Clarification related to guidelines for establishing ‘Piace of Effective Management’ (PoEM) in India-reg.

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....r, 2017 Subject: Clarification related to guidelines for establishing 'Piace of Effective Management' (PoEM) in India-reg. The concept of 'Place of Effective Management' (PoEM) for deciding residency status of a company, other than an Indian company. was introduced in the Income-tax Act, 1961 (the Act) which has become effective from 1^st April. 2017, i.e., Assessment Year 2017-18 onwards. ....

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....side India may be taxed in India. 4. In this regard. it may be mentioned that Para 7 of the 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. 4.1 However, Para 7.1 of the guidelines ....

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....titute a case of BoD of companies standing aside. 5. In view of the above. it is clarified that so long as the Regional Headquarter operates for subsidiaries/ group companies in a region within the general and objective principles of global policy of the group laid down by the parent entity in the field of Pay roll functions, Accounting, HR functions, IT infrastructure and network platforms, Su....