194Q applicability on High Sea Purchases

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This discussion clarifies the applicability of TDS under Section 194Q for high sea purchases. If both the buyer and seller are residents of India, and the buyer's turnover exceeds the threshold, TDS u/s 194Q is applicable on high sea purchases if the annual purchase value from a single vendor exceeds Rs. 50 lakhs. However, this section does not apply to import purchases from non-resident suppliers.

Vipul Acharya

Vipul Acharya (Querist)
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05 August 2021 I have vendors who are registered in Delhi, I do High Sea Purchases and Import Purchases from him

Is TDS u/s 194q applicable against goods purchased from them

Deepa B

Deepa B (Expert)
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06 August 2021 In the given case supplier and buyer (i.e.,you) both are residents and you are paying consideration against purchases during the year. If your entity's previous financial year turnover threshold criteria is met, and purchases from the said supplier has crossed Rs.50 lacs in current financial year, then you have to deduct tax u/s 194Q. Because there is no exception carved out for high sea purchases.
But it's not applicable on import purchases from supplier outside India (i.e., not a resident)