Tax Experts Seek More Clarity on PoEM Norms

Tax experts have sought greater clarity from CBDT on draft PoEM norms that aim to determine the tax residency of companies, and said that a set of objective criteria be put in place before implementing them. They have also suggested that detailed FAQs be brought out on various provisions.The Central Board of Direct Taxes should
provide guidance with regard to expressions ike “management and commercial decisions“ and “conduct of company's business as a whole“ as interpretation of these
expressions might lead to more litigations, they said. The draft guidelines on Place of Effective Management (PoEM), to assess a company's tax liability, have
suggested a two-stage process. According to the draft, the first stage would identify the persons who make the key management .

The Economic Times, New Delhi, 8th Feb. 2016

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RBI deputy governor cautions fintech platform lenders on privacy concerns during loan recovery

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