POEM

Ruling on Benefit of India–Mauritius Treaty on Capital Gains (POEM/PPT/GAAR)

Income Tax - AAR – Ruling on Benefit of India–Mauritius Treaty on Capital Gains taken by Tiger Global International Group in respect of Shares of Flipkart (Singapore Co) sold by Mauritius based Co to a Company in Luxembourg (which is controlled by Walmart) and the value of shares is derived from assets located in India Summary of Case […]...

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Place of Effective Management Establishments – Corporate Tax Residency

Income Tax - International Tax Perspective – Part II : Place of Effective Management (POEM) Establishments – Corporate Tax Residency Introduction Businesses are currently dealing with a multitude of issues as a result of the measures taken to stop the global spread of the COVID-19. One aspect that might not currently feature at the top of the list...

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Residential Status of Companies under Income Tax Law

Income Tax - With effect from AY 2017-18 company would be resident in India if in any previous year: 1. It is an Indian Company (i.e. Incorporated as per Companies Act 2013 or 1956) 2. Its Place of Effective Management (POEM) is in India for a particular PY. POEM means a place where key managerial and Commercial decisions […]...

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PoEM – A New Direction to Indian International Taxation Regime

Income Tax - Place of Effective management means a place where key management and commercial decisions that are necessary for the conduct of the business of an entity as a whole are, in substance, made....

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Taxation of Digital Economy in India

Income Tax - Residents are taxed on worldwide income and non-residents are taxed only on income sourced in India. Companies are treated as residents on satisfying either of the conditions: (a) incorporation in India (b) Place of Effective Management (‘POEM’) is in India. Accordingly, a company incorporated outside India and having its POEM outside...

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Applicability of POEM should be deferred by a year : ICAI

Income Tax - POEM Guidelines have been recently finalised only on 24th January, 2017, whereas the POEM provisions are already applicable w.e.f. 1st April 2016 (applicable from AY 2017-18 and onwards)...

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CBDT amends Place of Effective Management (PoEM) rules wef 01.04.2017

Notification No. 29/2018-Income Tax [S.O. 3039 (E)] - (22/06/2018) - in a case where a foreign company is said to be resident in India on account of its Place of Effective Management (hereinafter referred to as PoEM) being in India under sub-section (3) of section 6 of the Act in any previous year and such foreign company has not been resident in India in any of the ...

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Clarification related to guidelines for establishing PoEM in India

Circular No 25 of 2017-Income Tax - (23/10/2017) - Para 7 of POEM guidelines provides that the place of effective management in case of a company engaged in active business outside India (ABOI) shall be presumed to be outside India if the majority meetings of the board of directors (BOD) of the company are held outside India....

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Draft Notification on foreign company resident in India U/s. 115JH

F No 370142/19/2017-TPL - (15/06/2017) - CBDT invites comments and suggestions on the Draft Notification in respect of foreign company said to be resident in India under Section 115JH of the Income-tax Act, 1961...

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POEM guidelines not applies to company with turnover of Rs. 50 crores or less in a year

Circular No 08 of 2017-Income Tax - (23/02/2017) - Press Release on POEM guidelines dated 24th January, 2017 has, inter alia, stated that the POEM guidelines shall not apply to a company having turnover or gross receipts of Rs. 50 crores or less in a financial year ....

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Principles for determination of Place of Effective Management (POEM) of a Company

Circular No. 06/2017-Income Tax - (24/01/2017) - Section 6(3) of the Income-tax Act, 1961 (the Act), prior to its amendment by the Finance Act, 2015, provided that a company is said to be resident in India in any previous year, if it is an Indian company or if during that year, the control and management of its affairs is situated wholly in India....

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Recent Posts in "POEM"

Ruling on Benefit of India–Mauritius Treaty on Capital Gains (POEM/PPT/GAAR)

AAR – Ruling on Benefit of India–Mauritius Treaty on Capital Gains taken by Tiger Global International Group in respect of Shares of Flipkart (Singapore Co) sold by Mauritius based Co to a Company in Luxembourg (which is controlled by Walmart) and the value of shares is derived from assets located in India Summary of Case […]...

Read More
Posted Under: Income Tax |

Place of Effective Management Establishments – Corporate Tax Residency

International Tax Perspective – Part II : Place of Effective Management (POEM) Establishments – Corporate Tax Residency Introduction Businesses are currently dealing with a multitude of issues as a result of the measures taken to stop the global spread of the COVID-19. One aspect that might not currently feature at the top of the list...

Read More
Posted Under: Income Tax |

Residential Status of Companies under Income Tax Law

With effect from AY 2017-18 company would be resident in India if in any previous year: 1. It is an Indian Company (i.e. Incorporated as per Companies Act 2013 or 1956) 2. Its Place of Effective Management (POEM) is in India for a particular PY. POEM means a place where key managerial and Commercial decisions […]...

Read More
Posted Under: Income Tax |

PoEM – A New Direction to Indian International Taxation Regime

Place of Effective management means a place where key management and commercial decisions that are necessary for the conduct of the business of an entity as a whole are, in substance, made....

Read More
Posted Under: Income Tax |

Taxation of Digital Economy in India

Residents are taxed on worldwide income and non-residents are taxed only on income sourced in India. Companies are treated as residents on satisfying either of the conditions: (a) incorporation in India (b) Place of Effective Management (‘POEM’) is in India. Accordingly, a company incorporated outside India and having its POEM outside...

Read More
Posted Under: Income Tax |

Place of Effective Management in India (POEM)

POEM is the place where the 'key management and commercial decisions that are necessary for the conduct of business of an entity as a whole are, in substance made. NEED: This concept is the test of residence for foreign companies to provide that a company would be treated as resident in India if its POEM in the previous year is in Indi...

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Posted Under: Income Tax |

Place of Effective Management in India – A Detailed Analysis

Background   The term “Place of Effective Management’ (POEM) had already been in existence in the Income Tax Act, 1961 (‘The Act’) for the purpose of application of special provisions for taxing shipping companies based on their POEM. However, the usage of the concept for the purpose of determination of residence of a for...

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Posted Under: Income Tax |

Guiding Principles for determination of POEM

Guiding Principles for determination of Place of Effective Management (POEM) of a Company- The concept of Place of Effective Management (POEM) was introduced for deciding the residency status of a non-Indian company, by Finance Act, 2015 which is applicable from 1st April, 2017....

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Posted Under: Income Tax |

Final Notification on POEM

Now CBDT has issued final notification dated 22nd June, 2018 applicable from 1st April 2017 i.r.t. exception, modification & adaption of provisions of section 115JH for those foreign companies which are said to be resident in India on account of its POEM in any previous year but not in any of the preceding previous years. ...

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Posted Under: Income Tax |

Sound of Poem (Place of Effective Management): Latest Update

With respect to opening WDV in case of the foreign company whose PoEM is determined in India and which is assessed to tax in the home jurisdiction, the final notification provides for 2 cases:...

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Posted Under: Income Tax |

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