{"id":1730,"date":"2025-03-24T18:01:11","date_gmt":"2025-03-24T12:31:11","guid":{"rendered":"https:\/\/www.caclubindia.com\/guide\/?p=1730"},"modified":"2025-06-26T15:55:44","modified_gmt":"2025-06-26T10:25:44","slug":"section-194q-of-income-tax-act","status":"publish","type":"post","link":"https:\/\/www.caclubindia.com\/guide\/section-194q-of-income-tax-act\/","title":{"rendered":"Section 194Q: Relief for Sellers from 1st April 2025"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"538\" src=\"https:\/\/www.caclubindia.com\/guide\/wp-content\/uploads\/2025\/03\/Section-194Q-1024x538.png\" alt=\"\" class=\"wp-image-1732\" srcset=\"https:\/\/www.caclubindia.com\/guide\/wp-content\/uploads\/2025\/03\/Section-194Q-1024x538.png 1024w, https:\/\/www.caclubindia.com\/guide\/wp-content\/uploads\/2025\/03\/Section-194Q-300x158.png 300w, https:\/\/www.caclubindia.com\/guide\/wp-content\/uploads\/2025\/03\/Section-194Q-768x403.png 768w, https:\/\/www.caclubindia.com\/guide\/wp-content\/uploads\/2025\/03\/Section-194Q.png 1200w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p>Section 194Q, introduced via the Finance Act 2021 and effective from 1st July 2021, mandates Tax Deducted at Source on the purchase of goods exceeding a specified threshold.<\/p>\n\n\n\n<p>This provision aims to enhance tax compliance, track high-value transactions, and widen the tax net.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\r\n<div class=\"ez-toc-title-container\">\r\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\r\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\r\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.caclubindia.com\/guide\/section-194q-of-income-tax-act\/#Applicability\" >Applicability<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.caclubindia.com\/guide\/section-194q-of-income-tax-act\/#Major_Relief_for_Sellers_from_FY_2025-26\" >Major Relief for Sellers from FY 2025-26<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.caclubindia.com\/guide\/section-194q-of-income-tax-act\/#Rate_of_TDS\" >Rate of TDS<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.caclubindia.com\/guide\/section-194q-of-income-tax-act\/#For_Example\" >For Example<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.caclubindia.com\/guide\/section-194q-of-income-tax-act\/#Calculation\" >Calculation<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.caclubindia.com\/guide\/section-194q-of-income-tax-act\/#Time_of_Deduction\" >Time of Deduction<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.caclubindia.com\/guide\/section-194q-of-income-tax-act\/#Due_Date_To_Deposit_TDS\" >Due Date To Deposit TDS<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.caclubindia.com\/guide\/section-194q-of-income-tax-act\/#Key_Points\" >Key Points<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.caclubindia.com\/guide\/section-194q-of-income-tax-act\/#Non-furnishing_of_PAN\" >Non-furnishing of PAN<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.caclubindia.com\/guide\/section-194q-of-income-tax-act\/#GST_Consideration\" >GST Consideration<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.caclubindia.com\/guide\/section-194q-of-income-tax-act\/#TDS_us_194Q_Vs_TCS_us_2061H\" >TDS u\/s 194Q Vs TCS u\/s 206(1H)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.caclubindia.com\/guide\/section-194q-of-income-tax-act\/#Conclusion\" >Conclusion<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.caclubindia.com\/guide\/section-194q-of-income-tax-act\/#FAQs\" >FAQs<\/a><\/li><\/ul><\/nav><\/div>\r\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Applicability\"><\/span>Applicability<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>This section applies to buyers meeting specific criteria:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Buyers with turnover exceeding Rs 10 crores in the previous financial year.<\/li>\n\n\n\n<li>Buyers responsible for making payments to resident sellers.<\/li>\n\n\n\n<li>Total purchases over Rs 50 lakh in a financial year attract TDS under this section.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Major_Relief_for_Sellers_from_FY_2025-26\"><\/span>Major Relief for Sellers from FY 2025-26<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"469\" src=\"https:\/\/www.caclubindia.com\/guide\/wp-content\/uploads\/2025\/03\/Budget-Update-1024x469.png\" alt=\"\" class=\"wp-image-1731\" srcset=\"https:\/\/www.caclubindia.com\/guide\/wp-content\/uploads\/2025\/03\/Budget-Update-1024x469.png 1024w, https:\/\/www.caclubindia.com\/guide\/wp-content\/uploads\/2025\/03\/Budget-Update-300x138.png 300w, https:\/\/www.caclubindia.com\/guide\/wp-content\/uploads\/2025\/03\/Budget-Update-768x352.png 768w, https:\/\/www.caclubindia.com\/guide\/wp-content\/uploads\/2025\/03\/Budget-Update.png 1200w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Rate_of_TDS\"><\/span>Rate of TDS<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The buyer is liable to deduct TDS at the rate of 0.1% on the amount exceeding Rs 50 lakh from a seller.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"For_Example\"><\/span>For Example<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>If a buyer purchases goods worth Rs 60 lakh, then TDS is applicable only on Rs 10 lakh at 0.1%.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Calculation\"><\/span>Calculation<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>A buyer with a turnover of \u20b912 crore, purchases goods worth \u20b970 lakh from a resident seller in FY 2024-25.<\/p>\n\n\n\n<p><strong>Working:<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-table is-style-stripes\"><table class=\"has-fixed-layout\"><tbody><tr><td>T<strong>hreshold:<\/strong><\/td><td>\u20b950 lakh.<\/td><\/tr><tr><td><strong>Taxable Amount:<\/strong><\/td><td>\u20b970 lakh &#8211; \u20b950 lakh = \u20b920 lakh.<\/td><\/tr><tr><td><strong>TDS Amount: <\/strong><\/td><td>\u20b920 lakh \u00d7 0.1% = \u20b92,000.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Time_of_Deduction\"><\/span>Time of Deduction<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>TDS is to be deducted \u2013<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>at the time of crediting to the seller&#8217;s account or<\/li>\n\n\n\n<li>at the time of making payments thereof any any mode, whichever is earlier.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Due_Date_To_Deposit_TDS\"><\/span>Due Date To Deposit TDS<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>TDS must be deposited by the 7th of the following month. For March deductions, the due date is April 30.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Key_Points\"><\/span>Key Points<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Deduct TDS on payment or credit.<\/li>\n\n\n\n<li>This section doesn&#8217;t apply to non-resident sellers.<\/li>\n\n\n\n<li>Failure to comply may lead to a disallowance of expenditure, up to 30%. Further demand can be also raised u\/s 201(1) of the Income Tax Act for non deposit of TDS and penalty can also be levied on the same u\/s 221 of the Act.<\/li>\n\n\n\n<li>Applies to purchases of both revenue and capital goods.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Non-furnishing_of_PAN\"><\/span>Non-furnishing of PAN<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>If a seller doesn&#8217;t provide a PAN, TDS is deducted at 5%, higher than the standard rate of 0.1%.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"GST_Consideration\"><\/span>GST Consideration<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>TDS is computed on amounts excluding GST.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"TDS_us_194Q_Vs_TCS_us_2061H\"><\/span>TDS u\/s 194Q Vs TCS u\/s 206(1H)<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>Particulars<\/strong><\/td><td><strong>Section 194Q<\/strong><\/td><td><strong>Section 206(1H)<\/strong><\/td><\/tr><tr><td><strong>Who is Responsible?<\/strong><\/td><td>Buyer<\/td><td>Seller<\/td><\/tr><tr><td><strong>Applicable<\/strong><\/td><td>Turnover of the buyer must exceed Rs. 10 cr during the previous year (excluding GST)<br>Aggregate purchase of goods exceeding Rs. 50 Lakh in previous year (including GST)<\/td><td>Turnover of the seller must exceed 10cr during the previous year (excluding GST)<br>Sale consideration received exceeds Rs. 50 Lakh in previous year (including GST)<\/td><\/tr><tr><td><strong>Effective From<\/strong><\/td><td>1st July 2021<\/td><td>1st October 2020<br><strong>(w.e.f 1 April 2025, TCS u\/s <a href=\"https:\/\/www.caclubindia.com\/guide\/tcs-on-sale-of-goods\/\">206C(1H)<\/a> will be removed).<\/strong><\/td><\/tr><tr><td><strong>When<\/strong><\/td><td>At the time of payment or credit<\/td><td>At the time of receipt<\/td><\/tr><tr><td><strong>Quarterly Statement<\/strong><\/td><td>Form 26Q<\/td><td>Form 27EQ<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Section 194Q simplifies TDS deductions on purchases exceeding Rs 50 lakh. Buyers deduct 0.1% TDS on qualifying purchases from resident sellers when PAN details are available.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"FAQs\"><\/span>FAQs<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1742637624653\"><strong class=\"schema-faq-question\">Is TDS applicable on import transaction?<\/strong> <p class=\"schema-faq-answer\">No, the obligation to deduct tax under this provision arises only when the payment is made to a resident seller.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1742637642969\"><strong class=\"schema-faq-question\">Is section 194Q applies to the purchase of capital goods?<\/strong> <p class=\"schema-faq-answer\">Yes, section 194Q is applicable to the purchase of capital goods or revenue goods.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1742637652016\"><strong class=\"schema-faq-question\">What shall be the treatment of debit note issued by the seller for computation of the TDS?<\/strong> <p class=\"schema-faq-answer\">The Debit Note increases the purchase value and the same should be considered for the calculation.<\/p> <\/div> <\/div>\n","protected":false},"excerpt":{"rendered":"<p>Section 194Q, introduced via the Finance Act 2021 and effective from 1st July 2021, mandates Tax Deducted at Source on [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":1732,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[4],"tags":[],"class_list":["post-1730","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-income-tax"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\r\n<title>Section 194Q: Relief for Sellers from 1st April 2025 - Tax Guide<\/title>\r\n<meta name=\"description\" content=\"Section 194Q mandates that a buyer must deduct TDS while making payments for the purchase of goods from a resident seller.\" \/>\r\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\r\n<link rel=\"canonical\" href=\"https:\/\/www.caclubindia.com\/guide\/section-194q-of-income-tax-act\/\" \/>\r\n<meta property=\"og:locale\" content=\"en_US\" \/>\r\n<meta property=\"og:type\" content=\"article\" \/>\r\n<meta property=\"og:title\" content=\"Section 194Q: Relief for Sellers from 1st April 2025 - Tax Guide\" \/>\r\n<meta property=\"og:description\" content=\"Section 194Q mandates that a buyer must deduct TDS while making payments for the purchase of goods from a resident seller.\" \/>\r\n<meta property=\"og:url\" content=\"https:\/\/www.caclubindia.com\/guide\/section-194q-of-income-tax-act\/\" \/>\r\n<meta property=\"og:site_name\" content=\"Tax Guide\" \/>\r\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/caclubindia\" \/>\r\n<meta property=\"article:published_time\" content=\"2025-03-24T12:31:11+00:00\" \/>\r\n<meta property=\"article:modified_time\" content=\"2025-06-26T10:25:44+00:00\" \/>\r\n<meta property=\"og:image\" content=\"https:\/\/www.caclubindia.com\/guide\/wp-content\/uploads\/2025\/03\/Section-194Q.png\" \/>\r\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\r\n\t<meta property=\"og:image:height\" content=\"630\" \/>\r\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\r\n<meta name=\"author\" content=\"Ram Sharma\" \/>\r\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\r\n<meta name=\"twitter:creator\" content=\"@caclubindia\" \/>\r\n<meta name=\"twitter:site\" content=\"@caclubindia\" \/>\r\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Ram Sharma\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\r\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/section-194q-of-income-tax-act\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/section-194q-of-income-tax-act\\\/\"},\"author\":{\"name\":\"Ram Sharma\",\"@id\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/#\\\/schema\\\/person\\\/96b5cab03947b2dc45eb60ac3a8cdacd\"},\"headline\":\"Section 194Q: Relief for Sellers from 1st April 2025\",\"datePublished\":\"2025-03-24T12:31:11+00:00\",\"dateModified\":\"2025-06-26T10:25:44+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/section-194q-of-income-tax-act\\\/\"},\"wordCount\":542,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/#organization\"},\"image\":{\"@id\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/section-194q-of-income-tax-act\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/wp-content\\\/uploads\\\/2025\\\/03\\\/Section-194Q.png\",\"articleSection\":[\"Income Tax\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/section-194q-of-income-tax-act\\\/#respond\"]}]},{\"@type\":[\"WebPage\",\"FAQPage\"],\"@id\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/section-194q-of-income-tax-act\\\/\",\"url\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/section-194q-of-income-tax-act\\\/\",\"name\":\"Section 194Q: Relief for Sellers from 1st April 2025 - Tax Guide\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/section-194q-of-income-tax-act\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/section-194q-of-income-tax-act\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/wp-content\\\/uploads\\\/2025\\\/03\\\/Section-194Q.png\",\"datePublished\":\"2025-03-24T12:31:11+00:00\",\"dateModified\":\"2025-06-26T10:25:44+00:00\",\"description\":\"Section 194Q mandates that a buyer must deduct TDS while making payments for the purchase of goods from a resident seller.\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/section-194q-of-income-tax-act\\\/#breadcrumb\"},\"mainEntity\":[{\"@id\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/section-194q-of-income-tax-act\\\/#faq-question-1742637624653\"},{\"@id\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/section-194q-of-income-tax-act\\\/#faq-question-1742637642969\"},{\"@id\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/section-194q-of-income-tax-act\\\/#faq-question-1742637652016\"}],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/section-194q-of-income-tax-act\\\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/section-194q-of-income-tax-act\\\/#primaryimage\",\"url\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/wp-content\\\/uploads\\\/2025\\\/03\\\/Section-194Q.png\",\"contentUrl\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/wp-content\\\/uploads\\\/2025\\\/03\\\/Section-194Q.png\",\"width\":1200,\"height\":630},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/section-194q-of-income-tax-act\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Section 194Q: Relief for Sellers from 1st April 2025\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/#website\",\"url\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/\",\"name\":\"Tax Guide\",\"description\":\"All tax related info news and updates in one place.\",\"publisher\":{\"@id\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/#organization\",\"name\":\"CAclubindia\",\"url\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/#\\\/schema\\\/logo\\\/image\\\/\",\"url\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/wp-content\\\/uploads\\\/2024\\\/05\\\/cropped-icon-384x384-1.png\",\"contentUrl\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/wp-content\\\/uploads\\\/2024\\\/05\\\/cropped-icon-384x384-1.png\",\"width\":512,\"height\":512,\"caption\":\"CAclubindia\"},\"image\":{\"@id\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/#\\\/schema\\\/logo\\\/image\\\/\"},\"sameAs\":[\"https:\\\/\\\/www.facebook.com\\\/caclubindia\",\"https:\\\/\\\/x.com\\\/caclubindia\",\"https:\\\/\\\/www.instagram.com\\\/caclubindia\\\/\",\"https:\\\/\\\/www.linkedin.com\\\/company\\\/caclubindia\\\/\",\"https:\\\/\\\/www.youtube.com\\\/caclubindia?sub_confirmation=1\"]},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/#\\\/schema\\\/person\\\/96b5cab03947b2dc45eb60ac3a8cdacd\",\"name\":\"Ram Sharma\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/cf5d44bd8d68d9d9aa2a1e2b40cdac941d69cd17a23bcc0bb394236f6d333496?s=96&d=mm&r=g\",\"url\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/cf5d44bd8d68d9d9aa2a1e2b40cdac941d69cd17a23bcc0bb394236f6d333496?s=96&d=mm&r=g\",\"contentUrl\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/cf5d44bd8d68d9d9aa2a1e2b40cdac941d69cd17a23bcc0bb394236f6d333496?s=96&d=mm&r=g\",\"caption\":\"Ram Sharma\"},\"url\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/author\\\/ramauthor\\\/\"},{\"@type\":\"Question\",\"@id\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/section-194q-of-income-tax-act\\\/#faq-question-1742637624653\",\"position\":1,\"url\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/section-194q-of-income-tax-act\\\/#faq-question-1742637624653\",\"name\":\"Is TDS applicable on import transaction?\",\"answerCount\":1,\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"No, the obligation to deduct tax under this provision arises only when the payment is made to a resident seller.\",\"inLanguage\":\"en-US\"},\"inLanguage\":\"en-US\"},{\"@type\":\"Question\",\"@id\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/section-194q-of-income-tax-act\\\/#faq-question-1742637642969\",\"position\":2,\"url\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/section-194q-of-income-tax-act\\\/#faq-question-1742637642969\",\"name\":\"Is section 194Q applies to the purchase of capital goods?\",\"answerCount\":1,\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Yes, section 194Q is applicable to the purchase of capital goods or revenue goods.\",\"inLanguage\":\"en-US\"},\"inLanguage\":\"en-US\"},{\"@type\":\"Question\",\"@id\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/section-194q-of-income-tax-act\\\/#faq-question-1742637652016\",\"position\":3,\"url\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/section-194q-of-income-tax-act\\\/#faq-question-1742637652016\",\"name\":\"What shall be the treatment of debit note issued by the seller for computation of the TDS?\",\"answerCount\":1,\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"The Debit Note increases the purchase value and the same should be considered for the calculation.\",\"inLanguage\":\"en-US\"},\"inLanguage\":\"en-US\"}]}<\/script>\r\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Section 194Q: Relief for Sellers from 1st April 2025 - Tax Guide","description":"Section 194Q mandates that a buyer must deduct TDS while making payments for the purchase of goods from a resident seller.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.caclubindia.com\/guide\/section-194q-of-income-tax-act\/","og_locale":"en_US","og_type":"article","og_title":"Section 194Q: Relief for Sellers from 1st April 2025 - Tax Guide","og_description":"Section 194Q mandates that a buyer must deduct TDS while making payments for the purchase of goods from a resident seller.","og_url":"https:\/\/www.caclubindia.com\/guide\/section-194q-of-income-tax-act\/","og_site_name":"Tax Guide","article_publisher":"https:\/\/www.facebook.com\/caclubindia","article_published_time":"2025-03-24T12:31:11+00:00","article_modified_time":"2025-06-26T10:25:44+00:00","og_image":[{"width":1200,"height":630,"url":"https:\/\/www.caclubindia.com\/guide\/wp-content\/uploads\/2025\/03\/Section-194Q.png","type":"image\/png"}],"author":"Ram Sharma","twitter_card":"summary_large_image","twitter_creator":"@caclubindia","twitter_site":"@caclubindia","twitter_misc":{"Written by":"Ram Sharma","Est. reading time":"4 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.caclubindia.com\/guide\/section-194q-of-income-tax-act\/#article","isPartOf":{"@id":"https:\/\/www.caclubindia.com\/guide\/section-194q-of-income-tax-act\/"},"author":{"name":"Ram Sharma","@id":"https:\/\/www.caclubindia.com\/guide\/#\/schema\/person\/96b5cab03947b2dc45eb60ac3a8cdacd"},"headline":"Section 194Q: Relief for Sellers from 1st April 2025","datePublished":"2025-03-24T12:31:11+00:00","dateModified":"2025-06-26T10:25:44+00:00","mainEntityOfPage":{"@id":"https:\/\/www.caclubindia.com\/guide\/section-194q-of-income-tax-act\/"},"wordCount":542,"commentCount":0,"publisher":{"@id":"https:\/\/www.caclubindia.com\/guide\/#organization"},"image":{"@id":"https:\/\/www.caclubindia.com\/guide\/section-194q-of-income-tax-act\/#primaryimage"},"thumbnailUrl":"https:\/\/www.caclubindia.com\/guide\/wp-content\/uploads\/2025\/03\/Section-194Q.png","articleSection":["Income Tax"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/www.caclubindia.com\/guide\/section-194q-of-income-tax-act\/#respond"]}]},{"@type":["WebPage","FAQPage"],"@id":"https:\/\/www.caclubindia.com\/guide\/section-194q-of-income-tax-act\/","url":"https:\/\/www.caclubindia.com\/guide\/section-194q-of-income-tax-act\/","name":"Section 194Q: Relief for Sellers from 1st April 2025 - Tax Guide","isPartOf":{"@id":"https:\/\/www.caclubindia.com\/guide\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.caclubindia.com\/guide\/section-194q-of-income-tax-act\/#primaryimage"},"image":{"@id":"https:\/\/www.caclubindia.com\/guide\/section-194q-of-income-tax-act\/#primaryimage"},"thumbnailUrl":"https:\/\/www.caclubindia.com\/guide\/wp-content\/uploads\/2025\/03\/Section-194Q.png","datePublished":"2025-03-24T12:31:11+00:00","dateModified":"2025-06-26T10:25:44+00:00","description":"Section 194Q mandates that a buyer must deduct TDS while making payments for the purchase of goods from a resident seller.","breadcrumb":{"@id":"https:\/\/www.caclubindia.com\/guide\/section-194q-of-income-tax-act\/#breadcrumb"},"mainEntity":[{"@id":"https:\/\/www.caclubindia.com\/guide\/section-194q-of-income-tax-act\/#faq-question-1742637624653"},{"@id":"https:\/\/www.caclubindia.com\/guide\/section-194q-of-income-tax-act\/#faq-question-1742637642969"},{"@id":"https:\/\/www.caclubindia.com\/guide\/section-194q-of-income-tax-act\/#faq-question-1742637652016"}],"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.caclubindia.com\/guide\/section-194q-of-income-tax-act\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.caclubindia.com\/guide\/section-194q-of-income-tax-act\/#primaryimage","url":"https:\/\/www.caclubindia.com\/guide\/wp-content\/uploads\/2025\/03\/Section-194Q.png","contentUrl":"https:\/\/www.caclubindia.com\/guide\/wp-content\/uploads\/2025\/03\/Section-194Q.png","width":1200,"height":630},{"@type":"BreadcrumbList","@id":"https:\/\/www.caclubindia.com\/guide\/section-194q-of-income-tax-act\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.caclubindia.com\/guide\/"},{"@type":"ListItem","position":2,"name":"Section 194Q: Relief for Sellers from 1st April 2025"}]},{"@type":"WebSite","@id":"https:\/\/www.caclubindia.com\/guide\/#website","url":"https:\/\/www.caclubindia.com\/guide\/","name":"Tax Guide","description":"All tax related info news and updates in one place.","publisher":{"@id":"https:\/\/www.caclubindia.com\/guide\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.caclubindia.com\/guide\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/www.caclubindia.com\/guide\/#organization","name":"CAclubindia","url":"https:\/\/www.caclubindia.com\/guide\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.caclubindia.com\/guide\/#\/schema\/logo\/image\/","url":"https:\/\/www.caclubindia.com\/guide\/wp-content\/uploads\/2024\/05\/cropped-icon-384x384-1.png","contentUrl":"https:\/\/www.caclubindia.com\/guide\/wp-content\/uploads\/2024\/05\/cropped-icon-384x384-1.png","width":512,"height":512,"caption":"CAclubindia"},"image":{"@id":"https:\/\/www.caclubindia.com\/guide\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/caclubindia","https:\/\/x.com\/caclubindia","https:\/\/www.instagram.com\/caclubindia\/","https:\/\/www.linkedin.com\/company\/caclubindia\/","https:\/\/www.youtube.com\/caclubindia?sub_confirmation=1"]},{"@type":"Person","@id":"https:\/\/www.caclubindia.com\/guide\/#\/schema\/person\/96b5cab03947b2dc45eb60ac3a8cdacd","name":"Ram Sharma","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/cf5d44bd8d68d9d9aa2a1e2b40cdac941d69cd17a23bcc0bb394236f6d333496?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/cf5d44bd8d68d9d9aa2a1e2b40cdac941d69cd17a23bcc0bb394236f6d333496?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/cf5d44bd8d68d9d9aa2a1e2b40cdac941d69cd17a23bcc0bb394236f6d333496?s=96&d=mm&r=g","caption":"Ram Sharma"},"url":"https:\/\/www.caclubindia.com\/guide\/author\/ramauthor\/"},{"@type":"Question","@id":"https:\/\/www.caclubindia.com\/guide\/section-194q-of-income-tax-act\/#faq-question-1742637624653","position":1,"url":"https:\/\/www.caclubindia.com\/guide\/section-194q-of-income-tax-act\/#faq-question-1742637624653","name":"Is TDS applicable on import transaction?","answerCount":1,"acceptedAnswer":{"@type":"Answer","text":"No, the obligation to deduct tax under this provision arises only when the payment is made to a resident seller.","inLanguage":"en-US"},"inLanguage":"en-US"},{"@type":"Question","@id":"https:\/\/www.caclubindia.com\/guide\/section-194q-of-income-tax-act\/#faq-question-1742637642969","position":2,"url":"https:\/\/www.caclubindia.com\/guide\/section-194q-of-income-tax-act\/#faq-question-1742637642969","name":"Is section 194Q applies to the purchase of capital goods?","answerCount":1,"acceptedAnswer":{"@type":"Answer","text":"Yes, section 194Q is applicable to the purchase of capital goods or revenue goods.","inLanguage":"en-US"},"inLanguage":"en-US"},{"@type":"Question","@id":"https:\/\/www.caclubindia.com\/guide\/section-194q-of-income-tax-act\/#faq-question-1742637652016","position":3,"url":"https:\/\/www.caclubindia.com\/guide\/section-194q-of-income-tax-act\/#faq-question-1742637652016","name":"What shall be the treatment of debit note issued by the seller for computation of the TDS?","answerCount":1,"acceptedAnswer":{"@type":"Answer","text":"The Debit Note increases the purchase value and the same should be considered for the calculation.","inLanguage":"en-US"},"inLanguage":"en-US"}]}},"_links":{"self":[{"href":"https:\/\/www.caclubindia.com\/guide\/wp-json\/wp\/v2\/posts\/1730","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.caclubindia.com\/guide\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.caclubindia.com\/guide\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.caclubindia.com\/guide\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.caclubindia.com\/guide\/wp-json\/wp\/v2\/comments?post=1730"}],"version-history":[{"count":2,"href":"https:\/\/www.caclubindia.com\/guide\/wp-json\/wp\/v2\/posts\/1730\/revisions"}],"predecessor-version":[{"id":1744,"href":"https:\/\/www.caclubindia.com\/guide\/wp-json\/wp\/v2\/posts\/1730\/revisions\/1744"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.caclubindia.com\/guide\/wp-json\/wp\/v2\/media\/1732"}],"wp:attachment":[{"href":"https:\/\/www.caclubindia.com\/guide\/wp-json\/wp\/v2\/media?parent=1730"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.caclubindia.com\/guide\/wp-json\/wp\/v2\/categories?post=1730"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.caclubindia.com\/guide\/wp-json\/wp\/v2\/tags?post=1730"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}