Tax deduction at source on payments to non-residents now required at credit or payment, with account-credit deemed payment. Any person paying a non-resident (other than a company) or a foreign company interest (other than interest on securities) or other sums chargeable under the Act (excluding salaries and dividends) must deduct income-tax at rates in force at the earlier of credit to the payee's account or payment. Crediting such sums to any account in the payer's books is deemed credit to the payee and triggers the deduction. Sub-section (2) replaces 'by general or special order' with 'in the prescribed manner' and excludes certain interest, royalty and technical services payments to foreign companies from its application.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Tax deduction at source on payments to non-residents now required at credit or payment, with account-credit deemed payment.
Any person paying a non-resident (other than a company) or a foreign company interest (other than interest on securities) or other sums chargeable under the Act (excluding salaries and dividends) must deduct income-tax at rates in force at the earlier of credit to the payee's account or payment. Crediting such sums to any account in the payer's books is deemed credit to the payee and triggers the deduction. Sub-section (2) replaces "by general or special order" with "in the prescribed manner" and excludes certain interest, royalty and technical services payments to foreign companies from its application.
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