TDS Rate Chart Section 194Q — TDS on Purchase of Goods
Section 194Q — TDS on Purchase of Goods
Income Tax Act 1961 — s.194Q · ITA 2025 — s.393 + 400 + 402
Rate and threshold
| Condition | Rate |
|---|---|
| On the value exceeding ₹50 lakh | 0.1% |
- Threshold
- ₹50,00,000 aggregate purchases per seller per FY (TDS only on the excess)
- Timing of deduction
- At credit or payment, whichever is earlier. Deposit by the 7th of the following month (30 Apr for March).
- Who deducts
- Buyer whose total turnover exceeded ₹10 crore in the preceding FY
- Payee
- Resident seller
What this section covers
Purchase of goods of aggregate value exceeding ₹50 lakh in the FY from one seller
Worked example
Buyer (turnover ₹25 Cr) purchases ₹80 lakh from one vendor in the FY
TDS on (₹80,00,000 − ₹50,00,000) = ₹30,00,000 × 0.1% = ₹3,000.
Where 194Q applies, it overrides TCS — and s.206C(1H) TCS on sale of goods stands removed w.e.f. 1 Apr 2025 (Finance Act 2025) in any case.
Under the Income Tax Act 2025
From 1 April 2026, s.194Q of the 1961 Act maps to s.393 + 400 + 402 of the Income Tax Act 2025 (split mapping, per the official CBDT concordance). Consolidated into the s.393 TDS table under the ITA 2025.
Full 1961 → 2025 mapping for s.194Q →Frequently asked questions
Does 194Q apply on GST?
Per CBDT Circular 13/2021, TDS applies excluding GST when deducting at the time of payment against a GST-itemised invoice; on advance payments, on the full amount.
Both 194Q and (old) 206C(1H) hit the same transaction — who acts?
The buyer's 194Q obligation prevailed; from 1 Apr 2025 the question is moot as 206C(1H) TCS was removed by the Finance Act 2025.