FEATURES OF GUIDELINES

• Applicable from A.Y 2017-18.
• Applicable to Companies turnover more than 50 Crores in F.Y (Circular No 8/2017).
• Concept of POEM is on substance over form.
• To be analysed on year-on-year basis.
• Financial data of Pervious 2 years and current year to be considered for determining active business of place.
• The principal of determination are in the nature of guidelines and will not be decisive factor in itself.
• POEM in India and also outside India shall be presumed to be in India ,if it has been predominately in India.
• The guidelines provides for approval of Commissioner or collegium of 3 commissioner in case of initiation of proceedings/concluding of POEM in India respectively.
• Guidelines provide for granting and opportunity of being heard to the tax payers.