residential status of company

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richa (Querist)
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31 December 2010 if ANY of the Indian Company's Board meetings during the year are held abroad or over the Internet through web meetings, will it be considered as business PARTLY controlled from outside India? and then will the company be considered as Non-resident?
What are the tax implications for Non resident Company as opposed to Resident Company?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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01 January 2011 An Indian company is always treated as resident irrespective of place of its control and management. Section 6(3).

Taxability of Income depends upon residential status. In case of a resident company its worldwide income is taxable in India whereas in case of non resident only Indian Income is taxable. Please refer Section 5 of the Income Tax Act for more clarity.

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