Meaning of Place Of Effective Management (i.e. POEM):- Place of effective management (POEM) is a place where : – Key management, and commercial decisions that are necessary for the conduct of the business of an entity as a whole are, in substance made. “Furthermore, the Place of Effective Management is an globally acceptable test. “Moreover, the purpose of this is to … Read more
OBJECTIVE OF INTRODUCTION OF SECTION 94A OF INCOME TAX ACT The main objective of Section 94A of the Income Tax Act, 1961 is to discourage assessees from entering into transactions with persons located in countries or territories which do not exchange tax information with India. NOTIFIED JURISDICTIONAL AREA – SECTION 94A The Central Government may … Read more
RNOR-Resident but not Ordinarily Resident : – RNOR stands for Resident but Not Ordinarily Resident(i.e. full form of RNOR). Section 6(6) of the Income Tax Act 1961 deals with the conditions to determine the status of Residence. These conditions are defined as under: – If he/she has been a non-resident in India for nine out … Read more
What is Form 10F? If you are a non-resident and intend to understand what is Form 10F and why it is required, this Article is for you. Importance of Form 10F Every country has certain domestic tax laws, and it also enters into international tax agreements with other foreign countries, to avoid double taxation of … Read more
An effective scheme of buy back of shares can increase shareholders’ return and aid in distribution of surplus cash. Provision for taxability on buy back of shares Section 115QA of Income Tax Act, 1961 Rate of tax on buy back of shares 20% + surcharge + cess (HEC) Provision governing buy back of shares Section … Read more
Reduction of share capital under Section 66 of the Companies Act, 2013 , involves reducing the issued, subscribed, and paid-up share capital of a company. Such reduction can take on different forms, such as with or without payout, and can be selective for a specific class of shares. However, it does not include buy-back of … Read more
Demergers in India is undertaken to separate a business unit from a business structure, for reasons such as focusing on core operations or unlocking value for shareholders. Introduction to Demergers in India According to Section 2(19AA) of the Income Tax Act, 1961, demergers refer to a form of corporate restructuring wherein: One or more business … Read more
I. Introduction to Form 10F Form 10F income tax , is an online Form, which is required to be filed by foreign companies, foreign companies, Limited Liability partnerships, LLC, individuals and other taxpayers. This Form is required to be filed online on the website of the Indian income tax office, after creating an account thereon. … Read more
Article 6 Income from Immovable property – Introduction Article 6 Immovable property, relates to the taxation of income from immovable property , which a taxpayer, who is a resident of one country, may have in a foreign country. In such a case, the first right to tax such income, is given to the country in … Read more
International taxation, is an area of tax, where tax is determined, in respect of an income, which is earned by a tax resident of one country, from business operations, rendering of services, employment, capital gains, dividend, interest or any other income, in another country.In such cases, both the country where the income arises,as well as … Read more