Form 3CE

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Sanjay (Querist)
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30 October 2009 Dear Experts
(1) What is Form 3CE?
(2) Is it applicable to all Professional or ONLY NRI Professional having Fixed/ Permanent Business place in India?
(3)Do there is any relation of TAX AUDIT with Form 3CE?
Thank u all.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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01 November 2009 Audit Report in Form 3CE is prescribed for
non corporate non-resident or foreign companies receiving Royalty Income or Fees for Technical Services from Govt or an Indian Concern in pursuance of agreements entered into after 31.3.2003.

Tax Audit is covered by Section 44AB and
criteria for the same is turnover/or receipts.
Form 3CE Audit Report is specifically prescribed U/s 44DA(2) and does not have any limit as regards to turnover/ receipts.

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Sanjay

Sanjay (Querist)
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03 November 2009 Thanx for reply Bafna Ji.

But, I m keeping this query Open for further discussion of Section 44DA(2).

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Asha Kanta Sharma

Asha Kanta Sharma

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25 July 2024 Form 3CE refers to a set of forms under the Income Tax Act, specifically used for reporting certain international transactions and specified domestic transactions. Here are the answers to your questions:

1. **What is Form 3CE?**
- Form 3CE consists of various forms used to report international transactions and specified domestic transactions under section 92E of the Income Tax Act, 1961. The purpose of these forms is to ensure compliance with transfer pricing regulations and to provide information about transactions between associated enterprises or related parties.

2. **Applicability of Form 3CE:**
- Form 3CE is generally applicable to all persons who enter into international transactions or specified domestic transactions with associated enterprises or related parties. It is not specifically limited to Non-Resident Indians (NRIs) alone. Any person, whether resident or non-resident, who is engaged in such transactions needs to comply with the requirements of Form 3CE if the transaction thresholds specified in the Income Tax Act are met.

3. **Relation to Tax Audit:**
- Yes, there is a relationship between Form 3CE and tax audit. If a taxpayer is required to obtain a tax audit under the Income Tax Act (commonly under section 44AB), and if the taxpayer has entered into specified transactions with related parties or international transactions that require transfer pricing compliance, then they are also required to submit Form 3CE along with their tax audit report (Form 3CD).
- Form 3CD, which is a part of the tax audit report, includes information about compliance with various provisions of the Income Tax Act, including reporting of international transactions under section 92E using Form 3CE.

In summary, Form 3CE is used to report international transactions and specified domestic transactions under transfer pricing regulations. It applies to all taxpayers, not just NRIs, who engage in such transactions as per the thresholds specified in the Income Tax Act. It is linked to tax audit requirements as it forms a part of the compliance reporting under the tax audit report (Form 3CD).