https://www.taxtmi.com/caselaws?id=792070 Composite installation contract payments were examined for TDS purposes under section 194C and consequent disallowance under section 40(a)(ia). The material component of the contract was treated as outside TDS deduction in the assessee's hands, while the labour or service component had to be tested separately against the actual deductions made and the statutory monetary limits. Payments below the prescribed threshold were not subject to deduction, and only the balance amount on which tax was deductible but not deducted could be considered for disallowance. The disallowance was also stated to be restricted to 30% where applicable, limiting the TDS default adjustment to the deductible service portion only. en-us Wed, 20 May 2026 00:00:00 +0530 Fri, 22 May 2026 07:06:42 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=792070 Composite installation contract payments were examined for TDS purposes under section 194C and consequent disallowance under section 40(a)(ia). The material component of the contract was treated as outside TDS deduction in the assessee's hands, while the labour or service component had to be tested separately against the actual deductions made and the statutory monetary limits. Payments below the prescribed threshold were not subject to deduction, and only the balance amount on which tax was deductible but not deducted could be considered for disallowance. The disallowance was also stated to be restricted to 30% where applicable, limiting the TDS default adjustment to the deductible service portion only. Case-Laws Income Tax Wed, 20 May 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=792070