21 October 2016
Dear Sir,
A company have 2 directors. They owned the5-6 cars and RC is also on his names. They got a vehicle loan on it and that money directly came to company A/c from lenders. Auditor is showing as company Assets and getting benefits of Depreciation and other tax benefits. So please suggeat is he right , as per rules. kindly explain. Sanction letter is on the company name.
21 October 2016
Company can only claim depreciation if the cars are in its name. Company and directors are 2 different legal persons. The treatment is wrong. However, you may like to discuss this with the auditor to find out what is the real rationale behind them doing this.
24 October 2016
The RC must b in the name of the Company to claim Depreciation on the Assets. U must ask the Auditor, the excuse for claiming the Depn. in the books of Company.
CAclubindia
