CBDT:
CBDT has issued Clarification related to guidelines for establishing ‘Place of Effective Management’ (PoEM) in India. The concept of ‘Place of Effective Management’ (PoEM) is being used for deciding residency status of a company, other than an Indian Company. It has been clarified that so long as the Regional Headquarter operates for subsidiaries/ group companies in a region within the general and objective principles of global policy of the group laid down by the parent entity in the field of Pay roll functions, Accounting, HR functions, IT infrastructure and network platforms, Supply chain functions, Routine banking operational procedures, and not being specific to any entity or group of entities per se; it would, in itself, not constitute a case of BoD of companies standing aside and such activities of Regional Headquarter in India alone will not be a basis for establishment of PoEM for such subsidiaries/ group companies.
MCA – IBBI:
MCA has finally notified that the powers and functions vested in it under section 247 of the said Act shall now be delegated to the Insolvency and Bankruptcy Board of India, subject to the condition that the central Government may revoke such delegation of powers or it may exercise the powers under the said section if in its opinion such a course of action is necessary in the public interest. The Section 247 deals with the Valuation by Registered Valuers. This notification shall come into force with effect from the date of its publication in the Official Gazette.
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