Budget 2016: Foreign holdings to benefit from POEM delay

Finance minister Arun Jaitley on Monday said that the so-called place of effective management (POEM) rules will be deferred by one year, prompting foreign companies in the country and those with overseas subsidiaries to benefit from the extended time to re-organise their businesses. POEM refers to the location where key decisions necessary to conduct business are made. It is used internationally to determine the residence of a company incorporated in a foreign jurisdiction. These rules were eagerly awaited by Indian and multinational companies for clarity on their residency status.

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