25 April 2012
A pvt. Ltd. Company have 5 cars.Two cars purchased in 2010-11. Three cars in 2011-12.Company is charging depreciation on car. Car is given to its employees for use in offical purpose only.
Would these cars will come under assets for wealth tax? What will be the value should be taken?
25 April 2012
(ii) Motor cars: All types of motor cars whether Indian or foreign will be treated as assets. Exclusion: Motor car used by the assessee in the business of running them on hire or as stock-in-trade will be excluded from the scope of the term “assets”. Example: Maruti cars will not be treated as assets in the hands of Maruti Udyog Ltd. Similarly, in the hands of automobile dealers who purchase and sell cars, such cars will not be treated as assets.
26 April 2012
The cars will come under the assets for Wealth tax computation as in your case these have neither being used for hiring nor it is a part of your stock.Its WDV will be used for calculation.
CAclubindia
