RESIDENTIAL STATUS OF A ‘COMPANY’ based on POEM

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..... 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 recognises the concept of 'place of effective management' for determination of residence of a company as a tie-breaker rule for avoidance of double taxat .....

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..... t of the company s business as a whole. Stage 2 : Determination of place where these decisions are, in fact, made. 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 .....

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..... gains, interest (except for banking companies and public financial institutions) or rental income whether or not involving associated enterprises. Value of Assets (a) In case of an individually depreciable asset or 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 previous year ; and .....

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..... CBDT Clarifications Circular no. 25/2017 dated 23-10-2017 , and 6/2017 dated 24-1-2017 POEM not apply The POEM guidelines shall not apply to a company having turnover or gross receipts of ₹ 50 crores or less in a financial year. [ Circular No 08 of 2017 dated 23.02.2017 ] - Manuals - Ready reckoner - Law and practice - Reference Guide - Quick Commentary .....

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