Hi Dipak,
You need to create a RFC connection (ABAP connection ) in SM59 with the same host as your TM-EM system. If not sure of host name, ask Basis for RFC host name for your TM system.
Then define your Logical system.
Then in Define SAP EM, use this RFC and Logical system and create an entry with Local and Sync unchecked.
This way, if you create TM objects, the comminication is via qRFC between TM and EM even though they are in same box.
Hope this helps.
Thanks,
Vishnu