194Q TDS appplicable or not both turnover less than 10 cr

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This discussion clarifies the applicability of TDS under Section 194Q for the financial year 2021-22. Even though the current year's turnover is below ₹10 crore, if the previous year's turnover exceeded ₹10 crore, TDS deduction is still mandatory for the buyer. The purchaser's turnover being ₹2 crore is also relevant in this context.

ARCHANA

ARCHANA (Querist)

04 March 2022 Sir/mam,

This FY 2021-22 Turnover is 7 Cr PY 2020-21 turnover is 21 Cr and purchaser turnover is FY 21-22 2 cr , we can deduct tds to purchaser both turnovers is lessthan 10cr in this financial year ,

Plz kindly suggest tds 194q applicable or not

CA Puja Sharma

CA Puja Sharma (Expert)

04 March 2022 Since your previous year's turnover was more than Rs. 10 crores, you are liable o deduct TDS u/s 194Q in the current FY 2021-22.

Message likes : 1 times

ARCHANA

ARCHANA (Querist)

04 March 2022 Thank you sir for your quick reply

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)

28 October 2026 Only the buyer's previous-year turnover (over ₹10 crore) and purchases from one seller above ₹50 lakh in the year matter — the seller's turnover is irrelevant; from 1-4-2025 TCS u/s 206C(1H) is omitted, so only the buyer's TDS (now Sec 393 of the IT Act 2025) remains.

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