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CBDT invites comments on PoEM provision for foreign firms

IANS  |  New Delhi 

The (CBDT) on Thursday invited public opinion on the special provisions introduced for foreign companies said to be resident in on account of Place of Effective Management (PoEM).

According to the special provision: "The central government may notify exception, modification and adaptation subject to which, provisions of the Act relating to computation of total income, treatment of unabsorbed depreciation, set off or carry forward and set off of losses, collection and recovery and special provisions relating to avoidance of tax shall apply in a case where a foreign company is said to be resident in due to its PoEM being in for the first time and the said company has never been resident in before."

The Finance Act, 2016, had introduced the special provision in the Income Tax Act with effect from April 1 this year.

"It has been further provided that these transitional provisions would also cover any subsequent previous year up to the date of determination of PoEM in an assessment proceeding," CBDT said here in a statement.

The comments and suggestion on the draft rules may be sent electronically to the email address dirtpl1@nic.in by June 23.

--IANS

mm/vgu/vt

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, June 15 2017. 21:30 IST
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