The Concept of place of effective management for foreign companies is applicable from AY 2017-18. Guidelines for determining POEM have been provided in Circular 6/2017 dated 24-01-2017. Press Release on 24-01-2017 provided that POEM shall not apply to companies having turnover of 50 crores or less. Now it is being clarified vide circular also that POEM shall not apply to companies having turnover of 50 crores or less [Circular 8/2017 dated 23-02-2017]