https://www.taxtmi.com/highlights?id=97080 The note addresses TDS obligations where payments calculated as fixed percentages of net sales were treated as reimbursements; it states that such payments lacked bills or vouchers and were contractual consideration for services (advertising, sales promotion, handling, storage). The legal principle applied is that genuine reimbursements must correspond to verifiable post-facto expenses supported by documentation, whereas fixed-percentage payments that are contractual fall within the TDS charging provisions and require deduction at payment or credit. Consequently, failure to deduct justified disallowance under the relevant tax disallowance provision. en-us Sat, 21 Feb 2026 12:55:34 +0530 Sat, 21 Feb 2026 12:55:34 +0530 TaxTMI RSS Generator https://www.taxtmi.com/highlights?id=97080 The note addresses TDS obligations where payments calculated as fixed percentages of net sales were treated as reimbursements; it states that such payments lacked bills or vouchers and were contractual consideration for services (advertising, sales promotion, handling, storage). The legal principle applied is that genuine reimbursements must correspond to verifiable post-facto expenses supported by documentation, whereas fixed-percentage payments that are contractual fall within the TDS charging provisions and require deduction at payment or credit. Consequently, failure to deduct justified disallowance under the relevant tax disallowance provision. Highlights Income Tax Sat, 21 Feb 2026 12:55:34 +0530 https://www.taxtmi.com/highlights?id=97080