Section 194Q - TDS on Purchase of Goods
Purchase of goods (introduced from 1 July 2021)
IT Act 2025→Section 393, Chapter X (TDS, consolidated)full mapper →
Rate (Individual / HUF)
0.1%
Rate (Company / Firm)
0.1%
Threshold limit
₹50,00,000 p.a.
Key rules
- Applicable if buyer's turnover in preceding FY exceeded ₹10 crore
- 0.1% TDS on purchase amount exceeding the threshold from a single seller
- 5% TDS if seller has not furnished PAN
- Does not apply if TCS under 206C(1H) is already collected by seller
Frequently asked questions
Can both 194Q and 206C(1H) apply on the same transaction?▾
No. If both 194Q and 206C(1H) are applicable, 194Q takes precedence and the seller need not collect TCS under 206C(1H).
Is 194Q applicable to purchase of services?▾
No. Section 194Q covers only goods. Purchases of services are covered by other sections (194C, 194J, etc.).
How is the threshold calculated?▾
The threshold applies per buyer-seller combination in a financial year. Once cumulative purchases from a single seller cross ₹50 lakh, TDS must be deducted on subsequent payments.
Related TDS sections
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