TDS on Purchase of Goods 194Q

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Discussion on applicability of TDS under Section 194Q on purchase of goods exceeding Rs. 50 lakh. Experts clarified that Section 194Q does not apply because the buyer's turnover in the preceding financial year was below the RS. 10 crore threshold.

Husseini

Husseini (Querist)
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27 January 2026 We have purchased goods from one seller of Rs.51,42,380/- including GST amount. So, should we deduct TDS 0.1%
In financial year 2024-2025 our Turnover is 3 Cr.

CMA BABU.D

CMA BABU.D (Expert)
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27 January 2026 No, Section 194Q is NOT applicable to you.

Why 194Q doesn’t apply
Section 194Q (TDS on purchase of goods) applies only if:
- Buyer’s turnover in the immediately preceding FY > INR 10 cr mandatory condition
- Purchase from a seller exceeds INR 50 lakh in the current FY

In your case: FY 24–25 turnover = INR 3 cr | This is below INR 10 cr | So 194Q TDS is not applicable, even though you purchased INR 51 lakh (incl. GST) from a single seller.

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Husseini

Husseini (Querist)
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28 January 2026 Thank you for reply sir

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