When will you consider a foreign company as a resident company in India ?

With effect from Assessment Year 2017-18, a Foreign Company is treated as resident company in India for tax purposes u/s 6(3) of the Income Tax Act, 1961, if its Place of Effective Management 'POEM' at any time during the previous year is in India; and Explanation: For the purposes of this clause "place of effective management" means a place where key management and commercial decisions that are necessary for the conduct of business of an entity, as a whole are, in substance made. As per CBDT Circular No. 8/2017, dated 23 February 2017, POEM guidelines issued by CBDT vide circular no 6/2017 dated 24th January, 2017 shall not apply to companies whose turnover or gross receipts are ₹50 crores or less in a financial year.