PoEM Rules - The Indian Government Issues A Draft Notification For Comments

PoEM Rules - The Indian Government Issues A Draft Notification For Comments
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PoEM Rules - The Indian Government Issues A Draft Notification For Comments
June 19th, 2017
Recently the government vide draft notification dated 15th June, 2017 provided exceptions, modification, and adoption in respect to PoEM rules on which comments and suggestions from the general public are invited.
The concept of Place of Effective Management in India (“PoEM”) was introduced in Finance Act, 2015.
Recently the government vide draft notification dated 15th June, 2017 provided exceptions, modification, and adoption in respect to PoEM rules on which comments and suggestions from the general public are invited.

The concept of Place of Effective Management in India (“PoEM”) was introduced in Finance Act, 2015. It is a concept for the determination of the residential status of a company. In the Finance Act, 2016 the applicability of PoEM was deferred for another year and it was made applicable from Assessment Year 2017-18 onwards.

Prior to the amendment; the residential status of a company was determined based on control and management of its affairs situated in India. After the amendment; the residential status is determined on basis of existence of Place of Effective Management (“PoEM”). The concept of Active Business Outside India (“ABOI”) has been introduced in PoEM rules to determine the residential status of a company. Further, companies with a turnover of Rs. 50 crore or less in a financial year will be exempt from the PoEM provisions.

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Source: Ashok Maheshwari & Associates LLP (TPA Global Alliance Partner in India)
 
PoEM Rules - The Indian Government Issues A Draft Notification For Comments
; posted on
June 19th, 2017
Recently the government vide draft notification dated 15th June, 2017 provided exceptions, modification, and adoption in respect to PoEM rules on which comments and suggestions from the general public are invited.
The concept of Place of Effective Management in India (“PoEM”) was introduced in Finance Act, 2015.
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