Buying new car

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When buying a new car for your business, consider whether to register it in your personal name or your company's name. While buying in your own name may allow for income tax deductions on interest and depreciation, Goods and Services Tax (GST) input tax credit is generally blocked unless your business involves car sales, passenger transport, or driving instruction.

Choice Palace

Choice Palace (Querist)

21 September 2023 Should I buy Car by my name , i. e., proprietor or by company name to get interest expenses and depreciation?
Also if buying car for company purpose should I get GST return for car or not?

RAJA P M

RAJA P M (Expert)

21 September 2023 1. Interest Expense and Depreciation not available if buy Your own name... 2. What is Your business...???

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

28 October 2026 A proprietorship has no separate legal identity, so a car bought in the proprietor's own name and used for the business does qualify for depreciation and loan interest under income tax; GST ITC on the car is blocked under Sec 17(5)(a) unless you deal in cars, carry passengers or run a driving school.

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