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Tax payment for purchase of second hand machine

Date: 20 Sep 2016    Group: Finance and Investments    Category: Tax Planning   

I have purchased second hand machine for commercial purpose for Rs 51000.
I have taken the deal on stamp paper.
Is there any tax liability I need to make against my purchase?
Is there any thing I need to do to make this deal a legal.
Seller has not given me original bill for the machine I have purchased.
Experts: do respond.

Have a query about tax payment procedure for purchase of a second hand machine? Find advice from experts on this page.

Author: Anju sharma    22 Sep 2016      Member Level: Silver     Points : 1  (Rs 1)    Voting Score: 0

Only on purchase of immovable property that too if value is more than Rs 500000 that time section of TDS will be attract.
In case of purchase of machine TDS will not attract. For purchase of machinery of valuing more than 51000 do not attract TDS . You can given full payment of 500000 without deducting TDS.

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Author: Mahesh    22 Sep 2016      Member Level: Gold     Points : 5  (Rs 5)    Voting Score: 0

First hand or second hand if you have got the receipt for any purchase made for professional reasons, then it is a legal deal. Make sure the taxes for transaction are properly cut from the sellers side too. Here I am referring to the sales tax and vat prices that includes in your final pricing. You have to use that quote while putting your taxed depreciating asset during the taxation. When you are purchasing a machine be it second hand or the first hand then based on the "depreciation assets" under business, you can register them. This helps you with the tax cut under the professional expenses if you are professional and business.

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Author: [Anonymous]    22 Sep 2016      Member Level: Bronze     Points : 2    Voting Score: 0

Thank you very much for your replies.
First, let me admit that I am not from commerce/finance background. Unfortunately I couldn't understand any way forward from both of the above replies. To add further in my case that neither the person from whom I purchased the machine nor my business is registered any where in any way.

But as I am aiming to register my business as a company in near future so I am interested in paperwork and tax formalities against my asset purchase (machines).

Please guide what I should do. Please help me i.e. where and how to pay tax (because its me only who can pay tax amount if there is any tax liability on the transaction of machine I purchased). Please also suggest if there is no tax liability against my purchase, then what should I do so that I can claim the worth price of my machine purchased.

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