Penalties under Transfer Pricing - International Taxation - Income Tax

Penalties under Transfer Pricing Default made by the Aseessee Section Penalty Failure to keep and maintain information and documents u/s 92D(1) (2) Failure to report such transaction which he is required to do so; or Failure to maintains or furnishes an incorrect information or document. Section 271AA 2% of the value of each international transaction or specific domestic transaction entered. [ Section 271AA(1) ] If any person fails to furnish the information and the document as required u/s 92D(4), the prescribed income-tax authority Every person being a constituent entity of an international group, failure to furnish Information Documents [Master File] to authority prescribed u/s 286(1). [ Section 94D(4) ] ₹5,00,000. [ Section 271AA(2) ] Penalty for failure to furnish report from the chartered accountant. Section 271BA ₹ 1 lakh. Penalty for failure to furnish information or document under section 92D(3) Section 271G 2% of the value of each international transaction or specific domestic transaction entered. Failure to report any International transaction or deemed International transaction to which the provision of Chapter X applies would constitute misreporting of Income Section 270A(9) 200% of the tax payable on under-reported income. Penalty for non-furnishing of the report by any reporting entity which is obliged to furnish such report u/s 286(2) . (a) Not more than a month Section 271GB ₹ 5,000 per day [ Section 271GB(1)(a) ] (b) Beyond 1 month ₹ 15,000 per day for the period exceeding 1 month [ Section 271GB(1)(b) ] Continuing default even after service of order levying penalty either under (a) or (b) above ₹ 50,000 per day of continuing failure beginning from the date of service of order [ Section 271GB(3) ] Penalty for failure to produce information and documents within prescribed time u/s 286(6) Penalty for failure to produce information and documents before prescribed authority within period allowed u/s 286(6) Section 271GB ₹ 5,000 per day of continuing failure, from the day immediately following the day on which the period for furnishing the information and document expires. [ Section 271GB(2) ] Continuing default even after service of penalty order ₹ 50,000 per day for the period of default beyond the dates of service of order . [ Section 271GB(3) ] Penalty for submission of inaccurate information in the CBC report Where a reporting entity provides inaccurate information in the report (i.e. CBC Report) furnished in accordance with section 286(2) and where- (a) the entity has knowledge of the inaccuracy at the time of furnishing the report but fails to inform the prescribed authority; or (b) the entity discovers the inaccuracy after the report is furnished and fails to inform the prescribed authority and furnish correct report within a period of 15 days of such discovery; or (c) the entity furnishes inaccurate information or document in response to the notice issued u/s 286(6) , Section 271GB ₹ 5,00,000/- [ Section 271GB(4) ]