![Place Of Effective Management In India (POEM) Place Of Effective Management In India (POEM)](https://cdn.blogarama.com/images/posts_thumbs_site_id/1328/132841-3876367531.jpg)
POEM is the place where the 'key management and commercial decisions that are necessary for the conduct of business of an entity as a whole are, in substance made. NEED: This concept is the test of residence for foreign companies to provide that a company would be treated as resident in India if its POEM in the previous year is in India for tax purposes.