can anyone explain section 194?

Did you mean whether section 194(TDS on dividend)is applicable to foreign companies also?

may be. I'm reading bonus act...here they mentioned company which has not made arrangements under section 194 of income tax act......can u please clarify it...??

Allocable surplus [Section 2(4)]: Allocable surplus means:
(i) In case where company is employer- Where a company (other than a banking company)
which has not made the arrangements prescribed under the Income-tax Act, 1961 for the
declaration and payment within India of the dividends payable out of its profits in accordance
with the provisions of Section 194 of that Act- there 67% of the allocable surplus in an
accounting year shall be the allocable surplus,
(ii) In any other case of employer- the allocable surplus means 60% of such available
surplus