30 June 2014
Hello, My querry is there is one party(Seller) who sells his car to Broker. And after that Broker sells that car to another party. While ownership transferred from One party(Seller) to Broker, Broker didn't made change name in RC Book. So, When Other Party(Buyer) makes payment to Broker but in RC book name of broker is not there then is it problem while making payment in Income Tax?
01 July 2014
If there is a transfer deed from the seller to the broker then it will amount to sell irrespective of the fact that the broker has not muted his name in the place of the owner. This transfer shall be govern by the Transfer of property act not by the Motor Vehicle Act. Therefore, the transaction will be treated as sale at the time of handover the property from the seller to the buyer along with a valid document.
14 July 2014
Thank you sir. But a transfer deed was nat made between Broker and Seller i.e. it is oral agreement of sale of car then the answer remain same?
17 July 2014
SOMEHOW YOU HAVE TO PROVE BEFORE THE TAX AUTHORITY THAT YOU HAVE RECEIVED THE SALES PROCEEDS AND HANDED OVER THE PHYSICAL POSSESSION OF CAR. THAT WILL AMOUNT TO SALE.
CAclubindia
