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ARTICLE · 29 NOVEMBER 2017

MNCs Not Tax Liable For Routine Operations

S.S. Rana & Co.
S.S. Rana & Co.
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The era of globalization has brought together the people to work jointly thereby benefiting each other by increasing transfer of knowledge and technology.

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The era of globalization has brought together the people to work jointly thereby benefiting each other by increasing transfer of knowledge and technology. This interdependence coupled with harmonization with the world statistical standards by the means of Multi-national Companies (hereinafter referred to as "MNCs") has given the Indian economy a major boost in covering its path of development.

The Central Board of Direct Taxes (hereinafter referred to as "CBDT") vide notification on 23rd October, 2017 brought a sigh of relief for the Multinational Companies operative in India. It laid down clarification related to guidelines for establishing 'Place of Effective Management' (hereinafter referred to as "PoEM"). Many MNCs raised their concerns after the issue of guiding principles for determination of PoEM dated 24th January, 2017 seeking elucidation on the aspect of consideration of their regional headquarters in India as PoEM.

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