Buying laptops and car on behalf of overseas client
This query is : Resolved
Quick Summary
30 May 2022
Hello I run a small business in India. All my clients are in United States. Since they outsource work to me, I have to buy laptops on their behalf. Now these laptops are not assets for me Or my company in India. Given a scenario where they paid me 10 lakhs to buy laptops I know only 40% that is 4 lakhs will be written as depreciation and rest on 6 lakhs will I have to pay 25%(pvt Ltd company) tax on it?
Someone suggested to invoice client for laptop invoice amount and show it as reimbursement.
What is the best way to go about it, and can I do the same for car as well? Claim it as reimbursement and not as an asset.
Someone suggested to invoice client for laptop invoice amount and show it as reimbursement.
What is the best way to go about it, and can I do the same for car as well? Claim it as reimbursement and not as an asset.
30 May 2022
Whose name laptop purchased and in whose name car registered.
30 May 2022
Since my client does not have presence in India, every thing has been purchased in the name of my company.
30 May 2022
So capitalise the purchase and claim depreciation in your books.
Keep 10 lacs under advance. Adjust progressively while billing to the clients to the extent of depreciation claimed.
Keep 10 lacs under advance. Adjust progressively while billing to the clients to the extent of depreciation claimed.
30 May 2022
This seems like good logical answer, Thanks.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Multiple payment of self assessment tax for A Y 2025-2026
- CAPITAL GAIN REDEVELOPED FLAT
- Requirement under FEMA &RBI
- CLOSING STOCK QUERY
- REGARDING ITR FILING QUESTION
- Gst reverse charge mechanism to be claimed in the month of payment
- ITR 44AD SECTION
- ITC BENEFIT ON BROKRAGE PAID
- Itr processing refund
- F&O reporting in ITR
- WHERE I SHOW GST 0% INVOICE IN GSTR1 (EITHER TABLE 7 OR TABLE 8)
- Concept of Vendor and customner reconciliation
- Mistake in e-invoice identified after 24 hours
- EXPORT PAYMENT
- NRI ITR2 account in 2025-26.
- Query regarding reporting of exempt foreign remuneration in ITR (AY 2026-27)
- FEMA/RBI treatment — Amazon.ca arbitrage (US buy, Canada sell, goods never enter India)
- Goods return by customer
- INWARD REMITTANCE FOREIGN
- CPC and SAC
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
