Report No. 12
204. Other sums.-
(1) Any person responsible for paying to a non-resident any sum chargeable under the provisions of this Act, (not being income chargeable under the head "Salaries" or "Interest on securities", and not being a dividend) shall, at the time of payment, unless he is himself liable to pay any income-tax and super-tax thereon as an agent, deduct on such sum-
(a) income-tax at the maximum rate, and
(b) super-tax-
(i) in the case of a company, at the rate applicable to a company which has not made the arrangements for the deduction of super-tax referred to in section 203 [18(3D)];
(ii) in the case of any other person, in accordance with the provisions of section 124(1) (b) [17(1) (b)];
[Section 18(3B), main para.]
Provided that nothing in this sub-section shall apply to any payment made in the course of transactions in respect of which a person responsible for the payment is deemed under section 173(1), Proviso [section 43, First Proviso] not to be an agent of the payee.
[Section 18(3B), proviso]
(2) Where the person responsible for paying any such sum (other than interest) to a non-resident considers that the whole of such sum would not be income chargeable in the case of the recipient, he may make an application to the Income-tax Officer to determine, by general or special order, the appropriate proportion, of such sum so chargeable, and upon such determination tax shall be deducted under sub-section (1) only on that proportion of the sum which is so chargeable.
[Section 18(3C)]
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