Grossing up of TDS on payment to Non resident

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yogesh vijaykumar shah

yogesh vijaykumar shah (Querist)
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13 October 2010 Sir,
Let me know as per which section we have to gross up of TDS for payment to non resident.

Aditya Maheshwari

Aditya Maheshwari (Expert)
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13 October 2010 As per 195A
51[Income payable “net of tax”.52

195A. 53[In a case other than that referred to in sub-section (1A) of section 192, where under an agreement] or other arrangement, the tax chargeable on any income referred to in the foregoing provisions of this Chapter is to be borne by the person by whom the income is payable, then, for the purposes of deduction of tax under those provisions such income shall be increased to such amount as would, after deduction of tax thereon at the rates in force for the financial year in which such income is payable, be equal to the net amount payable under such agreement or arrangement.]