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TDS - 194Q

KUSHALPRAKASHSINGH RAJPUT (ACCOUNTANT) (21 Points)

25 March 2025

Dear Experts,

Example - We had given an advance to vendor Rs. 50 lakh on 01.01.2025 and this time we have not deducted TDS under 194Q. After one month, vendor has raised 3 invoices of Rs. 60 lakh, 70 lakh and 80 lakh on 25.03.2025 (all taxable amt) simultaneously.

Please let me how how to deduct TDS under 194Q. @ 0.1%.

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1 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (185664 Points)
Replied 26 March 2025

As per explanation to section 194Q, the term ‘buyer’ means as under- A person having total sales/ gross receipts/ turnover exceeding INR 10 Crores in the immediately preceding Financial Year in which the specified purchase of goods took place

So, if you are buyer....

As per provisions of section 194Q of the Income Tax Act, TDS is deductible if-

The buyer is responsible for making payment of a sum to the resident seller; and Such payment is to be done for the purchase of goods of the value/ aggregate of the value exceeding INR 50 Lakhs.
The buyer is liable to deduct TDS at the rate of 0.1% of the purchase value above INR 50 Lakhs. So, in your case TDS is to be deducted over purchase of Rs. 1.60 lakhs...