Tax treatment for car bought on loan-proprietorship
This query is : Resolved
04 February 2013
I am proprietor and want to buy a car on bank loan to use for my business purpose. Can I use the ex-showroom price of car towards claiming yearly depreciation on WDV and components of yearly interest, road tax and insurance as expense. Since the car would be hypothcated to the bank, can I still claim depreciation on that.
04 February 2013
Yes, you can claim depreciation on your purchase price i.e invoice price and all other expenses you can claim like road tax,like tax, insurance and maintain expenses etc..... and also interest on loan you can claim as expenses and deduction allowable. In case if you use such car for personal use then the proportinate of expenses for such use will be disallow as personal expenses.
OM SAI SRI SAI JAI JAI SAI
OM SAI SRI SAI JAI JAI SAI
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