Country-by-Country Reporting (CbCR) in India: Who Must File and When

Country-by-Country Reporting (CbCR) in India is a tax reporting requirement for large multinational groups with consolidated revenue exceeding ₹ 6,400 crore. It requires the relevant reporting entity to furnish country-wise revenue, profits, taxes, employees and other economic activity to tax authorities.

Born out of the OECD’s landmark BEPS Action 13 project, Country-by-Country Reporting (CbCR) is the third tier of modern global transfer pricing documentation.

This Master Brains’ CbCR article focuses on CbCR in India, including the CbCR India threshold of ₹ 6,400 crores, who has to file CbCR in India, CbCR due date India, Forms 3CEAC/3CEAD/3CEAE and Forms 58/59/60, comparison between local file, master file and CbCR and penalties for CbCR non-compliance.

Key Takeaways

• CbCR Threshold: Consolidated group revenue must exceed ₹ 6,400 crore.
• Who files CbCR: Indian Parent Entity/ARE or an Indian Constituent Entity where CbCR filing applies.
• CbCR forms: Form 3CEAC/58 for notification, 3CEAD/59 for CbCR and 3CEAE/60 for designating one Indian constituent entity where local filing applies to multiple Indian constituent entities.
• CbCR due date: Generally within 12 months from the end of the reporting accounting year.
• CbCR penalty: ₹ 5,000/day for the first month, ₹ 15,000/day thereafter and ₹ 50,000/day if the default continues after a penalty order. Inaccurate reporting in CbC Report can attract ₹ 5 lakh in the three specified cases under section 271GB(4) of the 1961 Act / section 459(4) of the 2025 Act.

CbCR Applicability at a Glance

1. What is Country-by-Country Reporting (CbCR)?

Country-by-Country Reporting (CbCR) is a reporting system under Organization for Economic Co-operation and Development (OECD) Base Erosion and Profit Shifting (BEPS) Action 13 that requires multinational groups to provide tax authorities with a jurisdiction-wise overview of their global activities. It is a part of the transfer pricing documentation framework.

2. CbCR Statutory Framework in India

Source: ITD-Simplified Tax Form Series

Effective from 1 April 2026 (FY 2026–27 / AY 2027–28), the Income-tax Act, 2025 and Income-tax Rules, 2026 apply to CbCR, whereas the provisions under the Income-tax Act, 1961 and Income-tax Rules, 1962 continue to apply to tax years beginning before 1 April 2026.

Master Brains is a Delhi-based CA firm providing CbCR, transfer pricing and international tax advisory services to businesses.

3. Why CbCR Exists

In the past, each country’s tax department could only see a small slice of financial data inside its own borders. Tax authorities had no easy way to check if multinational companies were shifting their profits to zero-tax countries (like tax havens) to avoid paying taxes.

To solve this, the OECD introduced CbCR as part of its BEPS Action 13 project, an aggregate report every year for all group entities.

This information can be used for risk assessment and selection of cases for further examination. The OECD specifically says that tax administrations use CbCR data in tax-risk assessment and assurance. 

For understanding Transfer Pricing compliance, see our complete guide to transfer pricing documentation.

4. Learn CBCR Terms

A. International Group: A group that includes two or more enterprises resident in different countries or territories, or an enterprise operating in another country through a Permanent Establishment (PE). {Sec 286(9)(g), Act 1961 & Section 511(10)(g), Act 2025}

B. Constituent Entity (CE): A separate entity of an international group that is included, or could be included, in the group’s consolidated financial statements. It can also include entities excluded in CFS due to materiality and Permanent Establishments. {Sec 286(9)(d), Act 1961 & Sec 511(10)(d), Act 2025}

C. Parent Entity: The top-level parent company (Ultimate Parent Entity) that controls the entire international group and is required to prepare consolidated financial statements. {Sec 286(9)(h), Act 1961 & Sec 511(10)(h), Act 2025}

D. Alternate Reporting Entity (ARE): A constituent entity chosen by the group to file the CbCR on behalf of the Ultimate Parent in a designated country. {Sec 286(9)(c), Act 1961 & Sec 511(10)(c), Act 2025}

E. Reporting Accounting Year: The accounting year for which the group’s financial and operational results are required to be reported in the CbCR. {Sec 286(9)(j), Act 1961 & Sec 511(10)(j), Act 2025}

F. Systemic Failure: A situation where a tax jurisdiction has an agreement with India for CbCR exchange but has stopped automatic exchange or persistently fails to provide the CbCR to India. {Sec 286(9)(l), Act 1961 & Sec 511(10)(l), Act 2025}

{Act refers to the Income-tax Act.}

Know about Smart Transfer Pricing Strategies

5. What is the CbCR threshold in India?

CbCR only targets qualifying large MNEs.  

• Global Threshold: Group revenue greater than € 750 million.
• Indian Threshold: Consolidated group revenue greater than ₹ 6,400 crore in the preceding accounting year.

Foreign Currency Conversion for CbCR under Rule 10DB (7): Where the international group’s consolidated revenue is reported in a foreign currency (USD, EUR, GBP), it is converted into Indian Rupees using the Telegraphic Transfer Buying Rate (TTBR) on the last day of the accounting year preceding the accounting year.

6. Who Must File CbCR in India?

After crossing threshold, following situation can happen:

CASE A: Indian Parent Company

If the Ultimate Parent Entity of the multinational group is resident in India:

1. Filing Form: CbC Report (Form 3CEAD under Act 1961 / Form 59 under Act 2025)
2. Timeline: Within 12 months from the end of the reporting accounting year.

CASE B: Indian Constituent Entity of a Foreign Parent 

The Indian constituent entity has to:

Step 1: Initial Notification (Always Mandatory)

Every Indian constituent entity of a foreign group must notify Indian tax authorities about who their parent entity/ARE is and where it resides.

• Filing Form: Form 3CEAC (Act 1961) / Form 58 (Act 2025).
• Timeline: At least 2 months prior to the due date of filing the main CbC Report.

Step 2: Main Filing in India: Section 286(4)/Section 511(4), subject to the ARE exception under Section 286(5) / Section 511(6)

The Indian entity must file the main CbC Report (Form 3CEAD / Form 59) in India only if any 1 of these 3 conditions under Section 286(4) / Section 511(4) applies:

1. No Requirement Abroad: The parent entity’s home country does not mandate CbC Report filing.
2. No Exchange Agreement: The parent entity’s home country has no active agreement with India for exchanging CbC Reports.
3. Systemic Failure: The parent entity’s home country experiences a systemic failure in sharing data and it has been officially communicated to the Indian entity.

This is subject to Section 286(5) / Section 511(6): Conditions for ARE-based relief from Indian CbCR filing

CbCR filing requirement in India is waived if the foreign group appoints an ARE that files the CbC Report in its home country, provided all conditions fulfilled. The 5 conditions under Sec 286 (5)/Sec 511 (6) are:

1. CbCR filing is required in the ARE’s country under the law applicable there. 
2. India has an agreement with that country for exchange of the CbCR. 
3. No systemic failure has been conveyed by the prescribed authority to any Indian Constituent Entity in respect of that country. 
4. The ARE has informed its country in writing that it has been designated as the Alternate Reporting Entity on behalf of the international group. 
5. The Indian Constituent Entity has informed the prescribed authority as required under the notification (Form 3CEAC / 58).

CASE C: Multiple Subsidiaries in India

If a foreign group has multiple subsidiaries in India, all subsidiaries do not need to file individual CbCR. The group can select one designated Indian entity to file on behalf of all Indian entities. 

Filing Form: Form 3CEAE (Act 1961)/Form 60 (Act 2025) is filed to declare which Indian entity has been designated to file the report on behalf of the other CE in India.

{Proviso to Sec 286(4), Income-tax Act, 1961 & Sec 511(5), Income-tax Act, 2025}

Designated Indian Constituent vs Alternative Reporting Entity

A designated Indian Constituent Entity is different from an ARE. An ARE files in place of the Parent Entity but a designated Indian Constituent Entity files on behalf of the Indian Constituent Entities when local filing under Section 286(4) applies.

7. Alternate Reporting Entity (ARE) under CbC Reporting Mechanism

An Alternate Reporting Entity (ARE) is a Constituent Entity designated by an international group, in place of the Parent Entity, to take responsibility for filing the CbCR on behalf of the entire group in the country where that ARE is resident.

Is appointing an Alternate Reporting Entity mandatory?

Appointing an ARE is not mandatory in every case.

Does appointing an Alternate Reporting Entity automatically remove Indian CbCR filing?

Simply appointing an ARE is not enough. For an Indian Constituent Entity to not file CbCR, the ARE must have actually furnished the CbCR in its country and the exception conditions under section 286(5) under Act 1961 or Sec 511(6) under Act 2025 must be fulfilled.

What does the Indian Constituent Entity have to do in case of appointment of AR?

Even where an ARE has been appointed and files CbCR, the Indian Constituent Entity has to fulfil the CbCR notification compliance under Form 3CEAC/Form 58.

8. What is the process for filing CbCR (Form 3CEAD / 59)?

Form 3CEAD is filed electronically on the Income Tax e-filing portal. The basic process is:

1. Login to the Income Tax e-filing portal.
2. Go to e-File then Income Tax Forms and then File Income Tax Forms.
3. Search and select Form 3CEAD / 59 Country-by-Country Report.
4. Click “File Now”.
5. Enter the required details.
6. Preview the form, verify the details, complete e-Verification and submit.

Get in touch with Master Brains Transfer Pricing Consultants for assistance with  CbCR and Transfer Pricing compliance.

9. What Information has to Reported Under CbCR?

CbCR reports country-wise financial, tax and business information of the international group, along with the reporting entity’s basic details.

The form has three parts:

1. Financial and Tax Information – Country-wise

For each tax jurisdiction in which the group’s Constituent Entities are resident, the CbCR reports:

1. Revenue: separately for related-party and unrelated-party transactions and total
2. Profit or loss before income tax
3. Income tax paid
4. Income tax accrued for the reporting accounting year
5. Stated capital
6. Accumulated earnings
7. Number of employees
8. Tangible assets excluding cash and cash equivalents

2. Details of Constituent Entities

The CbCR also identifies the Constituent Entities operating in each tax jurisdiction, including:

1. Name of the Constituent Entity
2. Tax jurisdiction of residence
3. Jurisdiction of incorporation or organisation, where different
4. Main business activities

The main business activities can include R&D, intellectual property management, manufacturing, sales and distribution, financial services, insurance, etc.

3. Additional Information

The reporting entity can provide brief explanations to help tax authorities understand the information reported in the CbCR.

Form 59 under the 2026 Rules has five parts.

10. What are the Most Common CbCR Compliance Mistakes?

1. Missing the CbCR deadline: Failing to file the CbCR within 12 months from the end of the reporting accounting year. Waiting until the deadline can be problematic because CbCR data has to be collected and reconciled from foreign group entities.
2. Incorrect financial data: Reporting wrong figures for revenue, profit, taxes, employees or assets. 
3. Wrong tax jurisdiction: Incorrectly reporting the tax residence or incorporation jurisdiction of a Constituent Entity. 
4. Missing the notification: Failing to submit Form 3CEAC within the prescribed time. 
5. Incorrectly applying ARE filing rules: Assuming that an ARE filing automatically removes the Indian filing requirement without checking all conditions attached under Sec 286/Sec 511. 

11. What are the Penalties for CbCR Non-Compliance in India?

The penalties for CbCR non-compliance under Section 271GB are enormous and accrue daily.

Under the new Section 459 (4) of Income-tax, Act 2025, a flat penalty of ₹ 5,00,000 applies if an entity files inaccurate CbCR data in any of these 3 cases:

1. Known Inaccuracy: Knew the report was inaccurate when filing but failed to inform tax authorities. 
2. Uncorrected Discovery: Discovered the inaccuracy after filing but failed to inform authorities and submit a corrected report within 15 days. 
3. Inaccurate Response: Furnished inaccurate information or documents in response to the notice under Sec 511 (7). 

Is there any relief from CbCR penalties?

No penalty under Section 271GB is imposable if the taxpayer proves that there was reasonable cause for the failure by establishing the facts and circumstances that caused the failure.

Source: Income Tax Department-Penalties 

{Sec 273B read with Sec 271GB, Act 1961 & Section 470 read with Section 459 under Act 2025}

Master File vs Local File vs CbCR: Comparison Table

CbCR Frequently Asked Questions

1. What is Country-by-Country Reporting (CbCR) and why was it introduced?

CbCR is an OECD BEPS Action 13 reporting requirement for multinational groups when the consolidated revenue threshold exceeds ₹ 6,400 crore. It provides tax authorities with jurisdiction-wise information about revenue, profits, taxes, employees and other information for global tax-risk assessment.

2. Which Indian entities of a multinational group are required to file CbCR?

Indian Parent Entity or ARE prepares and files the complete CbC Report (Form 3CEAD / Form 59). 

An Indian Constituent Entity may have to furnish the CbC Report in India where any of the three filing conditions under Section 286 (4)/Section 511 (4) applies, subject to the ARE-based exception under Section 286 (5)/Section 511 (6).

3. What is the difference between the Master File, Local File and CbCR?

The Local File explains the Indian entity’s material international transactions and their arm’s-length analysis. The Master File provides an overview of the MNE group’s global business, structure, intangibles, financing and transfer-pricing policies. However, CbCR provides country-wise financial and tax information across an international group.

4. What is the consolidated group revenue threshold for CbCR in India?

CbCR applies where the international group’s total consolidated group revenue exceeds ₹6,400 crore based on the relevant preceding accounting year. 

5. What are the penalties for non-filing or inaccurate CbCR in India?

Failure to submit the CbCR attracts daily penalties under Section 271GB, under Income-tax Act, 1961 (Section 459 of the 2025 Act) of ₹ 5,000 for the first month and ₹ 15,000 thereafter. Continuing default after a penalty order has a fine of ₹ 50,000 per day. Not producing requested information carries a ₹ 5,000 daily fine, while furnishing inaccurate information results in a flat ₹ 5,00,000 penalty (3 Specific cases under Section 459).

6. How does CbCR relate to the transfer-pricing documentation my company already prepares?

CbCR does not replace the Local File or any other TP documentation. It provides a group-wide, jurisdiction-level picture, while the Local File focuses on the Indian entity’s transactions and arm’s-length analysis. There should be consensus among these TP documents.

7. Is CbCR mandatory for Indian subsidiaries of small foreign companies?

Not always. CbCR applies only when the international group’s consolidated revenue exceeds ₹ 6,400 crore in the preceding accounting year. If the group does not cross this threshold, the CbCR provisions do not apply.

8. What happens if my parent company’s country has no CbCR agreement with India?

If the parent jurisdiction has no agreement with India for exchanging CbCR information, an Indian Constituent Entity may have to file CbCR in India according to the applicable CbCR Indian provisions, subject to the ARE exception available.

CbCR Compliance: Expert Level TP Tax Consultancy

At Master Brains, we help businesses with CbCR applicability, Form 3CEAC/3CEAD/3CEAE compliance, CbCR data vetting, transfer-pricing documentation and other international tax compliance.

Call now at Master Brains for International taxation and Transfer Pricing Services.

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Sources & Reference:

1. OECD: Country-by-Country Reporting and BEPS Action 13 guidance.
2. Income Tax Department: CbCR form 3CEAD filing guidance.
3. CBDT Income-tax Act, 1961: Section 286 and Section 271GB.
4. CBDT Income-tax Act, 2025: Section 511 and Section 459.
5. Income-tax Rules: Rule 10DB (1962 Rules) and Rule 124 (2026 Rules).