended to 31 March 2018, the due date for filing the CbC report for FY
2016-17 by Indian constituent entities of a foreign IG under the above
circumstances has also been extended to 31 March 2018.

The final rules also provide that where there are multiple Indian
constituent entities of a foreign IG (that is required to file the CbC report
in India under the above circumstances), the foreign IG can designate
one constituent entity in India to furnish the CbC report in India. The IG
would be required to intimate the designated entity to the Director
General of Income-tax (Risk Assessment) in Form No. 3CEAE. It is
pertinent to note that the rules have not provided the due date for filing
the intimation in Form No. 3CEAE.

2.2 CbC report notification

The Finance Act 2016 introduced an obligation on the Indian constituent
entities of a foreign IG, to notify the details of its parent entity or its alternate
reporting entity to the Indian authorities. However, the detailed rules
providing the form and manner of notification, contents and the filing due
date were awaited.

In this regard, the final rules provide following requirements with respect to
CbC report notification:

2.2.1 Contents and manner of submission of the CbC report

notification

The final rules have prescribed the format in which the above
notification has to be filed (Form No 3CEAC). The notification is required
to provide the following details:

 Details of the Indian constituent entity such as name, address and

permanent account number;
 Name of the foreign IG;
 Details of the parent entity such as name, address and country of
residency;
 Details of the alternate reporting entity, if applicable such as name,
address and country of residence; and
 Reportable accounting year is also required to be submitted in the
notification. This requirement was not specified earlier in the draft
rules.

As per the Indian final rules, the CbC notification form in Form No.
3CEAC is required to be submitted electronically to the Director General
of Income-tax (Risk Assessment). The Indian rules have not provided an
option of filing a consolidated CbC notification for multiple Indian
constituent entities of an IG.

2.2.2 Due date for submission of the CbC report intimation

The Indian final rules prescribed the CbC notification to be filed two
months prior to the due date of filing the CbC report, which is the due
date for filing the income-tax return of the Indian Constituent Entity.

As mentioned above, the due date for filing the CbC report for FY 2016-
17 has been extended to 31 March 2018. Therefore, the due date for the
first CbC report notification for FY 2016-17 has also been extended to
31 January 2018.
 2.3 Signatory to CbC report related forms

The final rules specify that the CbC report related forms (Form No. 3CEAC,
Form No. 3CEAD, and Form No. 3CEAE) are required to be signed by the
person competent to verify the return of income (under section 140 of the
Act) of the entity. These signatory requirements were not specified earlier in
the draft rules.

3. Local File
The local file requirements recommended under Action 13 are to great extent
similar to information and documents required under section 92D (1) of the Act
read with Rule 10D of the Rules. Action 13 has recommended few additional
information requirements. However, the Indian rules have not introduced any
additions to the contents of the existing local transfer pricing documentation
requirements in India to align with Action 13 local file requirements.

Adequate safeguards in place to maintain confidentiality of information:

As recommended by Action 13, the rules provide that adequate safeguards will be
implemented to protect the confidential (trade secrets, scientific secrets, etc.) and
other commercially sensitive information received by way of the CbC report and the
Master File.

Further, the rules provide that the Principal Director General of Income-tax
(Systems) or Director General of Income-tax (Systems), as the case may be, shall
specify the procedure for electronic filing of Form No. 3CEAA, Form No. 3CEAB,
Form No. 3CEAC, Form No. 3CEAD and Form No. 3CEAE. They will also be
responsible for evolving and implementing appropriate security, archival and
retrieval policies in relation to information furnished under the above-mentioned
forms.

Key takeaways
The final rules on CbC reporting and Master File requirements in India are significantly
aligned with BEPS Action 13 guidance, reflecting India’s commitment to global
consistency. It is imperative to mention that there are various aspects of the rules
that will have specific India implications and will also need clarifications and additional
information. The final rules incorporate various clarificatory amendments to the draft
rules and there are not many noteworthy modifications to the draft rules.

Further, given that as per the rules, the Indian transfer pricing documentation
requirements are relatively prescriptive, the tight timelines could pose a practical
challenge for IGs, though some respite has been provided for the first year i.e. FY
2016-17 by extending the due date for filing of CbC report and Master File to 31 March
2018. Also, with respect to the Master File, the Indian final rules provide a staggered
threshold. Comparatively, it is observed that the IGs’ global revenue threshold (i.e.
INR 5,000 million) and the international transactions threshold (i.e. INR 500 million)
provided in the rules is much lower than the threshold limit provided by few countries
(Australia, Germany, Japan, China). However, there are other countries (Netherlands,
Spain, Mexico, Peru) that have prescribed a threshold much lower than India. The low
threshold for Master File in India could increase the compliance burden for IGs. Also
for many IGs, the new requirements will necessitate greater level of global
coordination, detailed analysis of considerable information not currently readily
available. Thus, the Indian rules would significantly increase the Indian compliance
obligations for the constituent entities in India, especially for foreign IGs. Accordingly,
it is vital for such Indian constituent entities to evaluate their preparedness and take
appropriate action for compliance with these new obligations in India.
Annexures
Annexure A - Contents of Part B of Form No. 3CEAA (Master File)

Organizational structure
1. List of all the entities of the IG with their addresses
2. Chart depicting the legal status of the constituent entities and ownership structure of the
entire IG.

Description of IG’s business

3. General written description of the IG’s business including:

(i) The nature of business or businesses;

(ii) Important drivers of profit of such business or businesses;
(iii) Description of the supply chain for the group’s five largest products and/ or service
offerings by revenue and any other products and/or services amounting to more
than 5 percent of consolidated group revenue;
(iv) Important service arrangements (other than research and development (R&D)
services);
(v) Description of the capabilities of main service providers within the IG;
(vi) The transfer pricing policies for allocating service costs and determining prices to be
paid for intra group services;
(vii) List and description of the major geographic markets for the products and services
offered by the international group;
(viii) The functional analysis of the group companies that contribute ten percent or more
to the revenue OR assets OR profits of the IG;
(ix) Description of important business restructuring transactions, acquisitions and
divestments

IG’s intangibles

4. Description of the overall strategy of the IG for the development, ownership and
exploitation of intangibles property, including location of principal R&D facilities and
their management;
5. List of all entities of the IG engaged in development of intangibles property and in
management of intangibles property along with their addresses;
6. List of all important intangibles property or groups of intangible property owned by the
IG along with the name and addresses of group entities legally owning such intangible
property;
7. List and brief description of important agreements among the member of IG relating to
intangible property, cost contribution, R&D and licenses agreements;
8. Description of the group’s transfer pricing policies related to R&D and intangible
property;
9. Description of important transfers of interests in intangible property and compensation
involved

IG’s intercompany financial activities

10. Description of financing arrangements of IG including the name and addresses of the
top ten unrelated lenders
11. List of entities that provide central financing functions, including their addresses of
operation and place of effective management
12. Description of transfer pricing policies related to financing arrangements

IG’s financial and tax positions

13. A copy of the IG’s annual consolidated financial statement for the financial year
concerned;
14. A list and brief description of the existing unilateral APAs and other tax rulings in respect
of the IG for allocation of income among countries
Annexure B – Format for CbC reporting

FORM No. 3CEAD

[See rule 10DB]
COUNTRY-BY-COUNTRY REPORT

Report by a parent entity or an alternate reporting entity or any other constituent

entity, resident in India, for the purposes of sub section (2) or sub-section (4) of
section 286 of the Income-tax Act, 1961

Name of the reporting entity

PAN of the reporting entity
Address of the reporting entity
Whether the reporting entity is the parent entity of the
international group

PART A – OVERVIEW OF ALLOCATION OF INCOME, TAXES AND BUSINESS ACTIVITIES

BY TAX JURISDICTION

PART B – LIST OF ALL THE CONSTITUENT ENTITIES OF THE MULTINATIONAL

ENTERPRISES GROUP INCLUDED IN EACH AGGREGATION PER TAX JURISDICTION

PART C: ADDITIONAL INFORMATION

Name of the Multinational Enterprise group:

Reportable accounting year:

Please include any further brief information or explanation you considered necessary or that would facilitate the
understanding of the compulsory information provided in Part A and Part B (e.g. Source of Data)
 Do you know about Dbriefs?

Dbriefs are live webcasts that give valuable insights on important

developments affecting your business. To register, visit the Dbriefs
page

Contacts
Ahmedabad Bangalore Chennai
19th Floor, Shapath - V Deloitte Centre, Anchorage II, No.52, Venkatanarayana Road,
SG Highway, 100/2, Richmond Road, 7th Floor, ASV N Ramana Tower,
Ahmedabad – 380 015. Bangalore 560 025. T-Nagar,
Tel: + 91 (079) 6682 7300 Tel: +91 (080) 6627 6000 Chennai 600 017.
Fax: + 91 (079) 6682 7400 Fax: +91 (080) 6627 6010 Tel: +91 (044) 6688 5000
Fax: +91 (044) 6688 5050

Coimbatore Delhi/Gurgaon Hyderabad

Shanmugha Manram Building 10, 1-8-384 and 385, 3rd Floor,
41, Race Course, Tower B, 7th Floor, Gowra Grand S.P.Road,
Coimbatore DLF Cyber City, Begumpet,
Tamil Nadu - 641018 Gurgaon 122 002 Secunderabad – 500 003.
Tel: + 91 (0422) 439 2801 Tel : +91 (0124) 679 2000 Tel: +91 (040) 6603 2600
Fax: +91 (0422) 222 3615 Fax : + 91 (0124) 679 2012 Fax:+91 (040) 6603 2714

Kolkata Mumbai Pune

Bengal Intelligent Park Building Indiabulls Finance Centre, 106, B-Wing, 7th Floor,
Alpha, 1st floor, Block EP and GP Tower 3, 28th Floor, ICC Trade Tower,
Sector V, Salt Lake Electronics Elphinstone Mill Compound, Senapati Bapat Road,
Complex, Senapati Bapat Marg, Elphinstone Pune – 411 016.
Kolkata - 700 091. (W), Tel: + 91 (020) 6624 4600
Tel : + 91 (033) 6612 1000 Mumbai – 400013 Fax: +91 (020) 6624 4605
Fax : + 91 (033) 6612 1001 Tel: + 91 (022) 6185 4000
Fax: + 91 (022) 6185 4101

Deloitte makes an impact that matters

Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network
of member firms, each of which is Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company
limited by guarantee (“DTTL”), its network of member firms, and their related entities. DTTL and each of its member firms are
legally separate and independent entities. DTTL (also referred to as “Deloitte Global”) does not provide services to clients. Please
see www.deloitte.com/about for a more detailed description of DTTL and its member firms.

This material and the information contained herein prepared by Deloitte Touche Tohmatsu India LLP (DTTI LLP) is intended to
provide general information on a particular subject or subjects and is not an exhaustive treatment of such subject(s). This
material contains information sourced from third party sites (external sites).
DTTI LLP is not responsible for any loss whatsoever caused due to reliance placed on information sourced from such external
sites. None of DTTI LLP, Deloitte Touche Tohmatsu Limited, its member firms, or their related entities (collectively, the “Deloitte
Network”) is, by means of this material, rendering professional advice or services. This information is not intended to be relied
upon as the sole basis for any decision which may affect you or your business. Before making any decision or taking any action
that might affect your personal finances or business, you should consult a qualified professional adviser.

No entity in the Deloitte Network shall be responsible for any loss whatsoever sustained by any person who relies on this
material.

©2017 Deloitte Touche Tohmatsu India LLP. Member of Deloitte Touche Tohmatsu Limited