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An Indian Company will always be Resident

A foreign company will also be Resident if control and management inside India   its place of effective management is Inside India 

(NEW AMENDMENT)

Note:

There is no concept of ROR/RNOR here

 Effect of Amendment

Earlier only if total control and management was Inside India,it was treated as Resident Company.Hence,companies used to do tax planning by holding some of its board meetings outside India,Hence they were treated as non resident company.

Now,Place of Effective management(POEM) is relevant

POEM means a place where key management and commercial decisions that are necessary for the conduct of the entity's business as a whole, are, in substance, made.
Residential status for Companies - Residential Status

  1. Income Tax
  2. Residential Status
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CA Maninder Singh's photo - Expert in Practical Accounts, Taxation and Efiling
CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 6 years. He provides courses for Practical Accounts, Taxation and Efiling at teachoo.com .
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