Is 1% TDS applicable for CIP?

TDS will not be applicable for CIP orders because you are buying crypto-assets via CIP. The TDS is applicable only on selling crypto assets. When you make a CIP transaction, the token gets added to your portfolio. If you choose to sell that token from your portfolio, the 1% TDS will then be deducted. 

For example, if you had opted in for the BTC CIP of Rs. 2,000 per week. Every week, BTC worth Rs. 2,000 gets bought and is added to your portfolio. Once you decide to sell this BTC from your portfolio, only then the 1% TDS is deducted from the sell transaction value.