Place of effective management (POEM) risk — do I need an adviser, or can I do it alone?
Some of it, yes — and we will say so on the call if that is the honest answer. The parts that are worth paying for are the ones where a missed election, a missed deadline or an unverified threshold costs more than the fee: the test looks at where substantive decisions are actually taken rather than where meetings are formally convened.
What if I have already filed and got it wrong?
That is a common starting point. We re-derive the position, identify whether an amendment or a disclosure route is the right vehicle, and tell you which one preserves the relief that is still available. The order matters more than the speed.
How long will it take?
It depends on the documents rather than on us. Once the pack is complete most filings turn around inside a fortnight; anything that needs a certificate from a tax authority runs on that authority's timetable, which we tell you at the start rather than at the end.
What is place of effective management and why does it matter?
Place of effective management looks at where the key commercial and management decisions of a company are actually made, rather than where it is incorporated. If that decision-making happens substantially in India, the company can be treated as tax resident there even though it was formed abroad, exposing its worldwide income to Indian tax. The test is fact-specific, turning on where board decisions are genuinely taken rather than where meetings are formally held on paper.
Can a foreign company become tax resident in India under this rule?
Yes. A company incorporated outside India can still be treated as resident there if its effective management is found to sit in India, typically because directors based in India are making the substantive decisions rather than simply implementing choices made abroad. The consequence is that the company's worldwide income, not just its Indian-source income, becomes subject to Indian tax. We review board composition and decision records to assess this exposure before it becomes a dispute.
How can a company reduce its exposure to this residency rule?
Reducing exposure generally means making sure that strategic and commercial decisions are genuinely made, documented, and held outside India where that is intended, rather than merely holding formal board meetings abroad while the real decisions happen elsewhere. Director location, meeting records, and who actually exercises authority over day-to-day commercial choices all feed into the analysis. We review a company's governance structure and paper trail against the test before a dispute arises.
What are Forms 15CA and 15CB for?
They clear a payment out of India. Form 15CA is the remitter's declaration of the payment and the tax withheld on it; Form 15CB is an accountant's certificate on the taxability of the amount, the treaty article relied on and the correct withholding rate. The bank generally will not execute the transfer without them, in the categories where they are required. The work is deciding the rate correctly, because the certificate is the record of that decision. See 15CA and 15CB certification.
What is RNOR status and why does it matter to a returning NRI?
Resident but Not Ordinarily Resident is a transitional Indian status that can apply for a limited period after you return, based on how long you were non-resident before. While it lasts, certain foreign income stays outside the Indian net that would be taxed once you become an ordinary resident — which makes the timing of a return date, and of realising foreign gains, a genuine planning decision rather than an administrative one. See the RNOR window.
