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How Is The Residential Status Of A Firm Or A Company Determined For Taxation?

  • A firm or company qualifies as a resident of India if either of the two conditions is met:
  • 1.The company or firm is Indian.
  • 2. Most of the effective management of the company, for the fiscal year in question, takes place in India.
  • It is imperative that all the important managerial and commercial decisions pertaining to the company are taken in India.
  • A firm or company not adhering to the above two conditions would naturally attain the status of non-resident.