To determine the residential status of foreign companies, the Finance Act 2015 introduced the concept of place of effective management or POEM. If a company’s place of effective management is India, it will be treated as an Indian resident and its global income will be taxable in India. But the criteria to determine the place of effective management were missing and so in Budget 2016 Finance Minister Arun Jaitley deferred POEM by a year. That is, it would become applicable starting financial year 2016-17. 10 months into the fiscal and the Central Board of Direct Taxes has only now released the POEM guidelines.   Rakesh Nangia, Managing Partner shares his views on New norms seek to plug tax evasion by shell firms for following publications:
  1. Economic Times
  2. Business Standard
  3. Bloomberg Quint
  4. Indian Express
  5. Financial Chronicle
  6. Calcutta Telegraph
  7. PTI
(PTI has flashed two stories which has been carried by 298 other publications)  Attached are links to the article