Car Maintainance and running exp

This query is : Resolved

ANIL (Querist)
Follow

11 September 2008 Two/Three cars are in the name of Director (personal)and booked in his personal books of accounts, but it is used for staff usages in the office, can we put running and maint expenses in the books of account of the company (pvt ltd.)or do we need to have to make some kind of agreement, director doesn't want to charge any rent or hiring charges from the comapny.

Kindly advise.

Regards.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
Follow

11 September 2008 Agreement is necessary.

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
Follow

12 September 2008 While agreement is necessary, it is better the vehicles are transferred to company's name to avoid unnecessary litigation with tax authorities.

Raman R

Raman R (Expert)
Follow

12 September 2008 If the vehciles are personally owned by the Director (Personal), agreement is a must. Further the applicability of provisions of Companies Act to the contract should also be looked into.

As suggested by Mr. Raghavan, it is advisable to avoid these kind of transactions and better allot the vehicles registered in the company name

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

Vishal Kapadiya

Nithish Kothari

Choudhary

Jeegar Valera

Raviraj ponkshe

Subscribe Now

Car Maintainance and running exp

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA