Purchase truck on loan

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Bhakti

Bhakti (Querist)
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01 October 2017 Journal entry for Bought out truck on loan from bank
Journal Entry for Installments

Amol S Joglekar

Amol S Joglekar (Expert)
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01 October 2017 Purchase of truck
debit truck a/c
credit bank loan
credit cash/bank (for down payment if any)

for interest charged by bank on the loan
debit bank interest
credit bank loan

for payment of installment
debit bank loan
credit cash/bank as the case may be

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Bhakti

Bhakti (Querist)
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01 October 2017 In this purchase Truck has been purchased from Truck supplier showroom so that in this case what will be accounting treatment for Truck supplier showroom. Is Truck suppler will come in picture in books of accounts?

Amol S Joglekar

Amol S Joglekar (Expert)
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01 October 2017 if you have given some advance for booking, then yes......supplier's account should be opened.

Bhakti

Bhakti (Querist)
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01 October 2017 Suppler bill there is TCS has been charged by Truck supplier. Under which rule they have been charged TCS.
This TCS shall be claimed during Tax audit?

Amol S Joglekar

Amol S Joglekar (Expert)
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01 October 2017 01. yes, the same can be claimed while filing your income tax return.
02. Please ask the said supplier to give the certificate of TCS, so that you can find out the section under which TCS has been done.

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)
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01 October 2017 As per Sec 206 C “ Every person, being a seller, who receives any amount as consideration for sale of a motor vehicle of the value exceeding ten lakh rupees, shall at the time of receipt of such amount, collect from the buyer, a sum equal to one percent of the sale consideration as income tax.

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)
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01 October 2017 You can claim such TCS at the tym of filing tax return.

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