56. Deduction from income of non-residents.-

56. Deduction from income of non-residents.- 

1[(1) Subject to the provisions of sub-section (2), the specified person or any other person responsible for making payment to a non-resident of any amount which constitutes the income of such non-resident chargeable to tax under this Ordinance shall, unless such person is himself liable to pay tax thereon as agent, at the time of making such payment, deduct tax on the amount so payable at the rate, specified below:

SL.No Description of services or payments Rate of deduction of tax
1 Advisory or consultancy service 20%
2 Pre-shipment inspection service 20%
3 Professional service, technical services, technical know-how or technical assistance 20%
4 Architecture, interior design or landscape design, fashion design or process design 20%
5 Certification, rating etc. 20%
6 Charge or rent for satellite, airtime or frequency, rent for channel broadcast 20%
7 Legal service 20%
8 Management service including even management 20%
9 Commission 20%
10 Royalty, license fee or payments related to intangibles 20%
11 Interest 20%
12 Advertisement broadcasting 20%
13 Advertisement making 2[or Digital marketing]


14 Air transport or water transport 7.5%
15 Contractor or sub-contractor of manufacturing, process or conversion 7.5%
16 Supplier 7.5%
17 Capital gain 15%
18 Insurance premium 10%
19 Rental of machinery, equipment etc. 15%
20 Dividend-
(a) company—-
(b) any other person, not being a company—
21 Artist, singer or player 30%
22 Salary or remuneration 30%
23 Exploration or drilling in petroleum operations 5.25%
24 Survey for oil or gas exploration 5.25%
25 Any service for making connectivity between oil or gas field and its export point 5.25%
26 Any payments against any services not mentioned above 20%
27 Any other payments 30%

(2) Where the Board, on an application made in this behalf, gives a certificate that, to the best of its belief, the non-resident will not be liable to pay any tax under this Ordinance, or will be liable to pay tax at a rate less than the maximum rat, payment preferred to in sub-section (1) shall be made without any deduction, or, as the case may be, with deduction at the lesser rate specified in the certificate.
(3) In this section,-

(i) “specified person” shall have the same meaning as in clause (a) of sub-section (2) of section 52 of this Ordinance;

(ii) “payment” includes a transfer, a credit or an adjustment of payment.]


1 Subs. by F. A. 2016
Subs. by F. A. 2017


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