I use a brother plain paper fax machine. It is good. I am so far satisfied. I got good reviews about it from the persons who use it. So I bought it. Since it is a plain paper fax, it is a bit expensive - about 8300. Brother fax machines are imported and distributed in India by Godrej. So the warranty support is from Godrej. Per paper cost comes to about Rs. 1.50/-
BTW, there is a MFD (Muli-Function Device) from HP that could also serve your purpose. Its a printer, scanner, fax, telephone, modem, etc. all rolled into one. For about the same price, you get a scanner too, although it is not a flat bed scanner, so you can't scan from books/mags.