Deduction of tds on reimbursement of transport charges ?

This query is : Resolved 

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 ?

waiting for the views of the experts.

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.


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