<h1>CBDT Issues Guidelines on Place of Effective Management for Companies; Excludes Active Foreign Businesses, Effective April 2016.</h1> The Central Board of Direct Taxes (CBDT) has issued guidelines for determining the Place of Effective Management (POEM) of a company, effective from April 1, 2016, applicable from the assessment year 2017-18. These guidelines aim to identify companies with real control in India but operating abroad, excluding those engaged in active business outside India. They are not intended to tax foreign companies based solely on business presence in India. Administrative safeguards require approval from senior tax officials before assessing a company's POEM. Companies with a turnover of Rs. 50 Crore or less are exempt, and the guidelines include illustrative examples.