TaxTMI 
TaxTMI 
RESIDENTIAL STATUS OF A ‘COMPANY’ based on POEM
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....-2017 Place of effective management' (POEM) is an internationally recognised test for determination of residence of a company incorporated in a foreign jurisdiction. Most of the tax treaties entered into by India recognises the concept of 'place of effective management' for determination of residence of a company as a tie-breaker rule for avoidance of double taxation. The CBDT has lai....
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.... What is ABOI test? A company is said to be engaged in ABOI, if it fulfills the cumulative conditions of: Its passive income* (wherever earned) is 50% or less of its total income. Less than 50% of its total assets situated in India Less than 50% of the total number of employees are situated in India or are residents in India Payroll expenses incurred on such employees are less than 50% of it....
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....untry of incorporation of the company at the beginning and at end of the previous year; and * (b) In case of pool of a fixed assets being treated as a block for depreciation, shall be * the average of its value for tax purposes in the country of incorporation of the company at the beginning and at end of the year; * (c) In case of any other asset, shall be * its value as per books of accou....