Income of a foreign shipping company not taxable in India under “place of effective management” test: The Rajkot Bench of the Income-tax Appellate Tribunal held that under Article 9 of the India-Denmark income tax treaty, earned by a foreign company from operations of ships in international traffic is not taxable in India because the place of effective… Read More »
Determination of place of effective management of company The Central Board of Direct taxes issued guiding principles to be followed for determination of the place of effective management, concerning rules related to whether a company is a resident in India. Read a report on place of effective management [PDF 311 KB] of KPMG
Place of Effective Management – POEM Principles Circular No. 06 of 2017 F. No. 142/11/2015-TPL Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes Dated: 24 th January, 2017 Subject: Guiding Principles for determination of Place of Effective Management (POEM) of a Company. Download Complete CBDT Circular on POEM Principles
CBDT issues Guiding Principles for determination of Place of Effective Management (POEM) of a Company The concept of Place of Effective Management (POEM) for deciding the Residential Status of a company was introduced by the Finance Act, 2015. It is effective from 01.04.2016 and accordingly shall apply from assessment year 2017-18 onwards. The guidelines for… Read More »
F. No. 142/11/2015-TPL Government of India , Ministry of Finance ,Department of Revenue ,Central Board of Direct Taxes Dated: 23rd December, 2015 issued Draft Guiding Principles for determination of Place of Effective Management (POEM) of a Company. Why place of effective management for Companies ? Section 6(3) of the Income-tax Act, 1961, prior to its… Read More »
Draft Guiding Principles for Determination of Place of Effective Management (Poem) of a Company Formulated. The Finance Act, 2015 has amended, with effect from 01.04.2016, the provisions of Income-tax Act relating to determination of residence of a company. In accordance with the amended provisions a company would be said to be resident in India in… Read More »
Foreign companies with Indian shareholders won’t have to pay taxes here for their worldwide income unless they are managed from India on an everyday basis. If these foreign companies are managed from outside India, whether or not they are promoted by resident Indians, they will have to pay taxes in India only for the income… Read More »