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TDS Section 194Q — Purchase of goods (buyer-side TDS)

FY 2025-26 · Rate 0.1%

Section
194Q
Rate (with PAN)
0.1%
Rate (no PAN)
5%

What does this section cover?

TDS by buyer on purchase of goods above ₹50 lakh in a FY from a resident seller — counterpart to 206C(1H) TCS.

Why this section: Large buyers (turnover > ₹10cr) must deduct 0.1% on the amount above ₹50L paid to any single resident seller in a FY.

Note: If 194Q applies, seller's 206C(1H) TCS is waived. Computed only on the amount EXCEEDING ₹50L (not total). Excludes goods on which other TDS applies.

Key facts

Threshold
₹50,00,000 per FY per seller
Applicable for
FY 2025-26
Who deducts
Buyer with turnover > ₹10 crore in preceding FY
Paid to
Resident seller of goods
Statutory source
Section 194Q, Income Tax Act
Compute and file this TDS with CAhelper→Free TDS computation, Form 26Q prep, challan generation — Part of KLI.

Common terms accountants use

If your description mentions any of these, Section 194Q is likely the right answer. The matcher in this tool is a keyword scorer — not an AI classifier — so cross-check borderline cases against the official CBDT TDS rate chart.

purchase goodsbuyer tdsgoods purchaseb2b purchasetrader purchaseraw material purchasebuyingpurchasegoodsvendorlaptopsstockinventoryprocurementbuy goodsbuying goodspurchase from vendor1 crore goods

Related TDS sections

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Source: curated from the CBDT TDS rate chart. Dataset snapshot: 2025-04-01. Rates can change between Finance Acts and notifications — verify before deducting.