https://www.taxtmi.com/caselaws?id=360147 Payments for customised printed packing material were treated as sale transactions, not works contracts, so no tax deduction obligation arose under section 194C. The Tribunal held that section 40(a)(ia) can apply only to the extent a payment is shown to be subject to TDS, and a blanket estimated disallowance cannot be sustained without identifying the portion, if any, that actually attracts deduction. Relying on the CBDT circular and judicial precedent, it noted that printing a logo, name or product particulars on packing material does not by itself convert a sale into a works contract. The disallowance was therefore held unsustainable. en-us Wed, 09 May 2018 00:00:00 +0530 Wed, 09 May 2018 18:31:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=360147 Payments for customised printed packing material were treated as sale transactions, not works contracts, so no tax deduction obligation arose under section 194C. The Tribunal held that section 40(a)(ia) can apply only to the extent a payment is shown to be subject to TDS, and a blanket estimated disallowance cannot be sustained without identifying the portion, if any, that actually attracts deduction. Relying on the CBDT circular and judicial precedent, it noted that printing a logo, name or product particulars on packing material does not by itself convert a sale into a works contract. The disallowance was therefore held unsustainable. Case-Laws Income Tax Wed, 09 May 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=360147