https://www.taxtmi.com/article/detailed?id=6142 The amendment replaces the "control and management wholly in India" test with a Place of Effective Management (POEM) criterion that makes a company an Indian tax resident if its POEM is in India at any time during the year. This diverges from international practice that generally requires predominance or continuity, increasing the risk of foreign entities being taxed on worldwide income. Practical safeguards recommended include an independent foreign board, offshore strategic decision making, clear charter powers, limited parent stewardship, foreign based key management, and contemporaneous documentation to substantiate the foreign POEM. en-us Sat, 07 Mar 2015 05:40:11 +0530 Sat, 07 Mar 2015 05:40:11 +0530 TaxTMI RSS Generator https://www.taxtmi.com/article/detailed?id=6142 The amendment replaces the "control and management wholly in India" test with a Place of Effective Management (POEM) criterion that makes a company an Indian tax resident if its POEM is in India at any time during the year. This diverges from international practice that generally requires predominance or continuity, increasing the risk of foreign entities being taxed on worldwide income. Practical safeguards recommended include an independent foreign board, offshore strategic decision making, clear charter powers, limited parent stewardship, foreign based key management, and contemporaneous documentation to substantiate the foreign POEM. Articles Income Tax Sat, 07 Mar 2015 05:40:11 +0530 https://www.taxtmi.com/article/detailed?id=6142