Can i buy a car under proprietorship firm name?

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Quick Summary

A proprietorship firm is not a separate legal entity, so a car is generally purchased in the owner's personal name. However, if the car is used for business, depreciation and related expenses can be claimed. Payments can be made from either personal or business bank accounts.

Rashtra vijay

Rashtra vijay (Querist)
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11 October 2018 I have a proprietorship firm for clothing, I am planning to buy a car, should i buy it under my own name or should I buy it under the firm name?
If i buy it on personal name or firm name can I pay laons from any or the bank accounts (personal/current acc)?

Thanks In advance

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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12 October 2018 Buy it on personal name. Prop firm is not a legal entity no assets can be purchased in firm name. Payment can be made from any bank account no problems.

Rashtra vijay

Rashtra vijay (Querist)
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12 October 2018 ok Thanks sir, can I get extra benefits of tax savings or depreciation ?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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12 October 2018 You can claim depreciation if it's used for business.

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