Car insurance

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SUBHASH JAIN (Querist)
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11 August 2011 any citation is available for insurance premium on new car purchase is allowable exp. instead of capitalize.

I think some citation is available

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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11 August 2011 Insurance of Car if is pertains to 1 year period, it can be debited and claimed as an expense. Annual Insurance premium ca be debited on due basis.

CA. Lohith Jagadeesh

CA. Lohith Jagadeesh (Expert)
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11 August 2011 Hi,

From my Knowledge, i dont think there is a case which intends the same, however if there is any i would presume that its bad in LAW, as its against the principles of CAPITAL V/s REVENUE understanding....!!

Regards
CA. Lohith. J
B.Com,ACA,CS,(ICWA),SAPM Hons,ITF Hons

SUBHASH JAIN

SUBHASH JAIN (Querist)
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12 August 2011 WHEN INSURANCE PREMIUM IS A RECURRING EXP. LIKE PETROL AND OTHER MAINTENANCE EXP. THE WHY SHOULD IT CAPITALIZED. FROM THE DATE OF CAR PURCHASE.

CA. Lohith Jagadeesh

CA. Lohith Jagadeesh (Expert)
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12 August 2011 Hi,

The view expressed does not pertain to Regular Insurance Premiums paid which can be claimed as regular expenditure, But i guess you should have worded ur question better.

You had asked for " Insurance Premium on new car purchase "

Regards
CA. Lohith. J
B.Com,ACA,CS,(ICWA),SAPM Hons,ITF Hons

SUBHASH JAIN

SUBHASH JAIN (Querist)
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13 August 2011 MY QUESTION IS ONLY THAT FOR THE FIRST YEAR INSURANCE PREMIUM SHOULD CAPITALIZED OR BOOK AS EXPENSES.

SUBHASH JAIN

SUBHASH JAIN (Querist)
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14 August 2011 please brief me about wealth tax

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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14 August 2011 First year premium is to be shown as expense. It is not making addition to the value of the asset.

SUBHASH JAIN

SUBHASH JAIN (Querist)
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15 August 2011 THANKS A LOT FOR YOUR VALUABLE SUPPORT