Purchased of a motor car

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This query is : Resolved

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This discussion concerns a private limited company where one director wishes to purchase a car for personal use under the company's name to leverage tax benefits like depreciation and loan interest. The core queries revolve around how the total cost of the car impacts the other director's potential withdrawal from the company, and whether tax benefits should be factored into the net amount considered for withdrawal.

Kunal

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 Understanding between these two directors is any amount withdrawn from the company will be divided between this two.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