Form 3CEDA

Relevant Statute

• Section 92CC of the Income-tax Act, 1961
• Rule 10MA of the Income-tax Rules, 1962

Legal Provision

• Rule 10MA provides that the APA may determine the arm’s length price (ALP), or specify the manner of determining ALP for international transactions in the rollback years. Rollback year means any of the four years preceding the first year to which the APA applies (maximum of 4 years).
• The international transaction must be the same as the one covered under the APA. The return of income for the relevant rollback year must be filed before the due date under section 139(1).
• The transfer pricing report under section 92E must be filed for each rollback year. The rollback must be applied to all years in which the international transaction was undertaken.
• Rollback not permissible if the ALP determination of that international transaction was subject to appeal before the ITAT and the appeal has been disposed of before the signing of the APA. Also, a rollback reduces total income or increases loss as declared in the return of income.
• If rollback specifies the manner in which ALP is to be determined, such manner must be identical to the method agreed upon for the APA years (non-rollback years). The effect of rollback must be given in accordance with Rule 10RA of the Income-tax Rules.

Applicable For:

• Any person entering into an APA under section 92CC, who seeks to apply the APA’s terms to preceding years through the rollback mechanism.

Effective From:

Pre-requisite While Filing the Form

• Not applicable

Due Date

• Not applicable

How to file it