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Purchase of card swipe machine on a different trade license

Mohit Kumar (Article Student) (23 Points)

08 December 2016  

My friend is plannig to buy a card swipe machine for his shop but the trade license has a different trade and the card would be swiped for a different trade. Would that be a problem?

Here's the little backstory, two brothers run different business but by some mishap, their trade licenses have the other persons name on it. For example, A is into X and B is into Y business, but the trade license for X business is in the name of B and vice versa, and this has led to the above mentioned scenario.

Please, advice how can we proceed. 

Thanks.


 2 Replies

Arun Jain (Account Professional) (479 Points)
Replied 10 December 2016

As you told both are brother, why dont A buy Swipe machine for B for X Business and give it to B and same can be done by B to give machine to A.

 

Supose A runs a firm name ABC whos proprietor is B , A can ask B to purchase machine for firm ABC and give it to him, he can also do the same thing for B Business.

I hope if they are running each other firms they can do this small favor.

Mohit Kumar (Article Student) (23 Points)
Replied 10 December 2016

But would this create any problem from income tax perspective, since the machine is bought by another firm and used in a different firm? 


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