TDS ON ANY PURCHASE OF ANY GOODS - 393(1)

Hello, TDS under 393, TDS on purchase of goods. TDS is to be deducted on Credit or Payment whichever is earlier.

Credit meaning, whenver the sellers account is credited, that is purchase entry is passed

Payment meaning, whenever the payment is made to seller

which ever is earlier at that time tds is deducted and deposited

The seller's view is not quite right. For TDS on purchase of goods, the deduction point is the EARLIER of credit to the seller's account or payment. So an advance payment does trigger TDS, you do not wait for the purchase invoice.

Points to check:
- TDS applies only on the amount that goes beyond Rs 50 lakh of purchases from that seller in the financial year, at 0.1%. Below that, nothing to deduct.
- If the seller has already collected TCS on the same sale, you should not deduct TDS on it again.
- If you pay an advance and later get the invoice, TDS already deducted on the advance is not deducted again on the invoice. Track it seller-wise so the total does not exceed 0.1% of the amount above Rs 50 lakh.
- Check that the Rs 50 lakh is counted on the full year's purchases from SML Mahindra, buses and spares together, not month by month.

Since you are in FY 2026-27, quote the section under the Income-tax Act 2025 (s.393 table) in your reply to the seller, and keep a seller-wise ledger showing credit date, payment date, and TDS deducted. That ledger is what settles this with them. ,  a practising professional