Purchased of a motor car
This query is : Resolved
13 July 2021
In a Private limited company there are two directors. Understanding between these two directors is any amount withdrawn from the company will be divided between this two.
Query:
One director wants to buy a car for personal use but he his buying the car from company name so that company will get the tax benefit ( depreciation & Interest on loan)
Total cost of car with registration is 46,00,000/-
Interest on car loan is 5,00,000/-
Total Cost is 51,00,000/-
Mode of payment is Rs. 15,00,000 down payment
Buy of personal car is Rs. 3,00,000/-
balance of Rs.loan amount 33,00,000/-
Query 1 how much amount will the other partner withdraw from company.
query 2 The total outflow is Rs. 48,00,000/- is that amount will be withdraw by other partner or the Total cost - tax benefits which the company will get that amount (example total cost is 50 - tax benefits 10 = Rs.40 )
Query:
One director wants to buy a car for personal use but he his buying the car from company name so that company will get the tax benefit ( depreciation & Interest on loan)
Total cost of car with registration is 46,00,000/-
Interest on car loan is 5,00,000/-
Total Cost is 51,00,000/-
Mode of payment is Rs. 15,00,000 down payment
Buy of personal car is Rs. 3,00,000/-
balance of Rs.loan amount 33,00,000/-
Query 1 how much amount will the other partner withdraw from company.
query 2 The total outflow is Rs. 48,00,000/- is that amount will be withdraw by other partner or the Total cost - tax benefits which the company will get that amount (example total cost is 50 - tax benefits 10 = Rs.40 )
13 July 2021
Rs 48,00,000 minus tax benefit amount should be considered for withdrawal.
13 July 2021
tax benefit will be taken care by both at the end .. why would the other director draw minus tax benefits ..
13 July 2021
Company is gaining tax amount (consider it as receipt) so for net drawal tax has to be reduced.
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