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Income Tax
Is Section 194Q applicable if buyer turnover is below Rs. 10 crore?
Asked by Expert CA · 31 Jul 2026
Our client's turnover in FY 2024-25 was Rs. 8.2 crore. In FY 2025-26 purchases from one vendor already crossed Rs. 60 lakh. Does 194Q apply this year? Also how does 206C(1H) interact?
2 Answers
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Accepted answer
Section 194Q applies only if the buyer's turnover/gross receipts/sales exceeded Rs. 10 crore in the *preceding* financial year. If last year was Rs. 8.2 crore, 194Q generally does not apply this year. The seller may still need to consider TCS under 206C(1H) if the seller's turnover exceeded Rs. 10 crore. Always verify PAN and portal status before concluding.
Expert CA · 1 Aug 2026
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Also check whether the client is part of a larger group or has multiple GSTINs under the same PAN — turnover for 194Q is computed at PAN level for the buyer criteria. Keep a written note in the TDS file.
Expert CA · 1 Aug 2026