please Clarify -its urgent

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Atul M (Querist)
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21 October 2016 Dear Sir, A company have 2 directors. They owned the5-6 cars and RC is also on his names. They got a vehicle loan on it and that money directly came to company A/c from lenders. Auditor is showing as company Assets and getting benefits of Depreciation and other tax benefits. So please suggeat is he right , as per rules. kindly explain. Sanction letter is on the company name.

Thrissurkkaran Ishtan

Thrissurkkaran Ishtan (Expert)
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21 October 2016 Company can only claim depreciation if the cars are in its name. Company and directors are 2 different legal persons. The treatment is wrong. However, you may like to discuss this with the auditor to find out what is the real rationale behind them doing this.

Atul M

Atul M (Querist)
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21 October 2016 Thanks sir.

Sandeep Dharar

Sandeep Dharar (Expert)
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24 October 2016 The RC must b in the name of the Company to claim Depreciation on the Assets. U must ask the Auditor, the excuse for claiming the Depn. in the books of Company.

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