Wealth tax on asset purchase on loan

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bharat (Querist)
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17 August 2011 a company purchased motor car on LOAN , i want to know that whether such asset comes in purview of wealth tax . please provide section refernce

thank you,

CA Raju Kumar Shaw

CA Raju Kumar Shaw (Expert)
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17 August 2011 Yes the asset will come under the perview of wealth tax under the definition of section 2(ea)except -
a)if the motor car is being used by the assessee in the business of running them on hire or
b)car treated as stock in trade.

from the aggregate of asset debt owed by the assessee as on valuation date will be deducted (in your case o/s amount of car loan).

bharat

bharat (Querist)
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17 August 2011 from the aggregate of asset debt owed by the assessee as on valuation date will be deducted (in your case o/s amount of car loan).

for this , provide section refernce please

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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17 August 2011 For motor car is an asset -refer Section 2(ea)(ii)

For Debts owed to be deducted refer Section 2(m) which defines Net Wealth as Taxable Wealth.

bharat

bharat (Querist)
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19 August 2011 thank u sir!!!!!

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