194Q in income Tax Act 1961

This discussion clarifies the applicability of TDS under Section 194Q of the Income Tax Act, 1961. It explains that for TDS to be deductible, the buyer's total turnover must exceed ₹10 crores in the previous financial year, AND their aggregate purchases from a single seller must exceed ₹50 lakhs during that same period. In the scenario presented, where the buyer's turnover is over ₹10 crores but their total purchase value from the seller is less than ₹50 lakhs, TDS is not applicable. The seller's turnover is irrelevant for this section.