What is Section 194Q — TDS on purchase of goods?

Key mapping

Section 194Q requires buyers to deduct TDS at 0.1% on purchase of goods from a resident seller where turnover exceeds ₹10 crore and payment/aggregate exceeds ₹50 lakh. Carried forward under IT Act 2025 §393.

Explanation

Section 194Q (introduced by Finance Act 2021) applies to buyers with turnover > ₹10 crore in the preceding year who purchase goods from a resident seller where the aggregate credit/payment in the year exceeds ₹50 lakh. Rate is 0.1% on the amount exceeding ₹50 lakh. This provision overrides TCS under 206C(1H) for the same transaction — only one of the two applies. Under IT Act 2025, this moves to §393. Not applicable where TDS is otherwise deductible on the same transaction.

Related terms and sections

194Q purchase of goods 0.1 percent 50 lakh turnover 10 crore section 393 TDS on goods

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Related sections

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All section references are sourced from the Income Tax Act 2025 (official gazette, incometaxindia.gov.in) and cross-referenced against CBDT's comparative statement. Always verify on the official portal before filing. This page is for reference only and does not constitute legal or tax advice.

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