13 July 2016
Sir/ MamIf I am having a car on loan and having a business on proprietary firm basis then can I show the depreciation expense and interest expense as a business expense so that my personal capital is not reduced .( But I will be taking car in my personal name and not proprietary firm name )
13 July 2016
see , to claim depreciation on motor vehicle following conditions need to be fullfiled:
1. vehicle must be owned by you ( i.e in your name or in name of the prop. concern ) 2.The vehicle must be used for the purpose of business or profession during the year.
so yes you can claim depreciation on vehicle even if same is purchased in your name however to the extent the vehicle is used for personal purposes depreciation is disallowed.
remember ,any expenditure incurred for the purpose of the business is allowed to be claimed as business exp. thus, where vehicle is purchased on loan the interest on the loan would be allowable as business expenditure.
CAclubindia
