RESIDENTIAL STATUS OF A ‘COMPANY’ based on POEM - Basics / Levy of Tax / Residential Status - Income Tax

..... Section 6(3) RESIDENTIAL STATUS OF A ‘COMPANY’ Guiding Principles for determination of Place of Effective management (‘POEM’) of a Company, other than an Indian company - Circular no. 25/2017 dated 23-10-2017, 8/2017 dated 23-2-2017 and 6/2017 dated 24-1-2017 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 recog .....

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RESIDENTIAL STATUS OF A COMPANY based on POEM - Basics / Levy of Tax / Residential Status - Income Tax

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..... 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 its total payroll expenditure * Passive income of a company shall be aggregate of: (i) Income from the transactions where both the purchase a .....

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RESIDENTIAL STATUS OF A COMPANY based on POEM - Basics / Levy of Tax / Residential Status - Income Tax

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