Applicability of Section 194Q on purchase of Fixed assets

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Prabhu K (Querist)
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29 September 2023 Dear Experts,
Greetings!
In preceding financial year (i.e., FY 2022-23) our client has no turnover, but there is a receipt of share capital Rs.28Crores and Fixed deposit receipts Rs.48Crores during FY 2022-23
During FY 2023-24 my purchase value of Fixed assets from particular vendor exceeds Rs.3 Crores.
Can any one guide me whether 194Q is applicable for fixed assets purchased during the FY 2023-24 ?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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29 September 2023 194Q applicable for fixed assets purchase but it is not applicable in view of no turnover in the previous year.

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Prabhu K

Prabhu K (Querist)
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29 September 2023 Dear Seetharaman Sir,
Thank you very much for your answer.
There is no turnover in previous financial year but there is a receipt of share capital Rs.28Crores and Fixed deposit receipts Rs.48Crores during previous financial year.
Whether we need to consider this previous year receipt for applicability of 194Q.
Thank you

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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29 September 2023 No, such receipts will not fall under turnover.

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Prabhu K

Prabhu K (Querist)
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29 September 2023 Dear Seetharaman Sir,
Thank you very much for your clarification. Now I understood.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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29 September 2023 You are welcome...
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