The CBDT has issued a press release dated 23.12.2015 stating that 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 any previous year, if it is an Indian company or its Place of Effective Management (POEM) in that year is in India. It is further stated that the Explanatory Memorandum to the Finance Bill, 2015 stated that a set of guiding principles for determination of POEM would be issued for the benefit of the taxpayers as well as the tax administration.
In this regard, the CBDT has formulated draft guiding principles for determination of POEM for comments from stakeholders and general public. Comments and suggestion on the draft guidance may be sent by 2nd January, 2016 at the email address (dirtpl1@nic.in) or by post with “Comments on draft Guidance on POEM” written on the envelop.
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