Is TDS applicable on wholesale textile payments in India?

TDS (Tax Deducted at Source) applicability on wholesale textile payments depends on the payment type and the buyer and seller status under the Income Tax Act.

Key rules for textile wholesale buyers:

• Section 194Q: If your annual purchases from a single supplier exceed ₹50 lakhs, you must deduct TDS at 0.1% on purchases above that threshold (applicable if your own turnover exceeds ₹10 crore)
• Section 206C(1H): Seller must collect TCS (Tax Collected at Source) at 0.1% if sales to a single buyer exceed ₹50 lakhs
• For most small and medium boutique buyers (annual purchase below ₹50 lakhs per supplier), TDS/TCS under these sections does not apply