TCS & TDS applicability on Petrol pumps purchases

This query is : Resolved

Quick Summary

From 01-04-2025, petrol pump dealers may need to deduct TDS under Section 194Q on purchases from oil companies like BPCL if purchases exceed Rs 50 lakh and the dealer's previous year turnover exceeds Rs 10 crore. TCS under Section 206C(1H) on sale of goods has been removed for such transactions.

phanikumar kuricheti

phanikumar kuricheti (Querist)
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05 May 2025 Namaste sir,

We are one of the petrolium dealer of BPCL company and maintaining petrol pump books .From 01-04-2025 how can we calculate tds or tcs on Bhrath petrolium pump transactions . We dont know how to calculate and file TDS or TCS. So, Kindly suggest us with your valuable reply.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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05 May 2025 Petrol pump dealer (buyer), must deduct TDS on purchases from BPCL if:
Your total purchases from BPCL in the financial year exceed ₹50 lakhs.
Your turnover in the preceding financial year was more than ₹10 crores.
0.1% of the purchase value exceeding ₹50 lakhs in a financial year.

Section 206C(1H) (TCS on Sale of Goods) is removed. Dealers like BPCL will no longer collect TCS on sales of petroleum products to petrol pumps.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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28 September 2025 Good luck.....

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