12 August 2016
payment of 100000 is made against bharath petroleum in a year. Means total travelling expense. Will this comes under the provision of 194c.
14 July 2024
No, the payment of ₹100,000 made against Bharat Petroleum for traveling expenses does not fall under the provisions of Section 194C of the Income Tax Act, 1961.
### Understanding Section 194C:
- **Section 194C** deals with payments made to contractors or sub-contractors for carrying out any work, including supply of labor for any work. It is typically applicable when there is a contract for carrying out work and payment is made to fulfill that contract.
### Application to Traveling Expenses:
- Traveling expenses paid to Bharat Petroleum for fuel or related expenses would generally be considered as a reimbursement for actual expenses incurred, rather than a payment for carrying out any work or service.
- Since it's a reimbursement of actual expenses (likely for fuel or travel-related costs), it does not constitute a payment to a contractor or sub-contractor for carrying out work or providing services.
### Conclusion:
- Therefore, payments made against Bharat Petroleum for traveling expenses do not attract TDS under Section 194C because they are not payments for work or services rendered. Instead, they are considered reimbursements for actual expenses incurred by the person making the payment.
### Tax Deduction at Source (TDS) Consideration:
- As per income tax laws, TDS provisions under Section 194C apply to payments made for work done or services rendered. Since traveling expenses are not considered payments for services under Section 194C, there is no requirement to deduct TDS on such reimbursements.
### Documentation and Compliance:
- It's important to maintain proper documentation, such as invoices or bills from Bharat Petroleum, to substantiate that the payment of ₹100,000 was indeed for traveling expenses reimbursed and not for any contractual work or services.
In summary, traveling expenses reimbursed to Bharat Petroleum do not fall under Section 194C for TDS purposes because they are reimbursements for actual expenses and not payments for services rendered under a contract.
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