https://www.taxtmi.com/caselaws?id=258715 For tax deduction purposes, the true character of the transaction governs whether payments fall within the works contract regime. A branded battery purchase manufactured to specification, without supply of raw material or control over production by the buyer, remains a contract of sale and is outside tax deduction on that footing. By contrast, where the buyer arranges raw materials, finances working capital, and the arrangement reflects manufacture or assembly for consideration, the payment is treated as job work and attracts deduction. Amounts routed through agents as so-called reimbursements do not escape deduction when they are, in substance, payments for third-party services that would otherwise be liable. en-us Wed, 21 Jan 2015 00:00:00 +0530 Sat, 18 Apr 2015 06:30:43 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=258715 For tax deduction purposes, the true character of the transaction governs whether payments fall within the works contract regime. A branded battery purchase manufactured to specification, without supply of raw material or control over production by the buyer, remains a contract of sale and is outside tax deduction on that footing. By contrast, where the buyer arranges raw materials, finances working capital, and the arrangement reflects manufacture or assembly for consideration, the payment is treated as job work and attracts deduction. Amounts routed through agents as so-called reimbursements do not escape deduction when they are, in substance, payments for third-party services that would otherwise be liable. Case-Laws Income Tax Wed, 21 Jan 2015 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=258715