Is TDS applicable on the purchase of goods under Section 194Q?

Question

tdsguru.in (CA firm) · Accepted Answer

Yes — a buyer whose turnover exceeded ₹10 crore in the previous year deducts 0.1% on the value of goods purchased from a seller above ₹50 lakh in the year. Section 194Q applies to a buyer whose total sales/turnover/gross receipts exceeded ₹10 crore in the immediately preceding financial year. On purchases of goods from a resident seller, deduct 0.1% on the aggregate value exceeding ₹50,00,000 in the financial year (5% if the seller has no PAN). Note that TCS on sale of goods under Section 206C(1H) was withdrawn from 1 April 2025, so only the buyer's 194Q TDS now applies — the old buyer-seller cross-declaration is no longer needed.