25 July 2008
The following amounts shall not be deducted in computing the income chargeable under the head "Profits and gains of business or profession"-
1. any interest , royalty, fees for technical services or other sum chargeable,which is payable (A) outside India; or
(B) in India to a non-resident, not being a company or to a foreign company,
On which tax has not been paid or deducted.
Provided that if tax has been paid or deducted in any subsequent year, such sum shall be allowed as a deduction in the previous year in which such tax has been paid or deducted.
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