(a) whether expenditure incurred on purchase of raw materials and payment of wages will qualify for weighted deduction within the meaning of section 35B; and (b) whether drafting of labour for execution of such a contract locally or abroad would make any difference in the claim for weighted deduction. https://www.taxtmi.com/circulars?id=10363 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. en-us Thu, 04 Sep 1975 00:00:00 +0530 Fri, 17 Jun 2011 18:53:00 +0530 TaxTMI RSS Generator (a) whether expenditure incurred on purchase of raw materials and payment of wages will qualify for weighted deduction within the meaning of section 35B; and (b) whether drafting of labour for execution of such a contract locally or abroad would make any difference in the claim for weighted deduction. https://www.taxtmi.com/circulars?id=10363 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. Circulars Income Tax Thu, 04 Sep 1975 00:00:00 +0530 https://www.taxtmi.com/circulars?id=10363