Propritorship and personal expense
This query is : Resolved
13 December 2018
Hi,
I am an audiologist by profession and I run my own clinic. I use my car (registered owner is my husband) for daily commuting to my clinic and spend around 2000 for petrol every week. I am just wondering whether I can expense it off in my clinics books of accounts. Also should I show the SB accounts open in my name (not in clinic's name) while preparing the accounts. My clinic is registered as "proprietorship". Thanks in advance for your valuable suggestions.
I am an audiologist by profession and I run my own clinic. I use my car (registered owner is my husband) for daily commuting to my clinic and spend around 2000 for petrol every week. I am just wondering whether I can expense it off in my clinics books of accounts. Also should I show the SB accounts open in my name (not in clinic's name) while preparing the accounts. My clinic is registered as "proprietorship". Thanks in advance for your valuable suggestions.
13 December 2018
for daily commuting to clinic petrol expenses may be claimed as conveyance expenses in books of account.
SB account shall be opened in the name of properietor only and clinic bank account will be current account.
SB account shall be opened in the name of properietor only and clinic bank account will be current account.
Message likes :
1 times
14 December 2018
Yes... You can show as per transaction and accounting activities.
But, Better to open a current account.
Note : You can't provide rental to Car.
14 December 2018
Claim of Expense is related to Profession and hence it can be claimed and will be allowed.
Regarding Books of Accounts, there is accounting principle of seperate entity i.e. business is difference from businessman. Therefore when you prepare the books of clinic, bank account related to clinic should be shown in the books. For accounting it does not matter whether it is current account of saving account. Yes, any transaction not related to business but of personal nature will be routed through proprietor's capital/ current account only.
Regarding Books of Accounts, there is accounting principle of seperate entity i.e. business is difference from businessman. Therefore when you prepare the books of clinic, bank account related to clinic should be shown in the books. For accounting it does not matter whether it is current account of saving account. Yes, any transaction not related to business but of personal nature will be routed through proprietor's capital/ current account only.
25 December 2018
Thanks all for the update
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- About TDS & Income Tax
- Pass word to open justification report for Q1 for FY 2026-27
- Section 194JA & JB Income which ITR Form to use
- PPF interest-As Exempt Income disclosure
- Scrutiny and reopening of past returns
- F & O PROFIT REPORTING FOR AY 2026-27
- Booth for sales promotion
- Type of Capital Gain
- VALUATION OF PRIVATE LIMITED COMPANY SHARES
- Average Cost Of High Quality Diamonds
- TDS on Rent received on redevelopment of building
- Tax on Deemed Capital Gain
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- Upload Level ValidationITR3Category of Defect B/D
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- Taxation in the hands of Landowner under JDA
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
