Purchased of a motor car

This query is : Resolved

Kunal (Querist)
Follow

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 Understanding between these two directors is any amount withdrawn from the company will be divided between this two.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 )

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

13 July 2021 Rs 48,00,000 minus tax benefit amount should be considered for withdrawal.

Kunal

Kunal (Querist)
Follow

13 July 2021 tax benefit will be taken care by both at the end .. why would the other director draw minus tax benefits ..

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

13 July 2021 Company is gaining tax amount (consider it as receipt) so for net drawal tax has to be reduced.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

ASHOK KUMAR TEKURU

Sidhartha sankar pillai

Pritanu Chakraborty

bhagat ram goyal

GIRISH K SATTI

Subscribe Now

Purchased of a motor car

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA