Clarification contained in Circular No. 155, dated 21-12-1974 reiterated to ensure proper computation of tax to be deducted at source in the case of non-resident whose tax liability is to be borne by payer

Clarification contained in Circular No. 155, dated 21-12-1974 reiterated to ensure proper computation of tax to be deducted at source in the case of non-resident whose tax liability is to be borne by payer https://www.taxtmi.com/circulars?id=4556 When a payer bears a non-resident's tax, the payer must gross up the net-of-tax payment to determine the income chargeable to the non-resident and deduct tax at source on that grossed-up amount. The tax so deducted must be paid to the credit of the Central Government within the prescribed time. Failure to deduct or remit the tax renders the payer liable for the tax, interest on the unpaid amount, penalties, and potential criminal prosecution for willful default. en-us Sat, 21 Dec 1974 00:00:00 +0530 Wed, 30 Jul 2008 15:09:00 +0530 TaxTMI RSS Generator Clarification contained in Circular No. 155, dated 21-12-1974 reiterated to ensure proper computation of tax to be deducted at source in the case of non-resident whose tax liability is to be borne by payer https://www.taxtmi.com/circulars?id=4556 When a payer bears a non-resident's tax, the payer must gross up the net-of-tax payment to determine the income chargeable to the non-resident and deduct tax at source on that grossed-up amount. The tax so deducted must be paid to the credit of the Central Government within the prescribed time. Failure to deduct or remit the tax renders the payer liable for the tax, interest on the unpaid amount, penalties, and potential criminal prosecution for willful default. Circulars Income Tax Sat, 21 Dec 1974 00:00:00 +0530 https://www.taxtmi.com/circulars?id=4556