Deductibility of cross-border payments limited where tax has not been withheld or paid under withholding provisions. Amendment disallows deduction for interest, royalty, fees for technical services and other sums paid outside India or to non-residents (including foreign companies) where tax has not been deducted or, after deduction, not paid within the time prescribed under section 200 and in accordance with Chapter XVII-B; deductibility is restored in the year tax is deducted under Chapter XVII-B or paid. It also disallows deduction for salaries payable outside India or to non-residents if tax has not been paid or deducted under Chapter XVII-B. Definitions of royalty and fees for technical services follow the specified explanations to section 9.