Buying a car in a business name (1 year old pvt ltd company)
This query is : Open
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.
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.
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.
.
.
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.
_______________________
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.
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