Depreciation expense

This query is : Resolved

KUSHAL CHHABRA (Querist)
Follow

13 July 2016 Sir/ MamIf I am having a car on loan and having a business on proprietary firm basis then can I show the depreciation expense and interest expense as a business expense so that my personal capital is not reduced .( But I will be taking car in my personal name and not proprietary firm name )

Ankit Taprania

Ankit Taprania (Expert)
Follow

13 July 2016 see , to claim depreciation on motor vehicle following conditions need to be fullfiled:

1. vehicle must be owned by you ( i.e in your name or in name of the prop. concern )
2.The vehicle must be used for the purpose of business or profession during the year.

so yes you can claim depreciation on vehicle even if same is purchased in your name however to the extent the vehicle is used for personal purposes depreciation is disallowed.

remember ,any expenditure incurred for the purpose of the business is allowed to be claimed as business exp.
thus, where vehicle is purchased on loan the interest on the loan would be allowable as business expenditure.

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

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

N N V Satish

Pushkar Nagda

Subbiah S

Suneel Shah

AKCJ INFO

Subscribe Now

Depreciation expense

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Accountant

CA Final

Manager- Finance and Compliance

Senior Executive

GST CONSULTANT

GST CONSULTANCY