Form 3CED, Download Income Tax Form 3CED in PDF Format

FORM NO. 3CED Application for an Advance Pricing Agreement. FORM NO. 3CED application is filled by assessee for the negotiation of Advance Pricing Agreement Advance Pricing Agreement.

(1) Any person, who has entered into a pre-filing consultation as referred to in rule 10H may, if desires to enter into an agreement furnish an application in Form No. 3CED along with the requisite fee.

(2) The application shall be furnished to Director General of Income-tax (International Taxation) in case of unilateral agreement and to the competent authority in India in case of bilateral or multilateral agreement.

(3) Application in Form No. 3CED may be filed by the person referred to in rule 10G at any time—

  (i) before the first day of the previous year relevant to the first assessment year for which the application is made, in respect of transactions which are of a continuing nature from dealings that are already occurring; or

 (ii) before undertaking the transaction in respect of remaining transactions.

(4) Every application in Form No. 3CED shall be accompanied by the proof of payment of fees as specified.

(5) The fees payable shall be in accordance with following table.

Amount of international transaction entered into or proposed to be undertaken in respect of which agreement is proposed during the proposed period of agreement.

Fee

Amount not exceeding Rs. 100 crores

10 lacs

Amount not exceeding Rs. 200 crores

15 lacs

Amount exceeding Rs. 200 crores

20 lacs

Amount of international transaction entered into or proposed to be undertaken in respect of which agreement is proposed during the proposed period of agreement.

Fee

 

FORM NO. 3CED

[See sub-rule (1) of rule 10-I]

Application for an Advance Pricing Agreement

To,

The Competent Authority of India

or

Director General of Income-tax (International Taxation)

New Delhi

Sir/Madam,

This is to state that___________________.(Name of the Applicant)___________________wishes to negotiate an APA with the Central Board of Direct Taxes. I am submitting herewith the necessary particulars hereunder:

I. General

1.

Particulars of the applicant:

    a.    Full name of the applicant:

    b.    Permanent account number:

    c.    Address of the applicant:

    d.    Address for communication:

    e.    Location(s) of the business enterprises in India:

    f.    E-mail Id and the contact numbers of the person with whom correspondence is required to be made:

    g.    Names and designation of the authorised representatives who would be appearing before the authorities for negotiations of the APA:

2.

Whether pre-filing discussions were sought by the applicant? If yes, please furnish:

    a.    Date of application for pre-filing meeting:

    b.     Date of pre-filing meeting(s) with the APA Team:

3.

Name(s) of the Associated Enterprises with whom the APA is requested for:

4.

Name of the country(ies) in which the associated enterprises mentioned in (3) above are located:

5.

    a.    Are you applying for a Unilateral, Bilateral or Multilateral APA:

Unilateral

Bilateral

Multilateral

    b.    If you are applying for a Bilateral or Multilateral APA, have the Associated Enterprises applied for APA with the Competent Authority in the country of its residence?

Yes

No


    c.    If yes, enclose evidence of furnishing such application with the other Competent Authority:

    d.    If no, by what date the application is proposed to be furnished to the other Competent Authority:

    e.    If the application is for Unilateral APA and it involves international transactions with an entity located in a jurisdiction with which India has an agreement under section 90 or 90A of the Act for avoidance of double taxation, kindly provide explanation for why the request is not for bilateral or multilateral APA.

 

6.

Particulars of fee paid by the applicant:

Amount in Rs.

Challan No. :

Dated:

7.

Period of APA proposed along with the date from which APA is sought to be applicable:

8.

Details of the international transactions proposed to be covered in the APA (Description of the property or services to which the proposed APA relates):

9.

Proposed Transfer Pricing Method(s):

10.

Proposed terms and conditions, and critical assumptions, for the APA:

11.

History and background of the applicant and the associated enterprise:

12.

General description of business and products/services:

13.

Multinational structure, organizational arrangement, operational set-up, including major transaction flows:

14.

Identify all other transaction flows of the multinational enterprise (volumes, directions and amounts) that may have an impact on the pricing of the covered transactions:

15.

Functional currency for each entity and the currency which is used for the proposed transactions to be covered under the APA:

16.

Accounting and costing system, policies, procedures, and practices, including any significant financial and tax accounting differences that may affect the TPMs:

 

II. Functional analysis
17.

Detailed functional analysis of the applicant and all relevant entities with respect to the covered transactions:

18.

Business strategies – current and future Budget statements, projections and business plans for future period covered by proposed APA, general business and industry trends, future direction/business strategy including R&D, production and marketing:

19.

Financial and operating information, including corporate annual reports: (Please enclose copies)

    a.    Financial statements on a consolidated and unconsolidated basis for the prior five years, or the most recent business cycle as appropriate (Also provide interim statements for the most recent period prior to the date of the submission):

    b.    Income-tax returns and related supporting schedules for the prior three years including Form 3CEB:

    c.    Operating data (gross and net) segmented by product line, division, unit, and geographic region for the prior five years, or the most recent business cycle as appropriate:

20.

Relevant marketing and financial studies: (Please enclose copies)

21.

Copies of all relevant inter-company agreements (pricing, cost sharing, licensing, distributorship etc.): (Please enclose copies)

III. Industry and market analyses
22.

Detailed industry analysis:

    a.    Comprehensive description of industry as well as generally accepted industrial and commercial practices:

    b.    Identification and general profile of competitors, including respective market shares:

    c.    Industry and general business statistics, financial ratios, and analyses/studies:

    d.    Critical success factors:

23.

Detailed analysis of the markets for all countries involved:

 

IV. Transfer pricing background
24.

Discussion of relevant legal considerations and requirements as per:

    a.    Indian law

    b.    Foreign law

    c.    Income-tax treaty between India and the foreign country

25.

Discussion of transfer pricing methodologies, policies, and practices used by the applicant and associated enterprises for the covered transactions during the past three years, or business cycle as appropriate:

26.

Discussion of relevant rulings, APAs/BAPAs/MAPAs, and other similar arrangements entered into with foreign tax administrations, for transfer pricing or other valuation bases, or other taxation matters entered into by the applicant (or its associated enterprises) and Indian or foreign tax administrations:

 

27.

Discussion of relevant Indian income-tax audit, appeals, judicial and competent authority history:

28.

Discussion of relevant foreign income-tax audit, appeals, judicial and competent authority history:

29.

Discussion of un-assessed taxation years (Indian and foreign) and related outstanding tax, legal and other pertinent issues:

V. Transfer Pricing Methodology analysis
30.

Provide all information, including detailed analyses and explanations needed to establish the appropriateness of a proposed TPM, in accordance with transfer pricing regulations as contained in the Indian Income-tax law:

31.

Discussion and analysis of each transfer pricing method, applied or rejected, for each covered transaction. In particular provide details on accepted or rejected internal comparables. (Indicate assumptions, strategies and policies that may have influenced the acceptance or rejection of each TPM):

32.

Summary of selected TPMs and secondary TPMs, if used as a sanity check:

VI. Impact of proposed TPMs
33.

Application of the proposed TPMs to the covered transactions for the three prior years’ operations or the most recent business cycle, and discuss results:

34.

Application of the proposed TPMs to the time period applicant wants the APA to cover and discuss results:

 

35.

Discussion and quantification of the variance, if any, from the methodology applied in section IV:

I declare that to the best of my knowledge and belief, the information furnished in the application is correct and truly stated.

Place:

Yours faithfully,

Date:

Applicant

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