Features of Guidelines

April 19, 2017

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.