With regards to the draft guiding principles for the determination of Place of Effective Management PoEM- consider the following statements-1- PoEM is an attempt to plug the loopholes caused by the incorporation of Multi-national companies outside India- even though effective management of such companies was from India-2- The PoEM guidelines shall become effective from 1st April 2017 -3- The guidelines stress upon the -physical location- of key decision-makers for determining PoEM-Select the correct statements-

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Standard XII

Accountancy

Purpose of Financial Statements

With regards ...

Question

With regards to the draft guiding principles for the determination of Place of Effective Management (PoEM); consider the following statements:

Select the correct statement(s):

Only 1 and 2

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Only 2 and 3

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Only 3

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All of these

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Solution

The correct option is C
Only 3

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.

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With regards to the draft guiding principles for the determination of Place of Effective Management (PoEM); consider the following statements: Select the correct statement(s):

With regards to the draft guiding principles for the determination of Place of Effective Management (PoEM); consider the following statements:

Select the correct statement(s):