We have purchased a machine. Its original cost as per quotation was 40000(excluding GST). We have an old machine and we paid finally 32000(excluding GST) to vendor.
On what amount should be recognized in books as it this transaction has commercial substance
please note for selling machine under buy back, the buyer is liable to pay GST.
8000 to be recognised as sale of old machine
40000 to be capitalised in books.
CAclubindia
