Insertion of new section 194LC.

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..... here any income by way of interest referred to in sub-section (2) is payable to a non-resident, not being a company or to a foreign company by a specified company, the person responsible for making the payment, shall at the time of credit of such income to the account of the payee or at the time of payment thereof in cash or by issue of a cheque or draft or by any other mode, whichever is earlier, .....

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..... ve the meaning assigned to it in clause (m) of section 2 of the Foreign Exchange Management Act, 1999; (42 of 1999.) (b) specified company means an Indian company engaged in the business of (i) generation or distribution or transmission of power; or (ii) operation of aircraft; or (iii) manufacture or production of fertilizers; or .....

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..... ment shall deduct income-tax thereon at the rate of five per cent. at the time of credit of such income to the account of the payee or at the time of payment thereof in cash or by issue of a cheque or draft or by any other mode, whichever is earlier. It further provides that the interest shall be income by way of interest payable by the specified company in respect of any monies borrowed by it .....

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