Car purchase by director

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

13 February 2014 Dear Sir,
Our Company's Director want to purchase Lux. Car from Finance by company, but it shows loss from last three years for specific resign. Now Car dealer is not allow to finance car from this firm because of loss, & if we finance it Individually will create heavy Income Tax on Director. Please provide Solution for this.

Regards
Yogesh

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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13 February 2014 then first give loan to co by directors and then purchase should be done from co accounts.

Querist : Anonymous

Querist : Anonymous (Querist)

13 February 2014 By from whom we provide loan to company, If director provide, then it will create problem in Tax Benefit. How is Possible?

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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13 February 2014 if director gives loan then there is no income tax applicable as there is no income as per sec 2(24) of income tax act...so what is your query now.

Querist : Anonymous

Querist : Anonymous (Querist)

13 February 2014 Car Financier told us this company is in loss then, how company can raise capital for purchase of car for his Director.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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13 February 2014 then director should give loan to a person having sound financial background and ask him to purhase if directors having tax problem...bt if directors directly buys it then what is the tax problem?

Querist : Anonymous

Querist : Anonymous (Querist)

13 February 2014 Director want that this Asset should record in our company books of account...

Querist : Anonymous

Querist : Anonymous (Querist)

13 February 2014 Director want that this Asset should record in our company books of account...

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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13 February 2014 then first ask other person to buy it and then purchase from him so that co will pay and accordingly asset will be included in co books of accounts.

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