Draft Guiding Principles for determination of Place of Effective Management of a Company - (Ministry of Finance ) (23 Dec 2015)
Draft to determine company’s ‘Place of Effective Management’
Direct Taxation
The Ministry of Finance has released draft guidelines proposing principles to determine the ‘place of effective management’ of a company, for the purposes of Section 6(3) of the Income Tax Act, 1961. Place of effective management refers to the location where “key management and commercial decisions…necessary for the conduct of business as a whole” are made. Some guiding criteria include the place where the company’s board meets and makes decisions regularly and location of the head office; secondary factors such as the place where substantial activity of the company is carried out can also be used. The Draft Principles can be accessed here.
Tags : INCOME TAX COMPANY EFFECT MANAGEMENT DRAFT PRINCIPLES
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