Buying a car in a business name (1 year old pvt ltd company)

This query is : Open

dx (Querist)
Follow

09 May 2015 Hello,

I own and operate a pvt ltd company in Gujarat that was registered in Feb 2014.

I am planning to buy a car for the business purpose.

How to go about it ?

What are the pros and cons of buying a car under a company name.

I am planning to pay EMI from the business account.

Your answers will be very helpful in making the decision.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
Follow

09 May 2015 You can buy the car in the name of company to get the depreciation and interest expenses as deduction in the company. In Gujarat, you have to pay higher RTO fees for registration in the company name. Looking to the tax benefits , it is still better to purchase the car in the name of the company.
.

dx (Querist)
Follow

11 May 2015 Thank you Mr. Bafna.

_______________________

Yes, I just checked with a car dealership about the RTO Fees.

The RTO fees will be almost double.

If I buy the car in the name of Company, can I make the Deposit and EMI payment through the company bank account ?

How will it reflect in the accounts ?
Assets / Expense.

I am new to Indian Business / Accounting / Tax Structure.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

Aakash Kumar

Sivashankary Sivaramakrishnan

Sasidhar B

ASIM ATREY AND ASSOCIATES

SANJAY GOSALIA

Subscribe Now

Buying a car in a business name (1 year old pvt ltd company)

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA