04 June 2014
Invoice material : 1000000 transport charges paid : 42000 on behalf of client total bill amt :1042000
My question : 1. is their any obligation of deduct TDS on Rs.42000/- which is reimbursement of transport charge ? 2. what if supplier uses his own vehicle for delivery ?
05 June 2014
No TDS is to be effected on the reimbursement of Transport charges. This is true if a hired vehicle is used or own vehicle is used. The basis for this is Subsection 6 of 194C which specifically excludes transport charges from the purview of the section.
CAclubindia
