Fixed asset by director

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This discussion addresses the complex situation of a director purchasing a second-hand vehicle for company use, where ownership transfer is delayed due to an existing loan. The core issue is how to correctly record this fixed asset in the company's financial statements, considering Section 187(1) of the Companies Act, 2013, and the implications of the sale deed allowing the director to use the asset. It questions whether the asset should be brought onto the company's books, potentially via crediting shareholder loan, and if a new sale deed from the director to the company is necessary.

shinu

shinu (Querist)

29 June 2021 Sir,
Our director has entered into sale deed for the purchase of second hand vehicle and ownership is not transfeered,,Ownership will be transferred whn the amount of loan is fully paid. Loan is existing on the asset at the time of sale.The same asset is used by the company.need to how the asset can be brought to the statement.Whether the same need to be shown in dpt-3?..whether we can bring the asset by crediting shareholder loan

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

29 June 2021 Section 187(1) of the Companies Act,2013 doen't permit to account the assets in co's books.

shinu

shinu (Querist)

29 June 2021 In that sale agreement the other party has given to use the property to director.... Whether we need to execute sale deed in the name of company from director name to use the asset

shinu

shinu (Querist)

29 June 2021 In that sale agreement the other party has given to use the property to director.... Whether we need to execute sale deed in the name of company from director name to use the asset

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