Tax Management India. Com
Law and Practice  :  Digital eBook
Research is most exciting & rewarding


  TMI - Tax Management India. Com
Follow us:
  Facebook   Twitter   Linkedin   Telegram
Discussions Forum
Home Forum Goods and Services Tax - GST This
A Public Forum.
Anyone can participate to share knowledge.
We acknowledge the contributions of Experts/ Authors.

Submit new Issue / Query

Implication of GST & Income tax on purchase of a second hand machine, Goods and Services Tax - GST

Issue Id: - 113717
Dated: 8-5-2018
By:- Kishore Padav

Implication of GST & Income tax on purchase of a second hand machine


  • Contents

Our Company had sold an equipment to a customer (A) in May 2017 @ ₹ 20 lakhs (incl. CST). The customer (A) has paid us only ₹ 7 lakhs till date.He has expressed his inability to pay the balance ₹ 13 Lakhs and has asked the company to take back his machine or help him sell his machine. Now we have found a customer (B) who has agreed to purchase the machine @Rs.13 Lakhs from him. Since the company has to recover ₹ 13 lakhs from csutomer (A), it is insisting on getting the payment to be made directly to them by customer (B).

So in this deal, I have some queries

1 > Is GST applicable in this deal as Customer (A) is reselling the machine at a loss to Customer (B) ?

2 > Can company take payment from Customer (B) directly in its name.?

3 > Can customer (A) give an invoice to cutomer (B)?

4 > What are the income tax implications on Customer (B) ?

5 > Can he show machine purchased from Customer (A) in his ITR? and what are the documents required from Customer (A) to transfer the ownership of the machine to Customer (B)

6 > Can customer (B) claim depreciation on the machine in future?

Posts / Replies

Showing Replies 1 to 1 of 1 Records

Page: 1


1 Dated: 9-5-2018
By:- YAGAY and SUN

In our view the Customer A is under statutory liability to pay the GST while selling to Machine to B. In GST book adjustment and recovery from third party is allowed.


Page: 1

Old Query - New Comments are closed.

Quick Updates:Latest Updates