Place of Effective Management (POEM): striking the right balance

Different countries may have different ways in which they choose to set the jurisdiction for tax under the residence principle. However, there is a degree of consensus on the basic principle that there should be a fairly strong economic nexus with that country. Two basic approaches are used in establishing a personal jurisdictional connection for … More Place of Effective Management (POEM): striking the right balance

Dwelling deep into the POEM exposure

Case studies on Place of Effective Management (POEM) The POEM norms introduced in the Finance Act, 2015 for determining corporate tax residency, could impact overseas entities controlled and managed from India. Tax authorities may now closely scrutinize the functioning of overseas entities to determine situs where key management and commercial decisions that are necessary for … More Dwelling deep into the POEM exposure

Choosing the right tax return form: a prerequisite to keep troubles at bay

Which form should I use for filing my Income Tax Return (ITR) for the tax year 2014–15 and what all information am I required to declare in it? This is the question I have been asked the most by my friends during filing of returns. The ITR forms issued earlier for the tax year 2014–15 … More Choosing the right tax return form: a prerequisite to keep troubles at bay

India’s International Financial Services Centre: a bold new beginning

Services constitute more than half of India’s Gross Domestic Product (GDP) today. As China has emerged as the leading global manufacturer, India is striving hard to establish its position as the best and the most cost-effective service provider for the West. Financial Services form a very important part of the service bouquet and indeed the … More India’s International Financial Services Centre: a bold new beginning

ICDS: a move towards simplification or a new challenge?

In order to minimize alternative tax treatments and bring certainty in reporting taxable income, the Central Government (CG) has recently notified the following 10 Income Computation and Disclosure Standards (ICDS), w.e.f., 1 April 2015 for implementation: I. Accounting policies II. Valuation of inventories III. Construction contracts IV. Revenue recognition V. Tangible fixed assets VI. Effects … More ICDS: a move towards simplification or a new challenge?