Purchase of Goods

Withholding tax requirements are classified based on the purchase of goods, purchase of services, and the type of vendor organization. Here are the withholding tax requirements classified based on the purchase of goods.

Accounting units used across this document:

  • 100k = 1 Lakh;
  • 10 Lakhs = 1 Million;
  • 10 Million = 1 Crore

Oil

Oil may be purchased from:

  • Company;
  • Dealer;
  • Gas Transmission Company.

This table displays the withholding tax requirements based on purchase of oil:

Slab Amount Threshold/FY Company Dealer Gas Transmission Company
1 Less than 2 Lakhs Nil 1% 3%
2 Above 2 Lakhs 0.60% 1% 3%

Other than Oil

All items excluding oil are classified under Other than Oil.

This table displays the withholding tax requirements based on purchase of goods excluding oil:
Slab Amount Rate
1 Less than 20 Lakhs 3%
2 Greater than 20 Lakhs - Less than 1 Crore 4%
3 Greater than 1 Crore 5%