[Taxation Laws Updates] [India]
Central Board of Direct Taxes' Circular No 25 of 2017 dated 23rd October, 2017:-
1. The concept of 'Place of Effective Management' (PoEM) for deciding residency status of a company, other than an Indian company, was introduced in the Income-tax Act, 1961 (the Act) which has become effective from 1st April, 2017, i.e ., Assessment Year 2017-18 onwards.
2. Guiding Principles for determination of PoEM of a company were issued on 24th January, 2017 vide Circular No 06 of 2017. Further, vide Circular No 08 of 2017 dated 23rd February, 2017, it has been clarified that the PoEM provisions shall not apply to a company having turnover or gross receipts of Rs 50 crore or less in a financial year.