MANU/DTCR/0006/2000
Ministry
: Ministry of Finance
Department
/ Board :CBDT
Circular
No : 790
Date
: 20.04.2000
Notification/ Circulars Referred: Circular No. 769 dated 6th August,
1998 MANU/DTCR/0011/1998
Referred IN
Subject: Direct Taxation
Procedure
for Refund of Tax Deducted at Source Under Section 195 to the Person
Deducting the Tax
All
Chief Commissioners of Income-tax ;
All
Directors-General of Income-tax.
1.
The Board has issued Circular No. 769 dated 6th August,
1998, laying
down procedure for refund of tax deducted under section 195, in
certain situations to the person deducting the tax at source from the
payment to the non-resident. After reconsideration, Circular No. 769
is revoked with immediate effect and refund to the person deducting
tax at source under section 195 shall be allowed in accordance with
the provisions of this circular.
2.
The Board had received representations for approving grant of refund
to the persons deducting tax at source under section 195 of the
Income-tax Act, 1961. The cases referred to the Board mainly related
to circumstances where after the deposit into Government account of
tax deducted at source under section 195,
(a)
the contract is cancelled and no remittance is made to the
nonresident ;
(b)
the remittance is duly made to the non-resident, but the contract is
cancelled. In such cases, the remitted amount may have been returned
to the person responsible for deducting tax at source.
In
the cases mentioned above, income does not accrue to the
non-resident. The amount d........