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
Ask Download

About the Author

Davneet Singh's photo - Teacher, Computer Engineer, Marketer
Davneet Singh
Davneet Singh is a graduate from Indian Institute of Technology, Kanpur. He has been teaching from the past 8 years. He provides courses for Maths and Science at Teachoo. You can check his NCERT Solutions from Class 6 to 12.