How will you decide the residential status of the following companies or firms for the Previous Year 2016-17 under the provisions of Income Tax Act, 1961? Give brief reasons for your answer: (ii) PQR Ltd., a company inco

As per the provision of Section 6(3) of the Income tax Act, 1961 for the Financial Year 2016-17, All Indian companies within the meaning of Section 2(26) of the Act are always resident in India regardless of the place of control and management of its affairs. Further, in the case of a foreign company, for the FY 2016-17, the place of control and management of its affairs is the basis on which the company's residential status is determinable. Accordingly a company shall be said to be resident in India in any previous year, if- it is an Indian company; or the control and management of its affairs is wholly situated in India. PQR Ltd. , a company incorporated in Germany, of which the control and management of the affairs of the business is situated wholly in India. As the control and management of the affairs of the business of PQR Ltd. is situated wholly in India and accordingly PQR Ltd. shall be a resident in India.