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Section 194Q TDS applicability on purchase of foreign currency for travelling

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Amit Patel (Querist)
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26 October 2024 TDS on Purchase of goods

I'm looking for clarification on the applicability of TDS under Section 194Q when purchasing foreign currency from a single vendor.

According to Section 194Q, it applies to the "purchase of any 'goods' of the value or aggregate value exceeding..." However, the definition of "goods" specifically excludes 'money' and securities.

I would appreciate any insights or references to relevant guidelines on this matter. Thank you!

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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26 October 2024 If the purchase of goods is covered under Section 206C (Tax Collected at Source) of the Income Tax Act (except for subsection 1H), then the seller is responsible for collecting tax, and you are not required to deduct TDS under Section 194Q.

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