- the payee is resident in India (under sec.6)
- the fees is paid to the account of the payee on or after 1july 1995
- the fees paid to the account of the payee during the financial year exceeds Rs. 20,000.Thus where it is up to Rs. 20,000no tax is deducted. Where it exceeds Rs. 20,000, tax is deducted on the whole amount of such fees.
Routine/normal maintenance contracts which include supply of shares will be covered under Sec. 194C.
- Payment made prior to 1 June 2007
- Payment made on or after 1 June 2007