TaxTMI 
TaxTMI 
Implication of GST & Income tax on purchase of a second hand machine
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....mplication of GST & Income tax on purchase of a second hand machine<br> Query (Issue) Started By: - Kishore Padav Dated:- 8-5-2018 Last Reply Date:- 9-5-2018 Goods and Services Tax - GST<br>Got 1 Reply<br>GST<br>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 t....
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....o 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 queri....
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....es 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 C....
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....ustomer (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.<br> Discussion Forum - Knowledge Sharing ....