Place of effective management in India | KPMG | GLOBAL

India: Draft guidelines, determining a company's place of effective management

India and "place of effective management"

India's Central Board of Direct Taxes (CBDT) issued draft guiding principles for determining if a company is a resident in India or has its place of effective management in India.


Related content

The Finance Act, 2015, amended the provisions of section 6(3) of the Income-tax Act, 1961 to provide that a company is a resident in India for any previous year, if it is an Indian company or its place of effective management for that year is in India. For these purposes, the place of effective management means the 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.

A legislative memorandum explaining the provisions of the Finance Bill, 2015, stated that a set of guiding principles would be issued to help taxpayers and the tax administration determine the place of effective management. 


Read a December 2015 report [PDF 402 KB] prepared by the KPMG member firm in India: The CBDT issues draft guiding principles for determination of the Place of Effective Management of a company

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us


Request for proposal