What will happen if the Report in Form 3-CEB is not obtained, and Transfer pricing documentation is not prepared / maintained in the company ?
In respect of non-filing of Form No.3CEB, a penalty of Rs.1 lakh is leviable by the TPO concerned. In respect of non-maintenance/ non-preparation of the Transfer Pricing documentation , the company is liable to pay a penalty of 2% of the total international transaction value. In respect of non-filing of the T.P. documentation before the TPO concerned, the company is liable to pay another 2% of the total international transaction value.