Weighted deduction for cross-border services: labour costs may qualify while raw material costs generally do not. Clause (viii) of Section 35B permits weighted deduction only for expenditure incurred in the performance of services outside India in connection with or incidental to execution of a contract for supply outside India. Costs of raw material for fulfilling the contract generally do not qualify, while expenditure on supplying labour for executing the contract ordinarily qualifies, and the place of drafting that labour (locally or abroad) does not affect the claim; each case depends on its factual matrix.