n NISM Certifications
X NISM Series X
Medium

A foreign company with Indian operations and a turnover below Rs. 50 crores, with decision-making centralized overseas, is classified as a non-resident for Indian tax purposes, based on the place of effective management.

Practice question from NISM Series XB- Investment Adviser (Level 2) Mock Test 1 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Resident

  2. Non-Resident

    Correct answer

  3. C

    Ordinarily Resident

  4. D

    Not-ordinarily Resident

Why this is the answer

The company’s management being outside India and turnover below Rs. 50 crores classify it as a non-resident for tax purposes.

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