Such firms to pay tax in India if decision- makers hold Multinational companies ( MNC) will be liable to pay tax in India if those who take key decisions conduct most of their meetings in India, even if the decisions are implemented in another tax jurisdiction, according to the draft guidelines of the finance ministry. The proposed rules might force MNCs to locate their regional controller offices outside India, say experts. With a view to tightening loopholes to deter tax evasion by multinational companies —Indian or foreign — the government on Wednesday released guidelines on place of effective management ( PoEM). The rules will affect Indian companies that take most decisions about their foreign subsidiaries from India and also foreign multinational companies with shell divisions. The rules will come into effect from 2016- 17 assessment year, which means this financial year. PoEM has been defined as “ a place where key management and commercial decisions that are necessa