The income tax department on Friday clarified that the Place of Effective Management (POEM) rules that require foreign firms to pay taxes in India if the effective control is within the country, will not apply to companies with a turnover of Rs 50 crore or less in a financial year. Last month, the tax department had come out with the POEM rules that will require foreign companies in India and Indian firms with overseas subsidiaries to pay local taxes based on where the business if effectively controlled.
Rakesh Nangia, Managing Partner shares his views on aforementioned story for following publications:
- Business Standard
- Indian Express
- PTI(News Agency)