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TMI BlogImplication of GST & Income tax on purchase of a second hand machineX X X X Extracts X X X X X X X X Extracts X X X X ..... Implication of GST & Income tax on purchase of a second hand machine X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 quer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ies 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Customer (A) to transfer the ownership of the machine to Customer (B)
6 > Can customer (B) claim depreciation on the machine in future?
Reply By YAGAY and SUN:
The Reply:
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. X X X X Extracts X X X X X X X X Extracts X X X X
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