TDS on Supplier Payments Above ₹50 Lakhs | Section 194Q Explained in Simple Hindi
Overview
Section 194Q of the Income Tax Act requires certain buyers to deduct TDS on purchase of goods once payments to a single supplier cross ₹50 lakh in a financial year. This provision affects businesses that regularly buy scrap, raw material or bulk goods, and often overlaps confusingly with TCS obligations under Section 206C(1H) on the seller's side.
Topics Covered
- Applicability threshold and turnover conditions for Section 194Q
- TDS rate and timing of deduction
- Interplay between Section 194Q and Section 206C(1H)
- Exemptions and identifying which section applies
- Penalty for non-deduction of TDS
Who this is for: Business buyers, especially in scrap or bulk trading, whose annual supplier payments approach or exceed ₹50 lakh.
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