TDS on purchase 194Q

If insurance and freight are charged by the supplier in the same purchase invoice and form part of value of goods, then they must be included while calculating TDS under Section 194Q (excluding GST).

If freight is paid separately to transporter, then 194Q does not apply on that portion.

If freight and insurance are included in the same purchase invoice, deduct TDS on the total amount (including them).

If freight or insurance is billed separately, do not include them in 194Q—check separate TDS applicability (e.g., 194C).

Under Section 194Q, buyers with turnover above ₹10 crore must deduct TDS at 0.1% on goods purchases exceeding ₹50 lakh from a resident seller in a financial year.